The REC has been investigating anti-competitive behaviour by 7 recruitment businesses that operate in the construction sector and last Friday it revealed its findings.
The investigation, by the Professional Standards Committee of the REC followed a four year investigation by the OFT into charges that the seven recruitment businesses breached the Competition Act.
Following the REC investigation, five of the seven businesses received a public reprimand from the REC’s PSC that will stay on their records for the next two years. This is the maximum sanction available save for expulsion, said a PSC spokesperson.
The companies in question are Anders Elite, Fusion People, Randstad CPE, Eden Brown and Henry Recruitment. All five have had detailed conversations with the REC’s PSC and have put measures in place to prevent further breaches occurring.
Randstad issued its own statement about the matter saying that the breach took place prior to the Randstad Group’s acquisition of two companies, Beresford Blake Thomas and Hill McGlynn & Associates.
These 2 companies had entered into a collective boycott of an intermediary company, Parc UK and they were also involved in price fixing rates for the supply of construction candidates to certain companies and intermediaries. However, the OFT discovered that these activities did not last long and had limited effect.
Anders Elite also made a statement saying it supports the goal of REC to encourage the highest standard of behaviour amongst recruiters and appreciates the ongoing work of the Confederation to achieve it.
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