OFT accuses eight construction recruitment firms of competition law breach

The Office of Fair Trading (OFT) has accused eight construction recruitment companies of breaching competition law.

In a Statement of Objections issued this morning, the OFT alleged that the firms breached the Competition Act 1998 by agreeing to fix target fee rates for the supply of workers to construction firms. It also accused them of collectively boycotting certain other recruitment companies who were acting as intermediaries by agreeing to refrain from entering into contracts with them.

The eight firms named in the Statment of Objections are:

• A Warwick Associates
• Beresford Blake Thomas
• CDI AndersElite
• Eden Brown
• Fusion People
• Hays Specialist Recruitment
• Henry Recruitment
• Hill McGlynn Associates

The OFT alleged that the behaviour took place between late 2004 and early 2006, although the exact duration of a particular company's involvement varied.

OFT chief executive John Fingleton said: "For a market to work well, companies should compete to supply services and set prices independently. If we find evidence of anti-competitive activity we will use the appropriate powers to punish the companies involved. If proven, the alleged practices in this case would amount to a serious breach of the law."

The companies named in the Statement will now be given a chance to respond before the OFT makes any final decisions on their cases.