CCS's reply to HOME's letter to Voices, TODAY, "Agencies not anti-competitive"

Fixing of salaries is unlawful

We refer to Mr Jolovan Wham’s letter to TODAY dated 10 October 2011 on “Agencies not anti-competitive”.

The Competition Commission of Singapore (CCS) issued an infringement decision against 16 employment agencies for breaching Section 34 of the Competition Act, which prohibits price-fixing activities by competitors, amongst other anti-competitive conduct. The agencies were given the opportunity to make representation to CCS and these were taken into account when deciding on the financial penalties.

Companies should note that engaging in price-fixing activity is illegal and opens a company up to investigations and possible financial penalties under the Competition Act.  A company which finds itself in any discussions involving price-fixing (or other anti-competitive activity) must state clearly that it disagrees with the unlawful activity, will not participate, clearly and publicly distance itself from the content of the discussion, and immediately remove itself from such discussions.  

As an enforcement agency, CCS does not take a view on what should be the appropriate level of monthly salaries for new Indonesian foreign domestic workers in Singapore.  What is prohibited under the Act is the attempt by the employment agencies to collectively fix salaries, thereby restricting competition in the market.

CCS encourages any party with information on anti-competitive conduct to contact CCS on our hotline 1800-325 8282 or e-mail us at ccs_feedback@ccs.gov.sg. We run a Leniency Programme that offers immunity to a company for its involvement in cartel activities under certain conditions.