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Friday, September 30, 2011

16 maid agencies fined for price fixing

Sixteen employment agencies in Singapore have been fined S$152,563 for price fixing.

They were charged with attempting to collectively raise the monthly salaries of new Indonesian maids - from S$380 to S$450.

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Faced with a dwindling supply of Indonesian maids due to competition from Hong Kong and Taiwan, the maid agencies felt it was necessary to raise salaries in Singapore to remain attractive.

But by agreeing to act collectively, the agencies were found guilty of collusion.

"Competitors should be individually deciding their own prices. They should not be coming together to discuss prices, especially future pricing conduct," said Toh Han Li, assistant chief executive of the Competition Commission of Singapore (CCS).

The agencies were fined between S$5,000 and S$42,000 each, based on the company's annual income.


ORIGINAL SOURCE

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