SIXTEEN maid agencies have been accused of engaging in
price-fixing by meeting to discuss a collective pay increase for
new Indonesian maids, from $380 to $450 a month.
They now have until June 27 to prove otherwise to the
Competition Commission of Singapore (CCS) or face a fine, a CCS
statement said on Friday.
The 16 agencies include major players such as Nation Employment,
Best Home Employment Agency and Homekeeper International.
Employment agencies should determine the salaries of new
Indonesian maids independently, 'without discussion or agreement
with any other employment agency', said the CCS statement.
It was first reported in February that the anti-competition
watchdog was investigating the agencies, which reportedly met in
January to discuss the pay rise to ease a supply crunch that had
arisen because of competing demand from other countries.
A Proposed Infringement Decision was issued to the agencies
yesterday, asking them to present their arguments before the CCS
makes a final decision.
In the letter, the agencies were notified of the fine they could
expect to pay if they were found to have infringed anti-competition
rules.
The Straits Times understands that most of the 16 agencies are
trying to decide what to do next. But at least one agent has
decided he will not submit any appeal, and will pay the imposed
fine - believed to be in the thousands.
It is understood that the fine differs from agency to agency.
"Financial penalties are calculated based on the relevant turnover
from new Indonesian maids, the seriousness of the infringement and
other aggravating or mitigating factors," said a CCS spokesman.
One agent, who declined to be named, said: "We have not profited
from this. Moreover, we stopped using $450 as the benchmark within
three, four days of being warned, so why are we being fined for all
these months of wrongdoing?"
A lawyer, who gave his opinion on condition of anonymity because
the case is still open, said: "Technically, it doesn't matter if
the parties profit from it or not, although they may raise it
as mitigation. CCS will just have to consider the impact on
competition, including the impact consumers face as a result of the
arrangement.
Some agencies, which were not among the 16 agencies being
probed, have since adjusted the pay of maids. Employers now pay
about $400 to hire a new Indonesian helper, up from $360
previously, said Mr Allan Seow, manager of maid agency FME
Management.
When contacted, the Ministry of Manpower said it would not
comment at this stage "as CCS has yet to finalise its
decision".
(Taken from The Straits Times, Saturday, May 14 2011, Page
A16)