It is embarrassing for competitors to have a cartel of temporary staff

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As one of the key players in the domestic temporary employment and personnel service market, it has a 30-year history WHC Group Regrets that the Hungarian Competition Authority (GVH) has recently condemned the Hungarian Association of Personnel Consultants (SZTMSZ), an interest group representing some economic actors in the Hungarian temporary employment and staffing services market, for a cartel offense; WHC Group with the intention of avoiding possible market misunderstandings, misrepresentations.

In its decision, the Hungarian Competition Authority imposed a HUF 1 billion fine on the Hungarian Association of Personnel Consultants
Photo: MTI

It was emphasized that they were not now or before a member of the Hungarian Association of Personnel Consultants, so the GVH’s condemnatory decision does not affect the group.

“We consider it important to state that we are committed to fair market conduct to the utmost and will continue to serve our customers in this spirit,” they said in connection with the cartel case described at the end of last year.

It is memorable: in the proceedings of the authority, it discovered a cartel in the personnel consulting market, in which the Hungarian Association of Personnel Consultants restricted competition among its members. According to this, the minimum fee and other conditions for temporary employment and recruitment within the organization have been fixed for seven years from 2011.

However, fixing prices is the most serious restriction of competition and indirectly results in a significant additional social burden.

In addition to the minimum fee, the internal rules contained several other sections aimed at restricting competition.

Personnel consultants also froze healthy competition by fixing prices – Photo: MTVA / Imre Faludi

For example, a ban on seducing each other’s employees between members has been put in place, and it has also been established in which cases it is possible to apply with the data and CVs of employees of other companies in public procurement procedures for temporary employment. A fine of HUF 1 billion was imposed on the competition authorities in 23 competition cases involving 23 foreign and domestic companies.

In an interview with our newspaper, Csaba Rigó, President of the GVH, stated that the Competition Authority will continue to take strict action against cartel, so the cooperation agreement with the Public Procurement Authority has recently been updated and a similar pact with the Prime Minister is being renewed.