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.
The maid agencies
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)
This is another black mark against Singapore as a whole.
In the interest of the occupants of Singapore, local or foreign, the cost of domestic help is deliberately suppressed as low as it possibily can. FDW must be affordable, nevermind if it is exploitive of the women of our neighbouring countries.
FDW benefit the economy as it frees the household to strive for higher economic goals.
How do I know whether the agency I go to did not mark up the salary?
Any bodies I can fall on or check with?