National economy Competition Commission wants to strengthen conduct in the labor market that complies with antitrust law

The Secretariat of the Competition Commission (ComCo) has come across evidence of unlawful competition agreements on the labor market. The authority wants to take action against this with so-called "best practices" for labor law players that have yet to be developed.

Keystone-SDA

11.07.2024, 10:45

SDA

In a preliminary investigation opened at the end of 2022, the ComCo Secretariat found that over 200 companies from various sectors had regularly exchanged detailed information on wages, wage trends, fringe benefits and other working conditions over a period of years, as detailed in a press release issued on Thursday. There are therefore indications of illegal agreements.

In particular, agreements between companies on wages and wage components or non-solicitation agreements are problematic under the Cartel Act, the ComCo continues. However, agreements between social partners, such as collective labor agreements, are not affected.

However, the Competition Commission does not intend to initiate a formal investigation. Instead, the Competition Commission Secretariat wants to seek a close exchange with the social partners, authorities and other interested parties. Subsequently, "best practices" for conduct on the labor market that complies with antitrust law will be developed. The aim is to create legal certainty for the labor market and its players more quickly and efficiently.

The Competition Commission takes action against the economically or socially harmful effects of cartels and other restrictions on competition. This also includes the protection of employees against agreements between employers. "Wage agreements can lead to falling wages and fringe benefits and have a negative impact on production and downstream prices," is how the Competition Commission explains its involvement. In addition, coordinated non-solicitation agreements could reduce the dynamism of the labor market, with negative effects on wages, productivity and innovation.