Investigation into employee poaching and non-poaching agreements in the automotive supplier industry
Companies in the automotive supply industry have been placed under review over allegations of no-poaching agreements restricting employee transfers and wage-sharing.
The Competition Authority has initiated a formal investigation against 37 undertakings and 2 associations of undertakings operating in the automotive supply industry over allegations of no-poaching agreements aimed at preventing employee transfers and the sharing of wage information.
Scope of the Investigation
It was announced that a broad-scale investigation process has been launched by the Competition Authority concerning a total of 37 undertakings and 2 associations of undertakings operating in the automotive supply industry.
Employee Transfer Allegations
In line with serious findings obtained during the preliminary research phase, it is assessed that the companies in question made gentleman's agreements through meetings and various communication channels to avoid hiring employees from one another.
Wage Information Sharing
The ongoing examinations focus on allegations that companies may not only have restricted employee transfers but also shared sensitive information regarding wages and other working conditions with each other.
Impacts on Employee Rights
The possibility that such anti-competitive agreements may restrict employees' ability to change jobs, receive higher wages, or move to competitor companies offering better working conditions is being investigated.
Occupational Orientation Obligations
The possibility that this situation may have led employees to turn entirely to different sectors instead of moving to a different company suitable for their professional experience is being examined in detail.