Biznes Fakty
Biedronka and 32 transport companies accused of collusion in the labor market by the Office of Competition and Consumer Protection
The Office of Competition and Consumer Protection (UOKiK) has filed charges against Jeronimo Martins Polska, the parent company of Biedronka, along with 32 transport firms and eight individuals, for alleged collusion in the labor market. This collusion is said to have hindered drivers from moving between the transport companies that serviced Biedronka’s distribution centers.
The Office of Competition and Consumer Protection (UOKiK) has issued charges against Jeronimo Martins Polska, which owns the Biedronka chain, along with 32 transport companies, and eight individuals who may be directly accountable for entering into an agreement that restricts competition, according to a statement from the office.
Involvement in an agreement that limits competition can lead to fines of up to 10% of a company’s revenue. Those managers who are believed to have participated in the collusion could face penalties of up to PLN 2 million.
What did the collusion entail?
„The potential repercussions of the alleged collusion could manifest as follows: Mr. Paweł had been employed as a driver for several years at a transport firm servicing the Biedronka chain. Eventually, due to stagnant wages, he decided to leave his current employer in search of better conditions with another carrier servicing the same Biedronka distribution center. However, he was turned down, despite his qualifications and experience. He later learned unofficially that his application had been obstructed because the transport companies had collectively agreed not to permit drivers to switch jobs, and the retail chain ensured that this was enforced. Consequently, Mr. Paweł was unable to secure new employment in the area for three months,” the report states.
The President of the Office, Tomasz Chróstny, noted that the Office of Competition and Consumer Protection (UOKiK) suspects that transport companies and Jeronimo Martins Polska have entered into an agreement intended to restrict the movement of drivers between transport firms serving Biedronka distribution centers.
„In doing so, these businesses may have aimed to prevent the poaching of each other’s employees. Such behavior is not only illegal under competition law but is also unacceptable from a human standpoint. Individuals should have the freedom to choose and change their place of employment,” stated Chróstny, as quoted in a press release.
Reportedly, the transport companies might have coordinated anti-competitive actions within specific distribution centers, with the owner of the Biedronka chain potentially overseeing these agreements across Poland and enforcing compliance, such as by denying access to its premises for drivers wishing to change employers without prior consent.
Agreements that are illegal
It was mentioned that the business owners could have stipulated that if drivers previously employed by a carrier servicing a certain Biedronka distribution center sought employment with another transport company, they would be barred from working for the new employer for a specified duration (typically three months).
This practice was assessed to minimize the risk of losing employees to competitors from the perspective of transport companies, while it would restrict drivers’ professional mobility and opportunities for salary increases.
Agreements that prevent competition for employees, commonly referred to as no-poach agreements, are illegal because they impact a critical aspect of competition among businesses – the wages offered to workers. Such agreements can lead to lower salaries or reduced wage growth compared to what would occur in the absence of such collusion.
We reached out to Biedronka for their stance on the accusations. As of the time of publication, no response has been received.
