The Brazilian Administrative Council for Economic Defense (CADE) is conducting an investigation against 33 large multinationals for alleged cartel formation in the Brazilian labor market. The investigation began after a leniency agreement and focuses on suspicions that these companies shared sensitive information, such as salaries and benefits, with the aim of restricting competition in the hiring and retention of professionals.

These companies would have exchanged sensitive commercial information through email groups, websites and WhatsApp, using two main groups: Executive Salary Group (GES) and the Executive Group of Benefits Administrators (GEAB), who organized regular meetings, both in person and virtual, after the Covid-19 pandemic.

The investigation indicates that the multinationals involved shared information about wages, health plans, transportation, food, and other employment benefits, as well as data on employees who have been laid off or are on vacation. This exchange of information would be intended to control and limit salary growth and the provision of benefits, making it difficult for employers to compete in recruiting qualified workers.

According to Cade, the anticompetitive practices would have occurred between 2004 and 2021, negatively impacting the Brazilian labor market by limiting workers' mobility and restricting their chances of obtaining more advantageous job offers.

If the allegations are confirmed, the companies could be fined up to 20% of annual turnover, as provided for by Law No. 12,529/2011, which regulates competition law in Brazil. The fines are intended to curb practices that harm the free market and wage negotiations.

These practices would have directly impacted the working conditions of professionals in various areas, restricting competition between companies for qualified labor and, consequently, limiting salary increases and improvements in benefits offered to workers.

The investigation remains ongoing, and Cade is seeking to gather more evidence to determine the degree of impact on the labor market and possible penalties for the companies involved.

These cases reinforce attention to information sharing practices between competing companies and their impacts on the labor market, especially in sectors with a high concentration of large corporations.

This information was collected by us through access to Technical Note No. 5/2024 issued by CADE in Administrative Proceeding No. 08700.001198/2024-49.