Tainan City Excavator & Bulldozer Operators Union

Case:

Key Words:

Union, price table of heavy-duty machines and tools

Reference:

Fair Trade Commission Decision of January 14, 2009 (the 897th Commissioners' Meeting), Disposition Kung Ch'u Tzu No. 098016

Industry:

Rental and Leasing of Construction Machinery and Equipment (7711)

Relevant Laws:

Article 14(i) of the Fair Trade Law

Summary:

1. Tainan City Excavator & Bulldozer Operators Union (hereinafter referred to as TCEBOU) was reported to have raised fee standards for excavator and bulldozer service (including rent for machine and manual fee) since July 1, 2008. This has become a burden to the construction industry. The complainant also attached the 2008 price table of heavy-duty machines and tools stipulated by TCEBOU. Since its violations to the Fair Trade Law are obvious, the Commission investigated on the case.
2. Investigation and result:
   (1) The members of TCEBOU charges service fees to excavate carry, level, and squeeze earth's surface, hills, and river banks through heavy machinery, excavator & bulldozer designed for construction works. Currently, there are about 360 members of TCEBOU, approximately 60-70% of excavator & bulldozer operators in Tainan City.
   (2)During the eleventh 4th–term Directors and Counselors Meeting on April 11, 2005, TCEBOU formulated its 2005 price table of heavy-duty machines and tools. The 2005 table had not been modified for years. As international prices for crude oil, steel and other raw material roar, members requested to adjust the price table. The first 5th-term Provisional Directors and Counselors Meeting thus was held at Laoyou Restaurant (No. 268, Shengli Rd., Tainan City) on June 3, 2008 and resolved a new price table of heavy-duty machines and tools. In June 2008, TCEBOU notified members and construction enterprises in the lower-stream market that the new price table will take effect since July 1, 2008.
   (3)Although TCEBOU did not monitor whether members comply with the price table of heavy-duty machines and tools, and members can determine the price based on trading conditions, members were indeed requested to raise the rental price for heavy-duty machines and tools since July 1, 2009. This affected the interests of renters for heavy-duty machines and tools and was sufficient to affect the market function of supply and demand of lease services of heavy-duty machines and tools.
3. Grounds for Disposition.
   TCEBOU formulated its 2005 price table of heavy-duty machines and tools in year 2005. It also convened a Provisional Directors and Counselors Meeting on June 3, 2008 to raise the rental price for heavy-duty machines and tools. Its 2008 price table of heavy-duty machines and tools was later formulated and TCEBOU notified its members and construction enterprises in the lower-stream market regarding the 2008 price table of heavy-duty machines and tools. Its above acts were sufficient to affect the market function of supply and demand of lease services of heavy-duty machines and tools. Therefore, it violated Article 14(1) of the Fair Trade Law for the prohibition of concerted action. The union was ordered to cease the aforesaid unlawful act and an administrative fine of NT$ 100,000 was imposed pursuant to Article 41 of the Fair Trade Law.

Summarized by Hung, Chin-An; supervised by Sun,Ya-Chuan