Apple, Google, Intel, other tech firms admit secret agreements to not poach employees

Apple, Google, Intel, other tech firms admit secret agreements to not poach employees

www.mercurynews.com

It was, according to the federal complaint, the chummiest of secret clubs among Silicon Valley's corporate elite. The membership rules were simple: Don't cold-call any of our employees with job offers and we won't cold-call any of yours.

Alleging that secret agreements between the high-tech giants stymied competition, constituted collusion to keep salaries in check and ultimately hurt employees who never got the chance to answer that cold-call, the Justice Department filed an antitrust...

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Ahh, so THIS is how they keep the little man down!

..as Frederickson points out, "The problem is, there is also a victim.'' While these practices may be good for the bottom line, they are blatantly unfair to the rank-and-file, she said, adding, "You take some engineer who is in some real niche (area) and if he can't go to work for four out of five companies, he is basically stuck at his current employer and he's missing out on more money."

Man. I hope the DOJ nails these firms to the wall.

This is similar to a story I have been hearing on the streets recently that in Nashville, TN all the night club owners have gotten together and fixed the price for local musicians at $50.00 per night for gigs. TOTAL BS!

As musicans we were making as much as $150 or $200 per night EACH as far back as 1985. And more for private gigs!



www.mercurynews.com
(visit the link for the full news article)

club owners do not have anything to do with what a musician makes. its ultimately up to the band (well, the bands management), then promoters and talent buyers fill in the blanks....

at least that has been my experience with touring bands.

Originally posted by TrueAmerican


Ahh, so THIS is how they keep the little man down!

..as Frederickson points out, "The problem is, there is also a victim.'' While these practices may be good for the bottom line, they are blatantly unfair to the rank-and-file, she said, adding, "You take some engineer who is in some real niche (area) and if he can't go to work for four out of five companies, he is basically stuck at his current employer and he's missing out on more money."

Man. I hope the DOJ nails these firms to the wall.

What is the DOJ going to do? Force them to poach each other?

reply to post by RestingInPieces

What is the DOJ going to do? Force them to poach each other?

The obvious answer is heavy fines.

But they'd have to prove it first...

Hey..I just noticed your registration date!

Originally posted by TrueAmerican

..as Frederickson points out, "The problem is, there is also a victim.'' While these practices may be good for the bottom line, they are blatantly unfair to the rank-and-file, she said, adding, "You take some engineer who is in some real niche (area) and if he can't go to work for four out of five companies, he is basically stuck at his current employer and he's missing out on more money."

That quote is such BS. The "agreement" is to not cold-call the other companies' people. It is NOT to not make those people offers if they apply for a job. Trust me, I work in the tech area. Most of them (engineers, techs, business admin, etc) I work with have bounced from company to company including the big boys who are part of this agreement.

It amazes me how many of them have done this because it is the fastest and sometimes ONLY way to advance in their careers. Many of these companies have time-in-grade formulas such that you have to have been at your current level for a minimum amount of time to be eligible to get a promotion. So you can bust your hump for two, three or more years at the same company until you get that much desired promotion. Or you can take your knowledge, experience, and abilities and offer it to another company to get that promotion sooner.

I know at least three people in my own department who did that in the last month. They're all starting new, higher-paying jobs for our number 1 competitor. So...tell me again how this "agreement" has stifled income growth and kept people stuck in their current jobs?

It's Shakespeare people - full of sound and fury, signifying nothing.

I don't see anything illegal about two business owners agreeing with each other not to cold-call recruit the other's employees.

Matter of fact, I think that's noble and actually honest.

If an employee thinks he can make more at a competitor, he can always apply. He doesn't have to wait to be called by a recruiter..

reply to post by TrueAmerican


I work for one of the listed tech companies. It was in our contract that we could not seek employment at another tech company for a certain period of time if we were to quit. I really had no idea that it was illegal. I am curious if this will translate to higher salaries or if this will simply line a few lawyers pockets somewhere and not really change anything.

Oh, they should just make it like the NBA or MLB. Sign the top people to the biggest contracts, then wait until they become free agents then every company can go after them, that is unless a employee wants a trade. Then you can trade him for their leading scorer and two or three draft picks to equal the value. There could even be software employee fantasy games.

reply to post by Karlhungis


Yeah well that's just a non-compete agreement. This is different.

If you guys think about it, this has everything to do with antitrust laws, and they should be nailed accordingly. With personal information on employees kept very close and safeguarded, one of the only ways a company can contact a prospective employee is through work. And chances are, they met at work while doing business.

A typical example, and this has happened to me, is in sales. As a sales rep for a company, you can end up dealing with several different departments of another company, in any number of capacities. You have a lot of exposure, and one typical way is if you take one of their accounts or outbid them through a smarter and better proposal. If another company takes a liking to you, and wants to talk to you about offering you more money, chances are they are going to contact you off a business card- and not a home number. That means they may have to call you at work, because they have no other number.

These secret agreements the article talks about prevent exactly that- no phone calls at work. And it's wrong. I say nail them.

Originally posted by anonamousantichrist
club owners do not have anything to do with what a musician makes.

Umm, as a 30-year pro musician and audio engineer, I can tell you that is patently false when it comes to cover bands. Club owners have everything to do with what a cover band makes, and many original bands as well.