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

[Newsjock]

Source: San Jose Mercury News

Top executives at six prominent tech companies, including Silicon Valley titans Apple, Google and Intel, have admitted that they created a series of secret intra-company agreements designed to prevent their employees from job switching between them, and have agreed to a settlement in which the companies would end so-called "no solicitation agreements," the U.S. Justice Department announced Friday.

The six companies, a group that also includes Adobe Systems, Intuit, and Pixar, acknowledged that starting in 2005 they agreed to not "cold call" employees at selected competitors to try to recruit them, a network of deals that eliminated a significant form of competition between the companies and violated federal anti-trust law, the Justice Department said.

According to the government's complaint, a network of no-solicitation deals were formed and actively managed by senior executives between Google and Apple, and between Google, Intuit and Intel. Apple, meanwhile, also put no-solicitation deals in place with Adobe and Pixar.

While the companies acknowledged the government's findings as part of the settlement, they did not admit to violating the law. Under the agreement, which must be approved by a federal court and which would run for five years, they will be required to stop the practice, and file compliance plans with the government. No fines were levied; a Justice Department official said the government does not have statutory authority to levy fines for these kinds of anti-trust cases.

Read more: http://www.mercurynews.com/top-stories/ci_16166037

[mopinko]

1. common practice. dh works in IT. they have

an agreement with their contractors not to poach in either direction. maybe it is ok if it is in writing, instead of being secret. but it is common in the financial industry here.

[flyarm]

2. it's called COLLUSION to keep employees value down!

[ArcticFox]

3. Damn useless justice department

So, for five years they won't (wink, wink) try to poach each others' employees? Really?

More likely, the once-explicit agreements will just be shifted to the box called "implied agreements."

Presumably, such non-poaching agreements are very lucrative for the companies and equally damaging to employees' salaries. Yet, the Department of (In)Justice doesn't have the authority to levy a single fine? No authority to do anything but exact a promise to play fair?

I have to say, while I don't agree with too many of their policies, I think I'm even more enraged by the absolute uselessness of our so-called "government of the people, by the people and for the people."

This government ain't working for me, that's for damn sure.

[RandomThoughts]

4. Another Union.

Big Corporate IT Union.

See the hypocrisy and why it is really class warfare and how the 'union busting' has nothing to do with breaking of workers unions.

[Hello_Kitty]

12. Good point

Whenever someone around me starts union-bashing I like to ask them why they're against working people banding together to protect their interests when companies do it all the time. If you're anti-union you should also be anti-Chamber of Commerce and business alliances of any kind.

[comtec]

5. No what they do is make you sign a non-competition clause

which is supposed to prevent you from jumping ship to the competition!

If my old company tries to hold me to mine i'll take them to court.

in this economy, it's unconscionable to do that to someone...esp someone who was FIRED!

[lovuian]

6. now that is free capitalism at its finest

next ship them in from other countries

[McCamy Taylor]

7. Uh oh. So much for the free market.

[davidinalameda]

8. sorry if I don't feel bad for a lot of overpaid techies

the DOJ could be doing so real work

[sonomak]

9. Is there a blacklist not to hire certain people as well?

If they have a secret agreement not to let people "transfer" from one company to another, maybe there is good reason to assume they have a secret database to keep out certain people??

[zogofzorkon]

10. Why poach an employee when it easier to curry one and so much cheaper

[Newsjock]

11. How dumb was Silicon Valley hiring conspiracy? Let us count the ways

Source: San Jose Mercury News

... It's not just that their actions are shameful. It's not just that these actions violate everything Silicon Valley represents. These agreements reveal a profound insecurity about their ability to compete on free and fair terms with each other.

But more than that, these actions are unspeakably DUMB.

... 4. Now, everyone working at one of these companies has got to be thinking the same thing: "Did I get screwed?" That's not exactly the kind of gung ho, morale building conversations you want going on. Dumb.

5. Those who do think they got the shaft may sue. And because this is an antitrust finding, the settlement will allow anyone who wins in federal court to "recover three times the damages the person has suffered." Say goodbye to whatever measly amounts the companies saved through these agreements. Dumb.

6. People maintained lists. They kept records. According to the complaint: "Pixar instructed human resources personnel to adhere to the agreement and maintain a paper trail in the event Apple accused Pixar of violating the agreement." Dumb.

Read more: http://www.mercurynews.com/twitter/ci_16167551