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US Justice Dept. Investigates IT Hiring Practices

Zecheus writes "The Wall Street Journal (no paywall on this story) reports that the Justice Department is 'stepping up' an investigation of hiring practices of US technology firms, such as Google, Intel, IBM, and Apple. From the article: 'The inquiry is focused on whether companies, particularly in the technology sector, have agreed not to recruit each other's employees in ways that violate antitrust law. Specifically, the probe is looking into whether the companies' hiring practices are costing skilled computer engineers and other workers opportunities to change jobs for higher pay or better benefits.'"

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  1. Re:Here We Go ... by theshowmecanuck · · Score: 5, Interesting

    It isn't bad for the company's, but it sure sucks for the employees. That is the point of the investigation. Several years ago when I was working for a major telecom billing system vendor in Saint Louis I was trying to find work elsewhere. Every head hunter in the city told me the same thing: they wouldn't talk to me while I still worked for that vendor. It seems that vendor was a major client of all of the head hunters as they were doing a lot of hiring at the time, and told the head hunters they would not deal with them again if they ever found out that they had helped one of their employees (like me) find a job somewhere else. So it made it that much more difficult to find other work. I did eventually, but this is very much like the situation in the article. In fact I think this is likely way more prevalent and is what the government should be looking at. But it is also very difficult to combat, so they will likely only go after the low hanging fruit; as in cases like Google, MS, IBM, etc.

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    -- I ignore anonymous replies to my comments and postings.
  2. Re:Verifying hiring practices... by martin-boundary · · Score: 4, Interesting
    I think there is a reasonable question here, tough. For example:

    I've always wondered why Microsoft hasn't hired a lot of Google's engineers away from Google. In the last 10 years, Microsoft has had huge amounts of cash in the bank. It would have been easy to simply offer each of the 100 top Google engineers literally double their salary each, just to come work for MS. Even if they didn't do anything specific (or did their own thing), as long as they didn't work for Google it would be a net gain. That would have been such an easy way to gut a competitor, much easier than trying to build a better search engine, or to buy Yahoo!.

    Not every company could do that, but the top tech companies are swimming in cash, and targeted poaching is an option. But it doesn't seem to be used anywhere near its full (business) potential.

  3. How about investigating H1B BS instead? by Anonymous Coward · · Score: 5, Interesting

    I work for a really big (20+ Billion dollars in revenues) company's IT department.

    Of late, they have become enamored with one of the big Indian outsourcing companies. I'm sure their folks are wonderful - indeed, of the ones I've worked with, it's about the same breakdown of wonderful/OK/awful as everyone else.

    Based on job listings recently found on one of the internet job sites, they appear to have asked the outsourcer to find someone to work in my area as a technical manager of sorts. The job listing is full of internal lingo and acronyms - nobody from outside the company would know what it's talking about; indeed, some of the acronyms are commonly thought of as something else. (For example, suppose IBM stood for, internally, the "Internet Bandwidth Management" system but it says in the job listing "must be familiar with IBM computer technologies.")

    I'm usually one to attribute stuff to stupidity before malice or deviousness.

    But is the crap job listing a devious attempt to prove that nobody with US work rights already is suitable, thereby making it OK to bring in someone on a visa - and totally ignoring the fact that the visa guy won't be suitable either?

    Or is it just stupidity? After all, HR folks mess up technical job listings all the time.

    I don't know, but I do know that the H1B bull shit needs to be cleaned up. Given the employment turmoil of the last year, why would you possibly, honestly, need to bring someone in from overseas?

  4. Who does this apply to? by ErichTheRed · · Score: 4, Interesting

    I'm guessing this this really only applies to the high-level, superstar tech talent, right? Especially with firms like Microsoft and IBM, what could they possibly be losing when IBM hires someone who's been working on the grammar checker for the Norwegian version of Word? Or the lower-level code monkey keeping an obscure feature of WebSphere MQ up to date?

    These kinds of agreements would work in environments where talent tends to stay put. Unfortunately, the invisible hand seems to think that job stability is a stupid, backward 20th Century concept. After all, who doesn't like looking for a new job every 2 to 6 years?? In an environment like this, even the big guys are going to have trouble holding onto employees.

    I think a much better investigation would deal with the well-publicized claims of IBM laying off senior US techs, replacing them with Indians or Brazillians, and forcing the laid off person to train the n00b to get their severance package. I'd also like to see the H-1B program users under some scrutiny for things like not paying prevailing wages, or employers intentionally not pursuing the hiring of US workers so they can get their work cheaper.

    All of these things would be less of an issue with some kind of professional standards body in the IT realm. Unfortunately, too many people I know think this is evil and doesn't allow the full brilliance of their talent to shine. I don't think that's valid...lawyers sure like the Bar Association and doctors like the AMA. These organizations give them the power to influence laws and maintain educational standards...exactly what we need.

    1. Re:Who does this apply to? by DaMattster · · Score: 4, Interesting

      I think a much better investigation would deal with the well-publicized claims of IBM laying off senior US techs, replacing them with Indians or Brazillians, and forcing the laid off person to train the n00b to get their severance package. I'd also like to see the H-1B program users under some scrutiny for things like not paying prevailing wages, or employers intentionally not pursuing the hiring of US workers so they can get their work cheaper.

      Finally I read an idea that makes a lot of sense. When there is plenty of talent in the states, why are companies offshoring jobs or importing labor via the H-1B programs. Companies get tax breaks for this kind of non-sense. Companies actually get tax breaks for eliminating American jobs! If that isn't an example of just how bad things have gotten in America, I don't know what is. And supposedly the economy is recovering - I just don't see how. It is time for a change and more laws to protect the American Worker. I might even go so far as to advocate that IT needs to unionize!

  5. Mod .sig +5 insightful by davidwr · · Score: 3, Interesting

    Your sig: "The upset over a missed deadline goes away much faster than the terrible taste of a bad product."

    Mod +5 insightful.

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    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  6. Non-compete clauses in employment contracts by presidenteloco · · Score: 3, Interesting

    That would seem to be the biggest problem for would be switchers. Essentially, their legalese translates into:
      "You must be subjected to a complete mind-wipe before going to work at one of our potential competitors, because if you use any of the specific expertise you developed while working here, you're screwed."

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    Where are we going and why are we in a handbasket?
  7. Re:Here We Go ... by erroneus · · Score: 3, Interesting

    Yeah it's not bad for the company, but it's bad for the people who would like their wages to be set by "the competitive market." This is harmful for anyone who hopes to be paid what they are worth. It harms not only employees at any company engaged in such practices, it harms everyone else who uses these large firms as a measurement by which wage expectations are set.