Google, Apple Settle Justice Dept. Hiring Probe

Ponca City, We Love You writes "The LA Times reports that under a proposed settlement with the Justice Department, six major Silicon Valley firms — Google, Apple, Intel, Adobe, Intuit and Pixar — would be barred from pledging not to 'cold call' one another's employees. Federal officials have been scrutinizing such agreements for more than a year, concerned that they restrained competition for skilled workers and kept an artificial cap on wages by avoiding expensive bidding wars. If the court fight had proceeded, it could have helped decide the legality of such accords, not just in the high-tech sector but across all industries. But the fight had risks for each side. To win, the Justice Department would have had to convince a court that workers had suffered significant harm. A loss for the companies would have opened the door to a rush of lawsuits."

Comments

Do no Evil?

[mfh]

Google is probably in the worst position for this to come out because it's yet another example of how bad that company has become.

Does anyone have a good suggestion for an email provider and a search engine now?

It's like Google has become what Yahoo was back in the day.

Re:Do no Evil?

[Anonymous Coward]

I work for Google.

In what way is this bad? I haven't understood exactly what all this hulabaloo has been about? I see people both leaving to and arriving from some of those companies quite often.

So, what's the ruckus about?

Re:Do no Evil?

[Anonymous Coward]

Federal officials have been scrutinizing such agreements for more than a year, concerned that they restrained competition for skilled workers and kept an artificial cap on wages by avoiding expensive bidding wars. For example, Apple placed Google on its "do not call" list, which instructed employees not to directly cold-call Google's employees. Similarly, Google listed Apple among the companies with which it had special agreements not to solicit, the Justice Department said. These agreements were "actively managed" by senior executives, it added.

Cartel: A group of businesses or nations that collude to limit competition within an industry or market;

This is collusion to artificially reduce demand for Skilled Labor in these sectors therefore suppressing the wages of said Skilled Labor, also, take note it's just cold calling which still means the scenario you put forth can still occur but stopping cold calling is still artificially reducing demand which is made worse when the companies are often competitors in different sectors.

Chris O'Brien summed it up best:

[ThisIsForReal]

How dumb was this ill-conceived and poorly executed conspiracy? Let us count the ways.

1. There is no way that potential savings from these ridiculous schemes could have warranted the risks. Just how much money are we talking about saving by not losing a few important employees? Thousands? Chump change. Dumb.

2. Whatever the costs, we're talking about multinational corporations with billions of dollars in the bank. Really, they couldn't dip into those rainy day funds to counter a few offers? It's not just miserly. It's dumb.

3. We knew Apple was a bully. Turns out, it is an even bigger bully than we realized. According to the complaint: "Apple requested an agreement from Adobe to refrain from cold-calling each other's employees. Faced with the likelihood that refusing would result in retaliation and significant competition for its employees, Adobe agreed." Pissing off a key ally? 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.

7. Under this settlement, the Justice Department gets to check up on the companies just about whenever it pleases. Thought the federal government was interfering too much before? Well, congratulations. It will get worse. Dumb.

8. Did they really not think this would come to light? Dumb. Dumb. Dumb.

Original Source