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How Silicon Valley CEOs Conspired To Suppress Engineers' Wages

Oneflower writes "As we discussed last week, a lawsuit is moving forward that alleges widespread conspiracy among the CEOs of Apple, Google, Intel, Adobe, Intuit, and Pixar to suppress the wages of their tech staff. Mark Ames at Pando explains how it happened, and showcases some of the emails involving Steve Jobs and other CEOs. Quoting: 'Shortly after sealing the pact with Google, Jobs strong-armed Adobe into joining after he complained to CEO Bruce Chizen that Adobe was recruiting Apple’s employees. Chizen sheepishly responded that he thought only a small class of employees were off-limits: "I thought we agreed not to recruit any senior level employees. I would propose we keep it that way. Open to discuss. It would be good to agree." Jobs responded by threatening war: "OK, I’ll tell our recruiters they are free to approach any Adobe employee who is not a Sr. Director or VP. Am I understanding your position correctly?" Adobe’s Chizen immediately backed down.'"

17 of 462 comments (clear)

  1. Affects all engineers... by Anonymous Coward · · Score: 5, Insightful

    There's a knock-on effect... for those of us not employed at the named offenders, the salaries are suppressed. I hope they're convicted.

    1. Re:Affects all engineers... by i+kan+reed · · Score: 5, Insightful

      Absolutely, accountants uses average salary data for determining the maximum a position should pay is, meaning a group of major companies colluding hurts every single person in this field.

  2. Time for unionization in the tech sector yet? by Anonymous Coward · · Score: 5, Insightful

    You'd think, from a free-market standpoint, that collective bargaining would somewhat equalize the sale and purchase of labor.

    But nah, us engineers are too smart for that. We're all superstars and we're always looking to stab eachother in the back for a percentage.

  3. Re:So, cue up.. by Anonymous Coward · · Score: 5, Insightful

    Collusion, by definition, is not a free market.

    When you think of a model of the "free market", think of hundreds or thousands of small merchants gathered in a town square hawking their goods, with many of them selling similar items.

    CAPTCHA: "parent is an idiot"

  4. see also, increasing the # of H1Bs awarded by Anonymous Coward · · Score: 5, Informative

    If only the tech workers of the world had a touch more self and class-consciousness, they'd be able to see that, often, management is actively working against their interests. From wage-manipulation & collusion, to selling sitting cheek-to-jowl with coworkers as "open" and "collaborative," there's enough to give even a naïve, "everything is awesome!!!," workaday programmer pause.

  5. Steven Jobs by quax · · Score: 5, Insightful

    He always had the reputation of being a visionary and major league a**hole. I guess he's dead long enough now that we can acknowledge the latter again?

  6. Re:So, cue up.. by RabidReindeer · · Score: 5, Insightful

    OK. I am actually a free market libertarian software engineer. This does bother me, but I would suggest that the solution to these sorts of problems is exposure rather than laws. I don't feel that my ability to market my skills is significantly affected. I don't need to work for any company that would underpay me. Even though these are big companies, the percentage of software engineers they hire is a small percentage of the total.

    As far as examples of negative aspects of the free market go, this is pretty mild.

    I would suggest that a free market approach would be to go one step further and have shareholders conspire to limit CEO salaries. Those cut into corporate profits as well.

    Lots of luck.

    A Corporation is NOT a one-person-per-vote democracy. It is one-SHARE-per-vote.

    And guess who owns the majority of the shares in most corporations?

  7. Re:How does this keep salaries down? by Anonymous Coward · · Score: 5, Funny

    Yes..... Because all smaller shops are given money trees they can harvest infinite yields from when they form their articles of organization for their company/corporation.

  8. Not Unique to Silicon Valley by Anonymous Coward · · Score: 5, Interesting

    As a Technical Director (read: Guy in charge of a group of programmers), I know our company had similar agreements with other programming studios and technical firms in the geographical area we were located in. I learned of it by a slip of the tongue by our HR Director during a meeting.

    I responded along the lines of "Well, if we would pay our programmers what they're worth after 3 years, instead of insisting on keeping them at Junior programmer rates, then we don't have a problem, and shouldn't need special back room deals to keep our talent". I unfortunately did not have the final say in pay increases, and did lose some of my staff to better payment offers. It was all I could do to compensate with treating the team with the highest levels of respect to keep them around due to shitty pay.

    This was happening in Canada for context.

  9. Re:So, cue up.. by Anonymous Coward · · Score: 5, Insightful

    You're funny.

    Only laws will prevent this from happening. Perceptions can be swayed by gradually introducing change and exposure and by gradually "normalizing" this obviously criminal activity. Exposure is not effective, it can be managed with enough positive spin. Only laws with strong deterients are effective.

    You say about Apple, Google, Intel, etc. "the percentage of software engineers they hire is a small percentage..." I don't think you know what those companies do.

  10. Re:So, cue up.. by hey! · · Score: 5, Insightful

    Collusion, by definition, is not a free market.

    ...And since collusion is natural behavior in situations like this for company managers, it follows that in order for a market to be free, the behavior of its participants must be regulated.

    Which, seriously speaking, is a rather interesting point.

    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  11. Re:So, cue up.. by jythie · · Score: 5, Insightful

    Well, no. That is why we do not have a free market, pure free markets require a very idealized society where all sorts of things that states and regulation take care of simply do not exist, and thus are not very resilient when having to deal with other parts of the system. It is kinda like communism or anarchism... it would work great if humans were, well, not humans, and some magical force prevented defacto forces influencing things.

  12. Re:re. Affects all engineers... by Calydor · · Score: 5, Funny

    He won't.

    Someone is gonna jailbreak him after a day or two.

    --
    -=This sig has nothing to do with my comment. Move along now=-
  13. Re:So, cue up.. by ebno-10db · · Score: 5, Insightful

    Which, seriously speaking, is a rather interesting point.

    And one which many ideologues try very hard not to understand. "Free market" is more of a slogan than a clearly defined idea. I prefer the term "competitive market" to emphasize what's really important.

  14. Re:So, cue up.. by porges · · Score: 5, Insightful

    The "exposure" is not going to come from a few or even many Engineers complaining in isolation that there might be some collusion going on as the alternative offers are drying up.

    The exposure doesn't need to come from engineers. It can come from anyone who knows about it.

    The only reason we know about it at all is because there was a lawsuit filed accusing them of this illegal action. If it becomes totally legal, nobody's going to be filing that lawsuit in the first place, and the parties involved will continue to do it secretly.

  15. Re:So, cue up.. by Firethorn · · Score: 5, Insightful

    You know, I think I'm going to start using 'competitive market' instead of 'free market'? In areas where competition is impractical, such as water/electricity to the house, I prefer that the provider be a cooperative. Otherwise most of the regulation methodologies I support are designed to increase competition.

    --
    I don't read AC A human right
  16. Re:So, cue up.. by lgw · · Score: 5, Insightful

    Could you say that again, except coherently this time?

    Libertarianism is an attempt to solve the problem of providing safety and basic social order with the minimum possible government that gets the job done. It's an optimization exercise. There's very little agreement on what that looks like, exactly, but widespread agreement that fraud prevention and contact enforcement (and some sort of criminal justice system) are part of it.

    Anarchism is the claim that we can have safety and basic social order with no central leadership at all (anarchy means "no leader", not "no laws"). I view this like Marxist communism: cool idea, wrong species.

    --
    Socialism: a lie told by totalitarians and believed by fools.