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Silicon Valley Anti-Poaching Cartel Went Beyond a Few Tech Firms

Posted by timothy on from the say-clancy-why-don't-you-drop-by-the-club dept.

The gentleman's agreement that several Silicon Valley firms are now widely known to have taken part in to minimize employee poaching within their own circles went much further than has been generally reported, according to a report at PandoDaily. The article lists many other companies besides the handful that have been previously named as taking part in the scheme to prevent recruiting, and gives some insight into what kind of (even non-tech) organizations and practices are involved.

5 of 137 comments (clear)

  1. is it illegal? by globaljustin · · Score: 5, Interesting

    Is it illegal to make these "agreements"?

    I think it's ridiculous, and like another pointed out, shows a flaw in capitalism.

    It *should* be illegal. IMHO it's an anti-trust issue. Workers are vendors of their labor, and the owners of the capital are colluding, like a 'trust', to monopolize & unnaturally control the scarcity of that capital.

    --
    Thank you Dave Raggett
    1. Re:is it illegal? by BradMajors · · Score: 3, Interesting

      * Multiple times I have had companies explicitly tell me they can't hire me because my current employer would retaliate against them.
      * A manager offered me a position, but then called me back and told me that HR told him he could not hire me because of a secret inter-company agreement, neither I nor the manager knew anything about, that prohibited him from hiring any of my employer's employees.
      * I have personally seen a company to company contract which stated that neither company will hire each other company's employees.

      These non-compete agreements between companies are well know and common, these companies have never been prosecuted, and these companies have no fear of prosecution.

  2. Re:Capitalism at its finest by Stumbles · · Score: 2, Interesting

    Yep and then try to convince us all it was the fault of capitalism.

    --
    My karma is not a Chameleon.
  3. Re:Collusion vs no solicit by Charliemopps · · Score: 4, Interesting

    The "legal" method that's fairly standard is the other way around. The temp agency places you, and you work for them. The company hiring the temp agency agrees not to hire you for a term... 6 months to 2 years depending, because the temp agency needs to recoup the cost of scouting you. Often there's a clause where the hiring company can buy their way out of it if they really want you bad or they're afraid you could just go to a 3rd party. All of this is pretty standard and legal because everyone knows what they're getting into. But, if unknown to you, every other party has made a secret agreement with the original company not to hire you, you're screwed. There's no-where to go and you're no longer dealing with a free market. You're being forced to abide by a contract that you never signed and don't even know exists.

  4. Re:Do the crime, do the time by x0ra · · Score: 1, Interesting
    I am not a religious man, but there is a few valuable quote. In this case, John 8:7:

    When they kept on questioning him, he straightened up and said to them, "Let any one of you who is without sin be the first to throw a stone at her.