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

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.

Comments

Do the crime, do the time

[Herkum01]

So, can look forward to anyone doing jail time? That is the really the only way this will stop. That or directly start suing the individuals who implemented the policies and make them pay. After that I am willing to bet once a few executives lose their hard won millions will be a little gun shy about conspiring to do anything.

Actually the more I think about it, the best way to reign these practices in is directly suing individuals. Once they can no longer hide behind the corporate veil, the less inclined they will be collude together.

Re:Do the crime, do the time

[geek]

The executives essentially formed their own union. The gentlemen's agreement (which is anything but. A crony capitalists agreement is a better name for it) is simply their by-laws.

To counter this, every tech worker in the entire valley should form their own union and stick it to the fucking executives for a change. I moved from the valley 15 years ago because of shit like this. I'll never return but would love to see these mother fuckers get what is coming to them.

is it illegal?

[globaljustin]

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.

Re:is it illegal?

[mikael]

Making employees sign Non-Compete Agreements are illegal in California. But by preventing employees from moving around freely, that could have restricted them from getting pay rises and consequently depriving the state and federal government from getting income taxes.

Re: Collusion vs no solicit

[Anonymous Coward]

Not in California it isn't, same with non completes. Edwards decision killed non-solicits. You want capitalism then have captialism and make sure you pay your employees well.

http://www.hrthatworksblog.com/2013/01/30/the-difficulty-of-enforcing-non-solicitation-clauses-in-california/

Re:Collusion vs no solicit

[Charliemopps]

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.

I wish I were oppressed

[LordNimon]

Apparently, none of the companies I've ever worked for were on that list, because I'm hounded by clueless recruiters every week.

Re:Capitalism at its finest

[ObsessiveMathsFreak]

Capitalism is whatever rehtorically useful construct I define it to be. For example, today, capitalism is a system for distracting me from my overloaded inbox to post on Slashdot. Capitalism is the oppressive system that prevents me from sleeping in on the weekends.

What's your Capitalism today?