Judge Rejects $324.5 Million Settlement For Tech Workers, Argues For More
An anonymous reader writes with this news from Reuters: A U.S. district judge on Friday ruled that the $324.5 million settlement negotiated by Apple, Google, Intel, and Adobe with the tech workers who brought an antitrust lawsuit against them was too low. The judge cited the settlement amount of a similar lawsuit brought against Disney and Intuit last year which resulted in plaintiffs obtaining proportionally more for lost wages. And yet, according to the judge, the current plaintiffs have "much more leverage". She cited evidence clearly showing Apple's Steve Jobs strong-arming the other companies in the suit into agreeing to a no-employee-poaching agreement, and in one instance, of Google failing to rope in Facebook into a similar agreement which resulted in a 10% increase of all Google employee salaries. In other words, clear evidence that the no-poaching agreement effectively suppressed the salaries of these companies' tech workers. Another hearing is scheduled for September 10.
New talents will be nigh impossible to develop from scratch because it's the same guys who shifts between the big firms. Is it really so hard to develop talent who isn't currently working for those firms?
how could these companies say with a straight face that they only want more H1B visa employees due to lack worker shortage and not because they're trying to find cheaper labor?
Did anyone ever REALLY believe that?
I got a good deal on a bridge for you. It's between Manhattan and Brooklyn.
I got a good deal on a bridge for you. It's between Manhattan and Brooklyn.
They are not interested. They already built a bridge between Mountain View and Cupertino!
I'm much more funny, interesting and insightful than the moderators think
Semantics. Worker shortage = higher labor costs. They are one and the same. It's all PR.
Settlement? What settlement? This is a prima facie Clayton Act Anti-Trust violation. Multiple felonies, with jailtime due. Amazingly, this appearently exists on paper, so everyone who negotiated or signed it should go to jail.
The Clayton Act makes organizing supplier boycotts a prohibited activity. And that's just what they have done -- organized a boycott not to hire an employee, times the collective number.
That this has not gone to a Federal Grand Jury appears more like corruption than anything else.
Damn right it's too low! .. just go through top admin, and ALL boards of Directors, and take a vote for each manager, and nail there testicles or pussylips to boards and hall them up in the air .. .. they will pay attention if you spray when their eye's move away..
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Those bastards need to spend time behind f.ing bars, when you consider the pain ans suffering, moving, family brake-ups and suicides this kind of shit ends up doing to people, mostly men.
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F.ing Tech companies of this size
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and let those that suffered, or anyone in the tech industry a bottle of salt water they can use to clean these people's wounds as they hang.. and tell them how it made you feel, to live with too little money
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Thank them one for me!
Surely illegally keeping employee wages down impacted the whole industry's wages?
How was it a boycott if the engineers in question still had jobs?
...rich people don't get jail time for this sort of thing. Of course they should, but they don't, and they never will.
It isn't just. But it is how the world works. The wealthy class is held to a different set of laws than the rest of us.
This should not be surprising to you.
and now we just use H-1B they don't complain about there pay or hours they don't even want to rock the boat as if they get fired they have to get out of the usa right way.
It's time for an union in IT RIGHT NOW.
Colluded to pay workers less, make books more expensive (in both cases it seems to have been mostly his idea), convinced idiot consumers to prefer (and pay) form over function... And yet so many people praise him...
Kinda mixed feelings! On one hand, hey I'll get money from it, so cool. On the other, Americans are already VERY expensive to employ compared to equally qualified engineers from many other countries, and it's a globally competitive market. Why employ an American if you can get 4 non-Americans who went to the same universities for the price?
So already US salaries are too high, and this isn't going to help make the US more competitive among major world STEM powers.
Settlement? What settlement? This is a prima facie Clayton Act Anti-Trust violation. Multiple felonies, with jailtime due. Amazingly, this appearently exists on paper, so everyone who negotiated or signed it should go to jail.
The Clayton Act makes organizing supplier boycotts a prohibited activity. And that's just what they have done -- organized a boycott not to hire an employee, times the collective number.
That this has not gone to a Federal Grand Jury appears more like corruption than anything else.
Did you ever look at how much money those companies donat to a certain political party and its candidates?
Apple.
Google
Do you really think Eric Holder's politicized Justice Department is going to go after Google and Apple?!?!
BWAAA HAA HAA
They're too busy screaming "RAAAACIST!!!!" at any state that tries to enforce voter eligibility, despite absolutely no evidence that requiring a valid ID depresses minority turnout (which is why a US judge just bitch-slapped the DoJ in North Carolina just today...)
The Clayton Act only applies when someone applies it. If you were wronged by these people, bring suit under the Clayton Act and have at them.
Unfortunately, if you're just a bystander, or the statute of limitations has run out, or you have accepted other settlement in the matter, you can't.
Don't buy it or even visit because mycleanpc.com is a virus.
I agree with that judge $324 is not enough, he should add some prison time because they deserve it.
The Clayton Act is unconstitutional, and is also nullified by the free trade treaties in place.
Nope, freedom shouldn't be stolen. It can, however, be exchanged.
That's why government has obligation unto you, and to others.
To provide a value for the exchange of parts of your freedom.
Don't like it? Well, that's why the government has an obligation to provide you with mechanisms for you to work for change.
Just don't pretend you have absolute power over government, that would be stealing from the rest of us.
Some of those with jobs might have tried to leave! Most likely to escape poor supervisors.
Do you mean to say Standard Oil and AT&T did not donate enough? Methinks they would have.
Unions aren't the same a secret collusion between competitors. A better comparison would be a secret union of all tech workers that required that none of its employees take work with Apple until they raised their entry level salaries for engineers to 500k per year out of desperation. Also, unions are manipulating the invisible hand of the market, but they only exist as a result of the power that currently lies in the hands of capitol. If capitol hadn't collectively acted in a selfish and greedy fashion for the previous thousand years or so, unions would have never been formed. You could say that they are consequence of the invisible hand, but that is sort of a cop out, since any behavior related to the market (up to and including regulation) is a consequence of the market. Gotta love feedback loops.
HA! I just wasted some of your bandwidth with a frivolous sig!
(y)
Settlement? What settlement? This is a prima facie Clayton Act Anti-Trust violation. Multiple felonies, with jailtime due. Amazingly, this appearently exists on paper, so everyone who negotiated or signed it should go to jail.
The Clayton Act makes organizing supplier boycotts a prohibited activity. And that's just what they have done -- organized a boycott not to hire an employee, times the collective number.
That this has not gone to a Federal Grand Jury appears more like corruption than anything else.
By that argument, everyone in a union belongs in jail, too.
That this has not gone to a Federal Grand Jury appears more like corruption than anything else.
You're just noticing that there is corruption that goes on in favor of big business with impunity in the US? What are you, a fucking Republican?
Look where all this talking got us, baby.
Does it matter? Corporations decide what is legal or not. What a judge says is overturned by a higher instance if enough money is poured into the case. Apple could easily execute a few hundred of its employees and get away with it.
> It's not about who is dispensable or not, companies do not exist to hire people ...
For many years I worked for a corporation that was set up primarily for the purpose of hiring people and taking care of those employees. For the last 12 months, the company has been losing money by continuing to provide health insurance and such for employees who work fewer than 12 hours per month.
You may think that's incredibly unusual, but actually it's not because many, possibly most, corporations are set up for the purpose of hiring a very small number of people, most notably the owners. There have been many times over the last 20 years when I, as the sole shareholder, have needed to choose between making more money or doing more good for the employees and customers. I decided that money is a means to an end. The PURPOSE if making more money would be in order to better take care of the people I care about. I'd like more money because it would allow me to send my daughter to a better school. I'd like more money because it would allow me to give more to my employees and other friends. I'd like more money because it would allow me to give more to organizations such as United Way and the Crisis Pregnancy Center. Choosing between being good to people or making more money, I choose doing good because after all the whole point of more money would be to do good with it. Choosing more money would be putting the means ahead of the ends.
Here is an idea, force them to give retroactive double back pay to every tech worker who was in the company from the beginning of the conspiracy to today. That would teach them a lesson about suppressing wages. Namely don't collude unless you want to have to pay double what you tried to keep down.
Seems like I would rather get the $9 billion. $324 million / 60,000 is around $5,400 per worker and that's before the lawyers get their cut.
stfu about unions you cunt
Can somebody please contact his ISP? I can only hope /. has an Abuse department. When an admin contacted us concerning one of our users, we would warn/cut/close the account
I've got better things to do tonight than die.
While I completely agree and feel a handful of people should get locked up for this, I'm no longer shocked to see laws and punishments not being applied fairly to corporations. It wasn't long ago we saw a company get away with killing three hundred people.
Flaimbait != disagree.
There is no disagree mod for a very good reason.
they exist to make products / provide services that allow the owners to make money,
No, that's not strictly speaking correct. I'm assuming you're referring to limited liability entities (LLEs). LLEs exist for the sole purpose of protecting the owner's personal assetsso that they can operate the company without personal risk.
Many of these are set up to make a profit (as are some non LLEs, like sole traders and partnerships), but by no means all of them are.
the whole point of business is to generate profit,
For profit making entities, then yes, the point is generally to make profit, for the owner. However, these are being granted special legal protections (limitation of liability). Why?
We do that for the greater good. We collectively appear to believe that profit motivates people, so providing a mechanism for companies to operate somewhat freely (i.e. with limited liability) is of net benefit to society. That's because they want to make a profit and they do that by doing useful things. On the whole.
But make no mistake: the point of limited liability companies is not profit, it's for the overall benefit of society. If that link is broken, then there is no reason for them to be given such protections. Of course, the owners are still free to pursue profit as they see fit, but why should they also have the right to do it without personal risk?
In other words, an indicidual might make a company to make a profit, but the reason LLEs exist at all is for the greater good, not for profit.
The problem in USA is not that Google and Apple had agreements not to hire from each other,
No that was a problem. Google and Apple are given amazing protections by law (limited liability), far more than exist in any naturalistic sense. It is entirely reasonable for them to also be constrained while they make use of these protections. In that way the law is completely reasonable and just and they broke it. What they did is plainly unethical.
it's that there are so few employers at all, and that's a problem of business costs being too high thanks to government rules, taxes, regulations, litigation costs, inflation etc.
They're not though.b You can set up a little contractor business with just you as an employee pretty easily. You can do it yourself if you feel like or if, like me that stuff turns your brain to mush, you can save hassle and pay someone else to do it. The overall costs are not that high.
The main problem is that businesses have been granted unnatural rights (limitation of liability) but are not keeping to the responsibilities that those rights must require. If anything more regulation is required to keep them in line.
SJW n. One who posts facts.
Well you can make up your own definitions of words if you want to, I guess.
My "hobby", as you call it, has brought in over a million dollars. That million has been used according to the company's mission statement.
You know, people actually write down the purpose of the company when they create it. It's called a "mission statement". You might read some sometime. I've yet to see one that says "make money". I have seen a few companies where the people apparently FORGOT their mission, forgot the reason the company was started, and started focusing on money instead. That's why you put the mission statement in prominent places - posted on the wall, on banners, etc - to remind people of why you're there lest they forget.
By that argument, everyone in a union belongs in jail, too.
Strikes are not boycotts. You don't buy labor, you hire it. HTH, HAND.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
As for Detroit - are you kidding? GM and Ford have to deal with far more militant unions overseas in place where they are doing a lot better than in Detroit. Considering trust fund babies like Edsel Ford as the model instead of Henry Ford was what killed Detroit. If you populate management of a large corporation with almost nothing but the members of a single college tennis club you end up with something so inbred with so little talent that failure is inevitable. Detroit is not an example of a failure of unions, capitalism or any ideology - it's the result of decades of nepotism and mismanagement.
Also we get into the really stupid bit with blaming unions. If management is unable to get it's shit together and deal with problems related to unions in an environment with very low union membership and very high unemployment then why is it seen as the fault of unions and not as mismanagement?
I've never been in a union but I've managed to notice these things. Why haven't you?
Charming. Especially with your "little fools elsewhere in the world that think they know everything about everywhere".
Somebody please mod the GP poster up so readers can see more than Karmashock's knee-jerk reaction to an informative post.
Those who tried to leave probably succeeded. Can you cite to a single case where this anti-poaching agreement prevented an active searcher from getting a job offer?
A better comparison would be a secret union of all tech workers that required that none of its employees take work with Apple until they raised their entry level salaries for engineers to 500k per year out of desperation.
Ignoring the secret part... Isn't that the definition of a strike? People refusing work until the hiring company caves to work policies or salaries?
We recently had an issue where a union state and a right to work state built a bridge across a river to each other. The union state mandated that all contractors be union shops. The "right to work" state demanded that non union shops be allowed because of the cost difference. (There is also a slight cost of living difference between the two states aligned with the wage differences) I don't remember how it got worked out but construction was delayed for months.
Probably easy to find for the DoJ. Ask jobchangers. But not necessary. Anti-Trust law is highly unusual -- the govt does not need to prove harm, and it is much closer to "guilty until proven innocent". Just ask the oilcos.
Yeah, I figured you had nothing.
Standard Oil and Ma Bell were broken up because they exploited monopoly power. There's nothing remotely similar for tech employers. You claimed there was some kind of supplier boycott, I pointed out that there obviously wasn't one in the usual sense, and you fell back to "maybe this kind of harm happened, you can't prove it didn't!"
Making more money in and of itself isn't a problem. Money is just a representation of productivity. The more productive you are for a given cost (relative to your competitors), the more money you'll make. By that token, it's in society's best interest for everyone to try to make as much money as they can. i.e. It's good to want to make more money (in a productive manner - scamming or skimming doesn't contribute any productivity). Whether you do so with a hobby or a job is irrelevant - the fact that you're making money means you're doing something productive which someone else values and is willing to pay for. (I think the AC was trying to distinguish between non-productive "hobbies" and productive "work". But what distinguishes those is productivity, not how well the employees are compensated.)
The problem comes about with how that money is distributed within a company. The owners/high-level executives have too much control over the process of wage/bonus distribution. It's like passing around a bag with money (profits), and the owners/executives get to pull as much out as they want first. Not enough is left over by the time you get to bonuses and salary increases for regular employees.
I don't know a good solution to this problem. It's one of the reasons I'm not opposed to unions despite my fiscally conservative beliefs (as long you don't make the union a monopoly, which just creates different problems). The taboo against telling others how much you make helps contribute to it though (not all countries have this taboo). Maybe if you required companies to post annual salary/bonus stats with the names redacted out? That would give individual employees a better idea where they stand, and if they should be demanding higher wages because they know they're one of the better employees but they see they're near the bottom of the pay scale. Giving regular employees stock options helps too, though I always felt the rules regarding exercising those options and what happens when you leave the company were too complex and arbitrary.
I always analyzed bonus distribution for my employees as a pie chart, so I could see which fraction of bonuses were going to managers, salaried employees, hourly employees, etc. The idea was to try to make sure the ratios of the bonuses in the pie chart were pretty close to the ratio of wages (which is also a general measure of productivity). That way it'd be pretty obvious if I or the managers were taking too much money out of the bag first, and grabbing a disproportionate share of the bonuses. (Actually I tried to bias it the other way - with non-managers getting a greater share of the bonus than the managers, who were already pretty well-paid.)
I felt the need to re-arrange a bit so the most severe issues are first.
The problem in USA is not that Google and Apple had agreements not to hire from each other, it's that there are so few employers at all, and that's a problem of business costs being too high thanks to government rules, taxes, regulations, litigation costs, inflation etc.
Wrong, absolutely wrong. Companies colluding to reduce employee wages is illegal and a problem. Hence the ruling and pending judgement to both reward people shafted by these illegal arrangements and punish the companies for using them.
Have you ever interviewed for either Google or Apple? I have, and their built in exclusion process ensures that they can hire only who they want when they want. If they want to save money they hire nobody local, and then claim that they need more H1B workers.
I don't take issue with the ability of a company to exclude people based on a lack of experience or knowledge, but that's not the criteria these companies are using to make exclusions. Google for example demands that you spend about a week studying various "trick questions" for their interview process. Your first phone interview will provide you a list of things to study, none of which have to pertain to the job you are interviewing for.
"trick questions" which does not test your real knowledge. It is however a great test to determine who will provide free labor without complaints.
Hiring employees becomes necessary when there is more work that can be done, where the cost of hired labour is lower than the value produced by that labour.
That part you have correct, but then it all goes downhill.
If you make labour cost too high, less of it will be bought, because the value produced by that labour may not be enough to cover the cost and to make some profit, and the whole point of business is to generate profit, otherwise it's not a business but a hobby.
Great, but why are you limiting your point on labor to only the worker bees? A CEO should make 145 million dollars a year while a worker bee makes 40K and is told they are overpaid? A manager can make a 1 million dollar bonus by eliminating 5 minimum wage employees and replacing them with 5 people making .60 an hour in a foreign country? Events similar to these happen frequently in the US. Do the math, how does this add up?
Look, I agree that the welfare state is a huge problem. That last paragraph has nothing to do with the welfare state, it has to deal with deregulation and incentives in the system to fuck people over so that you can make big bucks. Even to the point where a board will fire a CEO of a profitable company for not fucking his employees.
-The wise argue that there are few absolutes, the fool argues that there are no probabilities.
The lawyers are going to make a yacht-load of money off of this. Will the actual plaintiffs get anything or will they get coupons for discounts on cellphone cases?
How about you address at least ONE of the points in the AC's post instead of going off into the far side of crazy and snide comments about "You could all be hoping around on Kangaroos for all I know"?
That way we'd have some idea of what is going on instead of seeing one side of a conversation between you and a strawman inside your own head.
Sounds like you need a better one. We've been very pleased with Blue Cross / Blue Shield of Texas for insurance and Scott and White for healthcare.
Obviously there are things that need to be improved with the entire systems of a) health insurance and especially b) health care. Given the available options (worldwide), this combination is hard to beat. If you happen to be in Texas and aren't happy with what you're getting, they are worth a look. If you aren't in Texas, and all of the options in your state suck, I'd be curious to know what causes the difference.
> The owners/high-level executives have too much control over the process of wage/bonus distribution. It's like passing around a bag with money (profits), and the owners/executives get to pull as much out as they want first.
You know of course that companies frequently lose money in one quarter or one year, and make money another year. So owners may or may not get ANY money this year. Employees get paid every month, precisely the amount they expect. That's because the money bag goes in the opposite direction. First, production employees get paid (payroll). Executives get a portion of their pay. If there's money left, executives get their bonus, which is the other half of their pay. If there's still money left, investments are made to prepare the company for the future. If there's STILL money left, owners get some, in the form of dividends. Dividends (owner's) are, by law, the very last thing that gets paid.
Every MNC is a Pyramid scheme in Globalization
Casteism
$16billion - Aug 2014 BofA (BAC) for mortgage fraud perpetrated by forced acquisitions (Merrill Lynch and Country-Wide) Annual income $7billion
$8.9billion - Jul 2014 BNP for breaching US Sanctions in Iran, Sudan,... Annual income for BNP $6.4billion
$7billion - Jul 2014 Citigroup for mortgage fraud. Annual income $9billion
$1.6billion - Jun 2014 Credit Suisse for helping US citizens cheat on taxes
$2.3billion - USG, Chase, Citigroup for LIBOR cartel
$13billion - Oct 2013 JPMorgan Chase for mortgage fraud and market manipulation Annual Income $15billion
$1.9billion - Dec 2012 HSBC for money laundering
$1.5billion - Dec 2012 UBS for one count of wire fraud
Surely human ingenuity will devise new ways to abuse power to keep the greed tax flowing.
If not, the fading from memory of one year of lost profits will provide for repeat performances every eight to twelve years.
If you don't think there is a shortage of software developers in the US, why are developers in the US paid so much more than ones in Europe?
Also, there is no hard threshold to define an "actual" shortage when you're talking about such a large job market.
Curiously, European employers (in Germany in particular) are complaining about a "shortage" too and have lobbied with some success for easier immigration of qualified workers. It looks quite similar to the discussion and critique about H-1B workers in the USA, see also http://en.wikipedia.org/wiki/H-1B_visa#Criticisms_of_the_program.
Personally, I think a "shortage" can best be detected from the development of wages, relative to other fields where the necessary education is similarly difficult and time consuming. For instance, does the average engineer earn significantly more than the average M.D., lawyer or business manager?
For Germany, AFAIK the answer is "no" and the complaints about a "shortage" are mostly propaganda. I'm not as familiar with the US labor market but the anecdotical evidence I pick up here and there tends to say "no" as well.
C - the footgun of programming languages