Tech Giants Settled Antitrust Lawsuit over Hiring PracticesAdded: Sunday, April 27th, 2014
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A number of tech giants (the list includes Apple and Google) have recently agreed to settle an antitrust lawsuit which was regarded by many as exposing the dark side of Silicon Valley’s hiring practices. It was alleged that some of the industry’s biggest names colluded to avoid poaching each other’s talent.
Several companies, including Apple, Adobe, Google and Intel, were supposed to go to trial at the end of May, while lawyers for around 64,000 employees alleged that CEOs including Google’s Sergey Brin and Eric Schmidt and Apple’s Steve Jobs had been involved in an elaborate scheme in order to prevent poaching and drive down wages.
The tech giants confessed that they agreed not to hire each other’s employees in certain cases. However, they refused to admit that they conspired to drive down wages. Four years ago, a Justice Department investigation found out that some companies shared confidential salary data in order to prevent bidding wars. They also promised not to call each other’s employees. So, after the corporations settled the federal antitrust complaint, they became the target of a civil lawsuit.
The lawyers had been seeking $3 billion in damages, and the experts point out that under antitrust rules, that amount could have been tripled to $9 billion had the companies lost. The terms of the settlement are expected to be presented in the end of May to US District Judge. The attorneys claimed that it was an excellent resolution of the case that would benefit class members.
Letters from Steve Jobs and Eric Schmidt emerged in pre-trial hearings – there Schmidt told Jobs that a Google recruiter would be fired after approaching an Apple employee. In response, Steve Jobs forwarded Schmidt’s note to a top Apple HR executive, with a smiley face. Another email exchange saw Jobs telling Sergey Brin that if Google hires a “single one of those people”, that means war.
In response, attorneys of the tech giants claimed that the plaintiffs were into “free-floating character assassination” and asked that the emails be barred from entry at the trial. In the meantime, it is known that Walt Disney’s Lucasfilm and Pixar (previously headed by Jobs), along with the software company Intuit, all agreed to a settlement over similar hiring practice allegations a year ago: in result, Disney paid around $9 million and Intuit $11 million.
April 27th,2014Posted by:
Sunday, April 27th, 2014
|posted by (2014-04-27 17:29:23)|
|why does this sound so normal; not shocked - these companies will be more careful in the future not getting caught again .|
|No they won't, the reason they won't is because they are so rich they are above the law|
|If you bleed money then a small cut means nothing|
|posted by (2014-04-29 03:52:14)|
|Look for the union label....|
|This make Hulk angry at puny humans...Hulk smash!!|
|posted by (2014-04-30 13:03:36)|
|I guess I don't quite understand how this is supposed to work. Simple economics; increase supply, decrease cost. If there are only 2 people qualified to do a job because everyone else has been disqualified (because they work for the competition), they will be in a better bargaining position for salary. If say, 10 people are now qualified (because we add all the competitor employees), they all have less power to bargain up their salary. Someone will always be willing to undercut the next guy's offer just to get the job. Not sure if I agree with this idea about driving down wages.|
|Naxan: It also means that wages don't rise due to "Hey, we want that guy employed by our competitor. We'll have to offer him more than he makes now, to lure him away". And though it's not mentioned in the article, I suspect this collusion also has a blacklist element - If you push too hard for a salary rise before you get the job, or you piss one of the companies off, none of the others will hire you.|
|posted by (2014-05-02 02:17:36)|
|antitrust over hiring practices?? first time read about that! and if epic government it's part for lawsuit too and to investigate good companies hiring conducts that is going to help bud with attorney's over companies and Unions not hear employees by them self's yet. Also, if like google has not much years of seniority salaries that it where Unions and companies get imaginary mafia for get control making nut shakes for hiring practices all around. in short, fired can be for not get time for all matters of who can play without you know.|
|Like it's something new. It's all about greedy corporations making|
much money as they could. Let alone the overrated prices Apple
be selling their products for. And most of Apple fans are stupid
enough to be buying overinflated merchandise helping Apple's
corporations get rich by thinking you're "COOL" now that you've
a $4000 notebook, lol.
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