Engineers Allege Conspiracy by Hi-Tech Giants
- by admin
Cited: MSNBC
A class action suite filed by five software engineers against Apple, Google, and a number of other hi-tech giants has revealed some interesting correspondences by the late Steve Jobs to Google regarding his most highly skilled, and thereby, most highly sought employees; the programmers.
In a memo from Jobs to Google chief Eric Schmidt, Jobs is said to have told Schmidt to stop trying to lure an Apple engineer away from Apple and over to Google. The memo became public as part of a larger suit filed by these engineers against the high tech industry in which they charge that their wages and overall compensation packages were being manipulated lower by Apple and Google. The suit alleges that these companies, and five others, made a conscience effort to eliminate demand for their skills.
In 2010, the Justice Department found that and agreement between Apple, Google, Adobe Systems, Intel, Intuit, and Pixar to refrain from recruiting engineers and other highly skilled employees from one and other was illegal and all agreed to a settlement after the government’s ruling on the case. In a document that was part of the probe, Steve Jobs sent a memo to Eric Schmidt of Google asking that his company stop trying to hire away one of Jobs’ engineers. Schmidt replied that he would indeed and that the would find out who is making contact with the employee and put an end to it immediately. Google staffers asked to look into the matter told Schmidt that the Google employee would be terminated within the hour.
The civil suits against Apple, Google, and the rest is still in the courts with the tech companies asking a judge to throw out the case on the basis that these companies claim not to have engaged in any overarching conspiracy. However, the judge presiding over the case, U.S. District Judge Lucy Koh, said that the lawsuit could move forward.
Other evidence in the case finds that Intel also entered into agreements with their peers to keep engineers from moving to the highest bidder.
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My take:
I hope they win their case because you shouldn’t be able to put a lid on the amount that a worker can demand for his skills. The people in the front offices of these companies might want to consider taking a cut in their own pay to keep their best workers happy and on the payroll. That’s how it is done everywhere else so why should these guys be an exception. Besides, from recent reports it looks like they have more than enough capital to pay the people making their products.
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