Hello?
Anyone see this?
Just when you thought not poaching another company’s employees was the right thing to do – BAM!
You get blindsided by none other than the United States justice system.
All this havoc resulted from this in which the U.S. Justice Department settled in 2010 with Google, Apple, Adobe, Intel, Walt Disney’s Pixar, and Intuit for not “cold calling” one another’s employees.
In their defense, the companies argued that they “LinkedIn” mailed other company employees and contacted (by email) those they found on the Internet.
“Not good enough,” said the Justice Department.
In other words, you’re not recruiting if you’re not cold calling!
I did a slideshow that mentioned this phenomenon here.
I’m surprised it took the lawyers so long to pull this one out of their hats.
Now that it’s official and the lawsuit will move forward. it’ll be interesting to see what happens.
Joseph Saveri, a lawyer for the plaintiffs, said, “We get to see what really happened,” adding that damages in the case could amount to hundreds of millions of dollars.
Did you hear that?
Hundreds of millions of dollars.
To employees who were (are) damaged because a company decides, for one reason or another, not to “poach” another company’s employees.
Can you still afford not to phone source?
6 comments
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Rich Weiser Apr 12, 2012 at 7:37 am
Gotta love those lawyers!
Jessica MillerMerrell Apr 12, 2012 at 6:09 pm
I don’t think it’s only because of cold calling. Many of these companies had pacts not to poach their employees which is what this lawsuit is really about. Apple had agreements with companies that they would not steal their talent and it would be the agreement reciprocated. Steve Jobs was very passionate and fanatical about his talent and he used his influence to build relationships to keep his A players at his place of business. So the recruiters stopped calling and the job seekers didn’t seek out opportunities of their own rights.
Jessica
@blogging4jobs
Maureen Sharib Apr 20, 2012 at 8:31 am
Judge Refuses to Dismiss Antitrust Lawsuit Against Google and Apple http://bit.ly/I78OMC
Maureen Sharib Apr 20, 2012 at 8:49 am
Jessica, respectfully, from the Department of Justice’s OWN Settlement Announcement Release Sept 24, 2010:
In the high technology sector, there is a strong demand for employees with advanced or specialized skills, the department said. One of the principal means by which high tech companies recruit these types of employees is to solicit them directly from other companies in a process referred to as, “cold calling.” This form of competition, when unrestrained, results in better career opportunities, the department said.
Maureen Sharib Apr 20, 2012 at 8:53 am
But you’re right, Jessica, it’s not ONLY about cold calling but I suspect it’s because of the relief felt internally that this practice (cold calling another company’s employees) was forbidden (or, at least actively discouraged) that this travesty wasn’t internally challenged!
Maureen Sharib Apr 20, 2012 at 10:19 am
LA Times: Apple, Google, others to face antitrust suit over staff poaching
http://tinyurl.com/d23jyd7