<![CDATA[Gawker: valleywag, labor]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, labor]]> http://gawker.com/tag/valleywag/labor http://gawker.com/tag/valleywag/labor <![CDATA[How Palm Faced Down a Tyrannical Control Freak]]> Some extraordinary communications have leaked to Bloomberg, showing Steve Jobs threatening his counterpart at Palm. It seems the Apple CEO — and supposed empowerer of creative workers everywhere — wanted to keep his workers locked down like so much chattel.

It's not entirely surprising that Jobs wanted to strip his employees of their right to seek market wages; for all his talk of disruptive nonconformity, he has a notoriously nasty and authoritarian management style. And he reportedly had a similar "no poaching" deal in place with Google. What is eye-opening about Bloomberg's report is the frank manner in which then-Palm CEO Ed Colligan pushed back:

"Your proposal that we agree that neither company will hire the other's employees, regardless of the individual's desires, is not only wrong, it is likely illegal," Colligan said to Jobs, 54, according to the communications.

Palm had just hired iPod executive Jon Rubinstein away from Apple and surely knew it would soon embark on an epic Apple hiring spree; Rubinstein's blunt response was no doubt intended to be part of a library of evidence of Apple's behavior, should one ever be needed. But Jobs was not cowed. According to Bloomberg, he stated that "Apple had patents and more money than Palm if the companies ended up in a legal fight."

Who leaked these "communications" — emails, presumably — to Bloomberg? The obvious bet is Palm, which has been engaged in a back-and-forth war with Apple to allow its Palm Pre mobile device, which competes with Apple's iPhone, to sync with Apple's iTunes software. Apple's attempts to stop such syncing have been the object of deserved ridicule online, and Jobs' threatening message to Palm might have been leaked to drum up further outrage and put more pressure on Apple to open its platform .

There's also a chance someone involved with the Justice Department's ongoing investigation into Silicon Valley hiring is the source of the leak. That probe involves not only Apple but Google and Yahoo, as well, according to a Washington Post report.

Whatever the source of the information, the bottom line for Apple is that it faces a mounting perception that it is a bully, between this, the Palm Pre issue and the two federal investigations into ties between Google and Apple, to say nothing of its exclusionary policies concerning the iPhone app store. That's not going to dent, say, iPhone sales anytime soon. But it's going to hurt Apple's ability to pose as the Valley's corporate iconoclast, which will have a real, if intangible, effect on the company long-term.

[via Business Insider]

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<![CDATA[Workers of the World, Cast Off the Yoke of iPhone-ism!]]> T-Mobile and CB Richard Ellis were sued by employees for requiring, but not paying wages for, after-hours communication via smartphones. Past court decisions, involving pagers, have hinged on employees' ability to engage in "personal pursuits."

That's probably why ABC News last year agreed to pay wages for BlackBerry time during big breaking news events. But fights involving smartphones and wages are growing, the Wall Street Journal reports, as the devices spread. At least, they are among companies that can afford highfalutin' text-based mobile communication, during a recession. Not all can!

[via Business Insider]

(Pic: Eric Havir)

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<![CDATA[Email Details Secret Google-Apple Deal on Employees]]> The image associated with this post is best viewed using a browser.Silicon Valley businessmen fancy themselves unflinching hard-core capitalists. Yet they hate to compete for workers — and the New York Times found an email to prove it.

The Justice Department is investigating whether large tech companies illegally conspired over employee poaching. It's an open secret in the Valley that tech companies have agreements not to actively recruit one another's workers; Kleiner Perkins partner Randy Komisar called these "gentlemen's understanding[s]" in the New York Times today. It appears the Justice Department may have finally decided to make an issue of the practice on antitrust grounds.

If that's the case, some of the largest tech companies are at risk. The Times quoted a former Google recruiter saying the company distributes a list of companies whose workers cannot be approached. Then there's the email:

A December 2007 e-mail message written by a Google recruiter and obtained by The New York Times suggests that the company might have had an agreement with Apple on recruiting.

Laura Sheppard, a contract recruiter at Google, sent the e-mail message to a job candidate asking him to put her in touch with another potential candidate. "It is a bit touchy since he works for Apple," Ms. Sheppard wrote, adding that Google had "a nonsolicit agreement with them."

Google declined to comment on its hiring practices or on the e-mail message, whose authenticity could not be independently verified.

There you have it: When it comes to immigration controls or the taxation of stock options, tech honchos are all about the free market. But when it comes to the sort of competition that most benefits your average Silicon Valley worker — competitive hiring — suddenly they turn into feudal lords. Is that really so "gentleman"ly?

[Times]

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<![CDATA[Were Valley Immigrants Traded Like Property? Feds Wonder]]> The image associated with this post is best viewed using a browser.Tech giants have long sought more work visas, saying they enrich immigrants. But a reported Justice Department investigation raises the possibility Google, Apple and Yahoo, among others, colluded to hold down wages.

The Washington Post's anonymous sources said the Feds are investigating whether the firms illegally negotiated "the recruiting and hiring of one another's employees," in violation of antitrust law.

Silicon Valley companies have been known to compete fiercely for top talent, including immigrant engineers. When Google hired computer scientist and former Carnegie Mellon professor Kai-Fu Lee away from Microsoft, Microsoft CEO Steve Ballmer was famously said to have thrown a chair across the room in anger.

The upshot of competition for immigrant workers is higher wages. Free marketeers who advocate for more H1-B worker visas, like the American Enterprise Institute, should know that better than anyone.

Logically, then, if tech companies suppressed competition for H1-B visa holders, they were retarding immigrant income growth. By treating workers like so much property, they would have inhibited the very prosperity they claim to support.

Tech companies wouldn't talk to the Post about the investigation. But they should reverse that chance as soon as they can: The Valley's image as a center of immigrant wealth and opportunity is among its strongest political assets.

(Pic via)

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<![CDATA[National economy offers more disincentives to breed]]> This year, healthcare costs are set to rise nearly six percent, again, and guess who will pay the expense? Employees, not employers. You will be allowed to choose between paying more to insurance companies for the same deductible or the same amount but with a higher potential emergency outlay. [AP] (Photo by Vick the Viking)

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<![CDATA[Microsoft's current pay rates for H-1B workers]]> Operating-system monopolist Microsoft maintains a campus and a number of satellite offices here in the Valley, and competes voraciously with other local companies for talent from around the world. So what, exactly, do they pay foreign workers? One of the ways the company makes good on regulatory promises is by posting job listings internally. It's part of the government's PERM process to certify immigrants for H-1B and permanent-residency eligibility; companies must first show that they tried and failed to find local workers for the job. The listings provide a peek into the current going rate for different positions, from technical writer to program manager.

  • Program Manager: $86,000
  • Tester: $95,000
  • Developer: $110,000
  • Developer: $117,000
  • Technical Writer: $129,000

What's interesting is that the base, industry-average salary figure used by immigration officials hovered around $85,000 in all cases. Which should give you an idea of the relative worth of each position in today's job market. What surprised me is that Microsoft feels it has to import this talent. I can name experienced professionals fitting each job description who'd be happy to work for those wages, with or without the paltry equity Microsoft offers these days.

Then again, maybe they know better than to join Team Redmond's corporate culture, which imposes a glass ceiling on anyone who doesn't have an MBA. And of course it doesn't include the underpaid service workers cleaning Valley bathrooms and undocumented employees in Valley kitchens.

(Photo by Marc Smith)

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<![CDATA[Striking janitors attempt to derail Nvision]]> The Nvision conference put on by chipmaker Nvidia is turning out to be unintentionally interesting. The stock price is down and Intel is looking to join AMD as a competitor in the high-end graphics processing market. Attendees are being greeted by union activists from Unite Here pointing out how the company has shipped thousands of faulty chips inside machines from Dell and HP.

It's part of the union's strategy to convince the company to pressure subcontractor Aramark into negotiating a better deal with striking service workers. And after today's festivities, a group of Diggnation groupies will be delivered by CalTrain after a boozy ride from San Francisco for a live taping of the show at 6:30 p.m. after the day-long conference. Both the activists and the fanboys will surely add color to the official company line CEO Jen-Hsun Huang pitched at the keynote. (Photo by AP/Mark Lennihan)

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<![CDATA[Qwest signs contract as union chalks up another win]]> The Communications Workers of America and the International Brotherhood of Electrical Workers have reached a tentative agreement with Denver-based telco Qwest, pending approval by the 20,000 employees under contract. The agreement was reached in the eleventh hour after the CWA and IBEW had voted to authorize a strike when their contracts expired at midnight on Saturday. The contract calls for 9 percent raises over its three year term, and brought employees of Qwest's directory-assistance operations under contract. Based on the language of the CWA's press release, critics might complain about the agreements reached on healthcare, with the union citing the healthcare cost epidemic and Qwest's financial performance as mitigating factors in their concessions to the bosses during negotiations.

The Qwest deal follows on a larger contract signed on behalf of Verizon employees by the CWA, also under threat of strike. "That day, with the strike deadline looming, the company started bargaining a lot more seriously," CWA spokesman Jeff Miller said of the earlier negotiations in a phone call last week. But even by adding call-center employees, the CWA has their work cut out for them expanding its rolls. "The new technologies are not as labor-intensive as past years. An awful lot of jobs have disappeared in the traditional copper wireline business," Miller added. What about fiber-optic linemen, like those working on Verizon's Fios efforts? Those employees were largely under contract already, according to Miller. And once the fiber's in the ground, those jobs will get buried, too. (Photo by AP/David Zalubowski)

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<![CDATA["At this rate, it will take the United States more than 100 years to catch up with Japan"]]> You'll be seeing a lot of articles this week claiming the U.S. is 101 years behind Japan in broadband, or some similar number-fumbling. The source is a report sponsored by the Communications Workers of America, a union which represents more than 700,000 workers in telecom and other jobs (for comparison, AFL-CIO membership is just over 12 million.) Let's skip the bogus arithmetic and get to what they want: "With the government’s help, we can make the most of our network capacity." Knock it off with the network stats and give us your pork price tag, willya?

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<![CDATA[IBM's immigration lawyers calls H-1B rules unconstitutional]]> The U.S. Department of Labor and law firm Fragomen Del Rey Bernsen & Loewy, which represents clients such as IBM on immigration issues, are in a legal tussle. The department is conducting an audit of Fragomen's practices in helping clients disqualify American applicants — a necessary step before employers can obtain H-1B visas for foreign workers. Now Fragomen has fired back with a lawsuit that calls the Labor Department's rules restricting lawyers' activities unconstitutional. How do lawyers work to make sure no citizen applicant could possibly qualify?

In the video above from last year, attorneys from law firm Cohen & Grigsby detailed how the firm suggests a minimum of job opening ads are placed in markets where it's unlikely a qualified applicant will apply, so few are received. The firm also provides the company with a checklist which the employer can use to quickly process — and reject — any applications it may receive so that the company can permanently certify the foreign national. If a citizen passes that test, there are further tricks to making sure something arises from the interview process that disqualifies them. Disqualifying Americans also works in the favor of companies overall, since it allows them numbers to cite when complaining about the need to raise immigration quotas and expedite the process.

Fragomen is citing the First Amendment and due process in arguing that it should be allowed to offer counsel to employers. Meanwhile, up to 3,000 applications are on hold pending the investigation.

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<![CDATA[Matt Mullenweg: All Automattic's foreign workers are independent contractors]]> At the Start conference yesterday, Automattic founder Matt Mullenweg, creator of the popular WordPress blog software, startled the audience by claiming his company didn't have any employees. Instead, he said, they're all independent contractors. "Is that legal?" some audience members whispered. We're not employment lawyers here, so we can't say. But we note that the IRS says independent contractors are "generally free to seek out business opportunities" and "are available to work in the relevant market." Translation: Mullenweg has just announced that his programmers are available for the poaching! If, that is, you don't mind the occasional security hole. Update: Audience members missed Mullenweg saying this was true of Automattic's foreign workers only. U.S. employees have full benefits, he tells us. Only the offshore workers are eligible for poaching! (Photo via Ma.tt)

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<![CDATA[Apple's overtime dodge is common practice — are you being cheated?]]> Engineer David Walsh has brought suit against his employer, Apple, alleging that the company misclassified him and others as exempt from overtime pay. The practice is endemic across California, especially at startups. Local labor laws set a high bar for exempting employees from overtime pay, and non-exempt employees can become very expensive for companies which demand workaholic schedules. I was misclassified years ago when working as a Web producer for Williams-Sonoma and got a nice settlement check after a visit from the National Labor Relations Board. The notorious "EA Spouse" blogger helped shake up labor practices across the entire videogame industry. While stuck at your desk missing your legally required meal break, read below to see if you're exempt or non-exempt:

  • If you're an employee who's paid hourly and has filled out a W-2 form, you are probably non-exempt. In which case, you are entitled to time-and-a-half after eight hours in a day or the first eight hours on the seventh continuous day and beyond, and double-time after twelve hours in a day or eight hours on the seventh continuous day.
  • For salaried workers, there are three classes of exemption. If you are an "executive," you are exempt from overtime. Executives are involved in the management of the company, have at least two subordinates reporting to them directly, have the power to hire and fire employees or recommend such actions and are allowed to make independent decisions that impact the business.
  • The "administrator" exemption only applies in cases where an employee is administering the business affairs of a company, directly assists a proprietor or executive, or works independently and exercises discretion on non-manual tasks that involve special skill or technical expertise. However, if you're in the process of producing goods and services that the company sells, you're probably not exempt. This class of exemption is often abused.
  • The "professional" exemption is one that's often abused at technology companies, because accredited engineers or others doing "learned or artistic" creative or intellectual work is exempted — but only if they make over twice the state's full-time minimum wage in salary, which is over $33,000 a year. And this is meant to apply to individuals, not entire classes of employees at a company (hence the quantity of class-action suits when companies apply the exemption too broadly).

Now you can see why employers prefer to hire independent contractors, for whom none of the above rules apply. Also, just because you're receiving a few stock options in no way exempts you from the national Fair Labor Standards Act which set these guidelines. And while discretion is a must when taking up the issue with human resources, rest assured that you'll be in for an even bigger payday from the courts if your employer fires you in retribution for attempting to clarify and enforce the rules. (Photo by Richard Masoner)]]>
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<![CDATA[Verizon avoids strike, for now]]> 65,000 employees of Verizon represented by the Communication Workers of America and the International Brotherhood of Electrical Workers agreed to postpone any strike after their contracts expired over the weekend. The unions agreed to indefinitely hold off on any work stoppage because progress was being made on the health benefits and job security fronts. Verizon has been aggressively replacing unionized employees with non-union technicians by outsourcing work to subcontractors. [WSJ] (Photo by AP/Mike Groll)

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<![CDATA[Want to learn how lawyers bounce U.S. workers from H1-B jobs? So do the Feds]]> Lori Melton is an attorney at the Fragomen Del Rey Bernsen & Loewy law firm, a specialist in "corporate immigration" — that is, obtaining H1-B visas for workers. She's scheduled to share her expertise today on the "Evaluation & Disqualification of U.S. Workers," a $199 seminar led by a liaison to the Dept. of Homeland Security. Think she'll show? On Monday, the U.S. Dept. of Labor announced it has begun auditing all permanent labor certification applications filed by attorneys at Fragomen, the "Corporate Immigration Law Firm of the Year," for improper attorney involvement in the consideration of U.S. worker applicants.

Nice timing. Fragomen keeps its client list close to the vest, but managing partner Austin Fragomen also chairs the American Council on International Personnel, where he leads a Who's-Who-of-High-Tech Board that includes execs from Intel, HP, IBM, Sun and Oracle.

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<![CDATA[Janitors picket Cisco in hopes of raises and healthcare]]> SEIU Local 1877, which represents area janitors, was out in force at Cisco today. The union's contract expired at the end of April, and it looks like the threatened strike has materialized here, as well as in Los Angeles. While the perception is that even service employees can become millionaires in the Valley, that's only if you get equity and happen to work for a company that succeeds. The reality?

These janitors are employed by contractors, make from $8 to $11 an hour with no health benefits, let alone stock options. They often live in cramped conditions thanks to the cost of local real estate. All so you don't have to get your hands dirty cleaning up after the catered lunch in the conference room. (Photo from a Valleywag tipster)

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<![CDATA[H-1B visa facilitator fined $45,000 over job listings]]> tripti_noorani_igate_mastech.jpgLast week, iGate Mastech was fined $45,000 for placing 30 online job listings in the spring of 2006 with the condition that only H-1B visa holders need apply. The company helps foreign workers obtain a visa (often for a fee), and then contracts out their labor to companies at a tidy profit. The contracting company doesn't have to worry about dealing with immigration authorities, paying health benefits and can lay the worker off without cause or severance — often resulting in a revoked visa and possible deportation if the worker can't find new employment quickly enough. As our tipster points out, iGate Mastech VP of immigration and compliance Tripti Noorani has successfully processed 20,000 H-1B visas for iGate Mastech employees since 1990. Maybe the company was just trying to help H-1B holders currently in the country stay in the country?

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<![CDATA[Worker-hating college site Uloop paid $50,000 to settle Jewish employee's lawsuit]]> College classifieds site Uloop, the subject of a labor complaint filed by fired employees, previously had to settle a wrongful termination suit, according to a tipster. A marketer and founding member of the team was fired last fall, and filed suit arguing that it was discriminatory. Unlike the rest of the team, veterans of the dot-bomb who were churchgoing Christians, he was young and Jewish. Uloop settled the case, paying $50,000. As for any hints that company management may like unions even less than Jews, notoriously anti-union newspaper publisher Gannett made invested an undisclosed amount in December. Update: Turns out the marketer in question is "Silicon Valley Publicist" Denis Hiller, who can thank his lucky stars he won't have to spin Uloop's latest possible transgression.

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<![CDATA[Labor complaint filed over Uloop firings]]> Uloop's Cal Poly campus representatives Austin Garrido and Sarah Doolittle, pictured here in their company shirts, have filed a complaint with the National Labor Relations Board after being fired by the student social network. The dismissal came only minutes after posting a message on the company's internal site expressing an interest in forming a union after discovering their paychecks were two dollars an hour lighter thanks to an unannounced pay cut, reports school newspaper The Poly Post. It is illegal in the United States to take action against employees for discussing union organizing efforts. I've asked Uloop and the reps for comment. (Via SFist)

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