The “Job Creators”
Two from CBS about the CEO/MBA-class preventing competition in the job market:
WASHINGTON: The Justice Department alleged Friday that Meg Whitman, the former CEO of eBay (EBAY), was intimately involved in making an anticompetitive agreement that prohibited eBay and Intuit (INTU) from hiring each other’s employees.
IRVING, Texas: The maker of the iconic U.S. snack Twinkies said Friday it is going out of business and laying off all of its 18,500 workers after a national strike crippled its operations.
EBay and Intuit sought to cap salaries for tech workers by agreeing not to hire from each other, i.e. not to compete for labor. When you are in the field you normally sign a contract that limits your ability to move to a competitor of your employer, but EBay and Intuit aren’t competitors for anything except labor.
In the case of Hostess, the hedge fund that owns the operation had already extracted concessions in a 2004 Chapter 11 bankruptcy, and was demanding more concessions from workers. Management hadn’t developed new products to boost its falling sales, they were simply milking the operation for every dime it could produce. They were always going to shut down, or they would have developed something to appeal to the current generation of consumers.
They had no intention of negotiating with the workers, they were simply seeing how low they could go with wages and benefits before shutting the operation down.