...except if all the competitors ask how much the employee was paid at their last gig, so bid $12.
Price fixing is an actual thing, that's why we have labor laws. Also see: non-compete agreements.
Price fixing is an actual thing, that's why we have labor laws. Also see: non-compete agreements.
There are 10s of thousands of businesses in the US. It's hard to believe there'd be any remotely successful collusion in keeping wages down.
Non-compete agreements are invalid in many states. Also, would you sign a non-compete agreement in order to get paid 10% of your value to the business?
This takes many assumptions: People know of all these businesses. People are able and willing to move at a whim (not so easy with family/friends), people are willing to change their jobs every other month (for a business a job is just a transaction of money vs time, human beings, failed constructions that we are don't see it that simple) and so on. Neither the world nor people are completely rational, so things which work in theory often donThere are 10s of thousands of businesses in the US. It's hard to believe there'd be any remotely successful collusion in keeping wages don't work in reality.
https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...
It doesn't sound like it was very effective. Cartels in general tend to be unstable, as members have powerful incentives to cheat on the agreement.
It's hard to say if this agreement actually reduced salaries in any significant way, as there were plenty of other companies in the area who were not part of the cartel.
Totally agree that the price fixing wasn't kosher.