US: Knorr, Wabtec agree to end pacts to not poach workers

Rail equipment suppliers Knorr-Bremse AG and Westinghouse Air Brake Technologies Corporation have agreed to end agreements to not compete for each other’s employees, the Justice Department (DOJ) said on Tuesday, April 3.

The two companies agreed as early as 2009 not to recruit or hire each other’s workers without prior approval, the department said in announcing the settlement.

The DOJ’s Antitrust Division filed a civil antitrust lawsuit on April 3 in the US District Court for the District of Columbia to challenge Knorr and Wabtec’s no-poach agreements. At the same time, the DOJ filed a proposed settlement that, if approved by the court, would resolve its competitive concerns and restore competition for employees.

In a statement, Assistant Attorney General Makan Delrahim said the complaint is “part of a broader investigation by the Antitrust Division” into no-poach agreements. As part of the settlement, Knorr and Wabtec must cooperate with the Antitrust Division “in any investigation into additional no-poach agreements to which they may have been counterparties,” Delrahim said.

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