On April 3, 2018, the United States Department of Justice charged two of the world’s largest rail equipment suppliers, Knorr-Bremse AG and Westinghouse Air Brake Technologies Corporation (Wabtec), with unlawfully agreeing to restrain competition in the labor markets by entering into “no-poaching” agreements.
According to the DOJ’S complaint, Wabtec, Knorr, and their respective U.S. passenger and freight rail businesses entered into no-poach agreements in which they agreed not to solicit or hire away one another’s employees. These no-poach agreements impacted those who held or sought positions in project management, engineering, executive sales, and corporate officer roles.
According to the DOJ’s complaint, starting no later than 2009, senior executives at Knorr and Wabtec entered into no-poach agreements that involved promises and commitments to contact one another before pursuing an employee of the other company. In 2011, senior executives at Knorr and Faiveley Transport North America also reached an express no-poach agreement. By October 2011, Knorr had reached a similar agreement with Faiveley’s U.S. subsidiary.
Beginning no later than January 2014, senior executives at Wabtec Passenger Transit and Faiveley Transport North America had also entered into a no-poach agreement in which the companies agreed not to hire each other’s employees without prior notification to and approval from the other company. In July 2015, Faiveley and Wabtec announced their intent to merge, and Wabtec closed the acquisition in November 2016.
The companies have agreed to settle their claims with the Department of Justice.
If you were employed by Knorr-Bremse AG, Westinghouse Air Brake Technologies Corporation, Faiveley Transport S.A., or New York Air Brake Corporation, Knorr Brake Company, or Faiveley Transport North America, at any time between 2009 and the present, then you may have a claim for financial damage stemming from the suppression job opportunities, compensation, and the ability for employees to bargain for a better salary as a result of this conduct.
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