Knorr-Bremse AG and Westinghouse Air Brake Technologies Settle with U.S. Over Agreements to Not Poach Workers
Rail Equipment Suppliers and Subsidiaries Settle with U.S. Over Agreements to Not Poach Workers
The Department of Justice (“DOJ”) announced on April 3, 2018, that rail equipment suppliers Knorr-Bremse AG (“Knorr”) and Westinghouse Air Brake Technologies Corporation (“Wabtec”) agreed to terminate illegal agreements not to compete with each other’s employees. A third company, Faiveley Transport S.A. (“Faiveley”), also participated in the agreements until it was acquired by Wabtec in 2016. These no-poach agreements, in effect since at least 2009, are illegal under antitrust law because they restrict competition for U.S. rail industry workers, potentially limiting their access to better jobs, and restricting their mobility.
The settlement, which resolves a civil antitrust lawsuit filed by the DOJ’s Antitrust Division, will require Knorr and Wabtec to implement compliance measures to prevent this behavior in the future and will restore competition for employees in the U.S. rail industry.