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Antiwork

Any way to challenge employers using “local market pay surveys” purchased from 3rd parties as excuse to not raise pay ranges, and equivent to an end run around regulations forbidding wage price fixing/anti-competition?

The FTC recently ruled price fixing by algorithm is still price fixing, as relates to landlords and property managers trying to evade price-fixing agreements. See: https://www.ftc.gov/business-guidance/blog/2024/03/price-fixing-algorithm-still-price-fixing In light of that, is their an argument to be made that corporations using 3rd party data to wage-fix and suppress salaries is still a violation of anti-competition laws? My spouse works for a publicly traded company, and has not gotten a single COL raise over the last 3 years; which during Covid and the inflation during that period has been brutal. The standard line their manager gives is: “The primary drivers of our salary budgets are Local Market Pay Data. Local Market Pay Data are the specific surveys we purchase to obtain actual pay rates for roles in local markets/countries.” In the company Pay FAQ for employees, they state: Q4: “Competitive Pay” is a buzzword that is used quite a bit as well…


The FTC recently ruled price fixing by algorithm is still price fixing, as relates to landlords and property managers trying to evade price-fixing agreements. See: https://www.ftc.gov/business-guidance/blog/2024/03/price-fixing-algorithm-still-price-fixing

In light of that, is their an argument to be made that corporations using 3rd party data to wage-fix and suppress salaries is still a violation of anti-competition laws?

My spouse works for a publicly traded company, and has not gotten a single COL raise over the last 3 years; which during Covid and the inflation during that period has been brutal. The standard line their manager gives is: “The primary drivers of our salary budgets are Local Market Pay Data. Local Market Pay Data are the specific surveys we purchase to obtain actual pay rates for roles in local markets/countries.”

In the company Pay FAQ for employees, they state:

Q4: “Competitive Pay” is a buzzword that is used quite a bit as well as “Equitable Pay”. What
about a Livable Wage?

Competitive pay is the relationship of pay to the going rate in the local market for any company.
Equitable pay is ensuring people who perform similar work are paid similarly for the work they
do. Living wage is a wage considered to be enough to afford a basic standard of living and has
varying considerations and definitions. Pay and pay ranges are based upon the market pay data for a role in each area. We strive to pay equitably and competitively compared to the market, and review all pay and ranges at least annually. Given the varying definitions of a living wage, such factors are not main
considerations when setting pay or pay ranges.

But if EVERY employer is using this data , and none have given a COL raise, or even plain vanilla raise in order to keep/attract employees, then NEXT year the range is exactly the same !!! This seems like the exact definition of colluding, but instead of company A talking to company B; both talk to Company X who then passes the info along.

They recently had an employee Town hall, and this exact question was brought up.
This was from the Q and A:

Q: Management consistently talks about growth outpacing inflation [as justification for cost cutting/layoffs/etc]. However, colleagues often ask about whether or not inflation impacts pay increase reviews, and the response historically is that inflation is not considered as part of the global pay review process. Can you explain the difference in those two positions please? Growth needs to outpace inflation, but pay reviews and increases do not?

A: Inflation certainly does have an impact on wages because it can influence market rates over
time, but there is not a direct correlation

Does anyone know which US government dept would be best to post such an inquiry about this practice and whether constitutes anti-competition practices?

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