Raytheon Technologies Corp., the parent company of East Hartford-based jet engine manufacturer Pratt & Whitney, was recently advised that it is a “target” of a Justice Department probe seeking information about an alleged wage-fixing scheme in the aerospace industry, according to documents filed by Raytheon with the Securities and Exchange Commission late last week.
The Massachusetts-based conglomerate disclosed that it received a grand jury subpoena related to the investigation in late 2019, about two years before prosecutors filed criminal charges against six people, including a former Pratt employee, alleging they worked together to keep their respective aerospace manufacturing firms from “poaching” highly skilled workers from each other. The motive was to control wages by limiting employees’ ability to find work with a competing business, according to the Justice Department, a violation of federal antitrust laws.
More recently, Raytheon was “advised that the company is a target of the DOJ investigation, and we continue to cooperate with the investigation,” the documents state. “No criminal charges have been filed against the company or its affiliates.”
The company also said that the probe extends to Pratt’s sister subsidiary, Collins Aerospace. Collins is based in North Carolina but has operations in Connecticut.
The alleged wage-fixing conspiracy first came to broader public attention in December, when a former outsourcing manager at Pratt, Mahesh Patel, was charged with “conspiracy in restraint of trade.” Patel is accused of acting as the main enforcer of the “no poaching” agreement, allegedly “berating” those who cheated on the deal by continuing to recruit from each other’s companies.
Shortly after, five alleged co-conspirators were also charged, including three men from Connecticut.
The investigation has triggered a series of civil lawsuits from workers who allege their opportunities to advance in the industry and secure higher pay were frustrated by the purported scheme.
In its SEC filing, Raytheon Technologies said it expects the lawsuits to eventually be consolidated into a single joint complaint.
“We believe that each of these lawsuits lacks merit,” the company said.
