UPDATE 1-Knorr, Wabtec settle with U.S. over agreements to not poach workers

WASHINGTON, April 3 (Reuters) - Knorr-Bremse AG and Westinghouse Air Brake Technologies Corp (Wabtec) have agreed to scrap an illegal agreement to refrain from poaching each other's employees, the Justice Department said on Tuesday in announcing a settlement with the two rail equipment suppliers.