Exam 7: Labor Relations and Collective Bargaining in Sport

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The National Labor Relations Act sets forth three seminal rights for employees. They are:

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Why are local bargaining units inappropriate for collective bargaining in professional sport?

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Local bargaining units are generally considered inappropriate for collective bargaining in professional sports for several reasons:

1. **Uniformity of Rules and Conditions**: Professional sports leagues operate most effectively when there is a uniform set of rules and conditions that apply to all teams and players. This includes salary caps, free agency rules, draft policies, and other regulations that ensure competitive balance. Local bargaining units would lead to a patchwork of different rules and conditions, which could undermine the integrity of the league as a whole.

2. **Mobility of Players**: Players in professional sports often move from team to team, whether through trades, free agency, or other mechanisms. If each local unit had its own collective bargaining agreement (CBA), players would be subject to a constantly changing set of work conditions and rules, which could be confusing and potentially unfair.

3. **League-Wide Revenue Sharing**: Many professional sports leagues have revenue-sharing arrangements where teams share certain revenues, such as broadcast rights fees, to maintain competitive balance. Local bargaining could disrupt this system, as different units might negotiate different shares of these revenues, leading to financial disparities that could affect competitive balance.

4. **Collective Bargaining Power**: A single, league-wide bargaining unit typically has more power than several smaller, local units. This is because the players can present a united front to the league and team owners. Fragmentation into local units could weaken the bargaining power of the players, potentially leading to less favorable terms.

5. **Consistency in Enforcement**: Disciplinary actions, drug policies, and other enforcement measures need to be consistent across the league to be fair and effective. Local bargaining units could lead to inconsistencies in how rules are enforced from one team to another, which could be problematic for both the league and the players.

6. **Marketing and Branding**: Professional sports leagues benefit from a strong, cohesive brand identity. Local bargaining could lead to inconsistencies in how the league and teams are marketed, which could dilute the overall brand and reduce the effectiveness of marketing efforts.

7. **Legal and Regulatory Compliance**: Sports leagues often have to navigate complex legal and regulatory environments, including antitrust laws, labor laws, and international regulations. A single, league-wide CBA can help ensure that the league and its teams are in compliance with these laws. Local bargaining could complicate this process and potentially lead to legal challenges.

8. **Fan Experience**: Fans have expectations regarding the uniformity of the game experience, player availability, and league standards. Local bargaining could lead to variations that might confuse or disappoint fans, potentially harming the sport's popularity.

In summary, local bargaining units are inappropriate for collective bargaining in professional sports because they could lead to inconsistencies and imbalances that would disrupt the uniformity, competitive balance, and overall operation of the league. A single, league-wide bargaining unit is better suited to address the unique needs of professional sports leagues and their players.

A collective bargaining agreement takes precedence over an individual employee-athlete's contract.

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Management is not obligated to negotiate with the union over which of the following?

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Once a union is certified, managers cannot make unilateral changes in the workplace unless they are deemed management rights, which are "managerial decisions which lie at the core of entrepreneurial control".

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In determining who is eligible for salary arbitration, there is a group of salary eligible players called "super twos". Super twos are:

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Once a union is in existence, in accordance with the National Labor Relations Act, management must engage in collective bargaining over mandatory subjects of bargaining. Mandatory subjects of bargaining are:

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Unions are not held liable for errors in judgment about whether to pursue a grievance, interpretations of collective bargaining agreements, or representing an employee in the grievance arbitration process.

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A court can overturn a decision only where the plaintiff can prove that the arbitrator abused their discretion or exceeded the scope of their authority.

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Discuss the debate about whether college athletes should be able to unionize. What are the reasons supporting the unionization of college athletes and why are colleges challenging the right of student athletes to unionize? Should only NCAA Division I football and basketball players be allowed to unionize? What about athletes in other sports? In other divisions?

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A professional league can encourage its players to form a union and even support their efforts financially in order to work together to create a collective bargaining agreement and achieve a labor exemption to the antitrust laws.

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Major League Baseball and the National Hockey League both use salary arbitration to settle salary disputes. Major League Baseball's form is unique. Please choose the answer below that provides the name of the type of salary arbitration MLB uses as well as how it works.

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Please discuss the reasons that labor relations in professional sport are unique as compared with labor relations in other industries.

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