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An interesting Labor Negotiations Case

Many Labor Negotiation cases are, well, rather boring. As professionals in

Employee and Labor Relations, Collective Bargaining and Personnel Matters, we are always reviewing labor negotiation cases, and the 2022 MLB Union Deal is a textbook example of compromise that is also a very interesting study!

In 2022, Major League Baseball (MLB) faced a crisis. Players wanted better salaries and benefits, while owners wanted to keep costs down. After months of negotiations, both sides were able to reach an agreement that pleased neither side completely, but saved the season and provided some more security for players going forward. This union deal is in many ways a textbook example of labor-management compromise, and it provides useful lessons for all upper management involved in labor relations.

An article written by Ian Kullgren for Bloomberg Law takes an in-depth look into the details of this historic agreement and how it demonstrates effective labor management strategies. In their article they share:

"As details of the collective bargaining agreement that ended a 99-day lockout emerged, it became clear that each side got some—but not all—of what it wanted. The players raised the starting salary from $570,500 to $780,000 by 2026, expanded a bonus pool for young players, and convinced the league to ease a competitive balance tax that they said amounted to a salary cap.
While the players didn’t accomplish their goal of fundamentally changing the free-agency structure to help young players win lucrative contracts sooner, they clinched a limited draft lottery to discourage a practice known as “tanking,” where a team intentionally loses games to get the first crack at players in the next season’s draft.
“They got as much as I think they could have hoped for under the circumstances,” said Jim Quinn, a veterans sports attorney with Berg and Androphy in New York who frequently represents players unions."

If your organization is looking for assistance or education related to negotiating labor agreements, look no further than Marc Inc's expert team of consultants! Our professional associates understand the importance of compromise when working out agreements between employers and employees alike.

Contact us today to learn more about our services! 812-232-1990


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