WEEK 7 DISCUSSION

KIN 607: Legal Aspects of Sports

Week 7 Notes: Labor Law & Collective Bargaining

The following Week 7 Notes emphasize important concepts in the Learning Materials and provide additional information related to these concepts.

The topics addressed in the Week 7 Notes:

· Labor Law

· National Labor Relations Act

· The Role of Association of Players

· Collective Bargaining Basics

· Unfair Labor Practice Charges

I. Labor Law Overview

The National Labor Relations Act (NLRA) was enacted by Congress in 1935. This act provides the legal structure governing employer-employee relations in the United States.

 

The National Labor Relations Board oversees and enforces the NLRA and determines which issues may be collectively bargained (Mitten et al., 2013).

II. National Labor Relations Act

Section 7 - identifies three basic rights for employees (Mitten et al., 2013)

1. The right to form, join, and assist labor organizations

2. The right to bargain collectively through representatives chosen by the employees

3. The right to engage in concerted activities, such as picketing and strikes, to advance and protect their interests

Section 8 - prohibits employers from (Mitten et al., 2013):

1. Refusing to meet and confer at reasonable times to collectively bargain with employees’ representatives and provide relevant information

2. Interfering, restraining, or coercing employees in the exercise of their Section 7 rights

3. Interfering with the formation or administration of any labor organization

4. Discriminating against employees to encourage or discourage labor organization membership

5. Discriminating against an employee because he or she has filed a charge with the National Labor Relations Board (NLRB)

III. The Role of the Players Association

Section 7 of the NLRA allows employees in the United States to join or form labor unions (Jessop, 2015). 

A labor union is an organized association of workers, often in a trade or profession, formed to protect and further their rights and interests.

· Major League Baseball Players Association (MLBPA)

· National Basketball Players Association (NBPA)

· National Football League Players Association (NFLPA)

· National Hockey League Players Association (NHLPA)

Players in the four major sports leagues in the United States are represented by players associations, which are unions:

These players associations represent their respective professional athletes in collective bargaining negotiations with leagues.

IV. Collective Bargaining Basics

Collective bargaining is a negotiation process through which an employer and the representative of its employees have a mutual obligation to meet at reasonable times to confer in good faith with respect to the three mandatory terms of collective bargaining.

A collective bargaining agreement is a contract that documents the outcomes of collective bargaining negotiations and, in turn, outlines the rights and responsibilities related to the employment relationship that flow between employees and employers.

The terms of a collective bargaining agreement are binding on all parties to the agreement. (Jessop, 2015)

· Collective Bargaining Basics: Mandatory Terms

The NLRA specifies three mandatory terms of collective bargaining:

· Wages

· Salary caps

· Maximum and minimum player salaries

· Hours

· Number of games per season

· When players must report for training camps and pre-season activities

· The length of the post-season

· Conditions of employment

· Drug testing

· Conditions of travel for road games

Because these are mandatory terms of collective bargaining, league owners and representatives must meet to negotiate these items with players’ association representatives. League owners cannot unilaterally impose conditions in these three areas upon the players.

· Collective Bargaining Basics: Agreement Expiration

When a collective bargaining agreement expires, the sides have several options:

1. The sides can maintain the status quo and continue operating under the old collective bargaining agreement until a new one is collectively bargained.

2. Either side can utilize an economic weapon in an attempt to gain concessions (or, an upper hand) in collective bargaining a new agreement.

· Collective Bargaining Basics: Attempts to Gain Concessions

The following are economic weapons employers and employees/unions may use in an attempt to gain concessions in collective bargaining.

· Employers:

· Lockout: Employers may lock out employees after a collective bargaining agreement has expired. During a lockout, employees are prevented from working and do not receive paychecks.

· Unilaterally impose terms of a new collective bargaining agreement upon employees: Employers can do this if an impasse is reached in negotiations.

· Employees/unions:

· Strike: Employees may strike after a collective bargaining agreement has expired. During a strike, employees refuse to report for and engage in work for the employer. As such, they are not compensated during the strike.

· File an antitrust lawsuit: After a collective bargaining agreement has expired, if employers lock out employees and an impasse has been reached in collective bargaining, employees may decertify their union and file an antitrust lawsuit. It is critical to understand that a union cannot file an antitrust lawsuit, because an antitrust lawsuit is outside of the realm of labor law. Thus, the employees must vote to decertify their union to take this step. If employees win their lawsuit, the court will lift the lockout. Then, employees will vote to recertify their union. The union will then represent them in finishing the collective bargaining negotiations. (Jessop, 2015)

V. Unfair Labor Practice Charges

Both employers and employees/unions may file unfair labor practice charges against the other with the National Labor Relations Board. 

One reason for which an unfair labor practice charge may be filed is if either side  refuses to meet and confer in good faith with the other about the mandatory terms of collective bargaining after a collective bargaining agreement has expired 

What is Good Faith?

· Good faith does not require the sides to agree to a proposal or make a concession. Rather, good faith merely requires the sides to come together at reasonable times to collectively bargain with respect to the three mandatory terms of collective bargaining.

What Amounts to Bad Faith?

Bad faith is:

· Failing to meet at reasonable times with each other to collectively bargain

· Refusing to recognize a union as the players’ exclusive bargaining representative (e.g., team owners negotiating directly with players instead of the players association)

· Failing to provide relevant information related to wages, hours, and terms of employment

· Information becomes relevant to collective bargaining when the issue is raised at the collective bargaining table.

· Example: If an owner says he or she cannot afford to pay players higher salaries at a press conference to the media, outside of collective bargaining, this information is not relevant.

· Example: If the same owner makes the statement that he or she cannot afford to pay players higher salaries at the bargaining table, then the information is relevant. He will likely be required to open his financial books to the players association to prove his claim. (Jessop, 2015)

References:

Jessop, A. (2015).

Mitten, M. J., Davis, T., Shropshire, K. L., Osborne, B., & Smith, R. K. (2013). Sports law: Governance and regulation, College edition. New York, NY: Wolters Kluwer Law & Business.