Topic > Labor Relations Tool in Professional Sport: Collective Bargaining

Industrial relations or labor relations are an essential consideration in any professional context. They provide the all-important interface between employers and professionals or employees. Typically, the profit-driven business model pits the interests of employers against those of employees. While the employer's interests lie in economy and profit, employees are primarily concerned with their well-being and working conditions. Therefore, labor relations tools such as collective bargaining are used to develop mutually acceptable structures and guidelines for employer-employee interactions. However, failure to adhere to these conditions often sparks trade union defiant actions, such as strikes and lockouts, to improve employees' contractual positions. The cases of the 2014 WNBA collective bargaining agreement and the 2011 NBA lockout can be used to understand labor relations in professional sports. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay The WNBA (National Women's Basketball Association) has come under intense scrutiny after its employees said they would abandon the current collective bargaining agreement within a year before it expires. This agreement was signed in 2014 following intense disagreements between the players' union and the WNBA. The players had asked for an increase in salaries as they were significantly underpaid. Likewise, players had also called for an increase in the number of players on the roster following the 2009 decision to reduce the roster to 11 players. The results included an agreement to add one additional player to the roster for a total of 12. Additionally, the WNBA and the players reached a revenue-sharing agreement that would allow them 30% of the overall earnings. Players were also entitled to marginal annual increases in the salary cap. On the other hand, employers can impose fines on players for failure to comply with WNBA requirements due to playing abroad. However, players who take less than three months to work abroad can tap into a $50,000 incentive fund. The 2011 NBA lockout is an excellent example of industry responses that employees can use to strengthen their bargaining position. The league and players, under the representation of their respective unions, have been engaged in negotiations for 18 months without a mutually acceptable compromise. Instead, the negotiations led to the intensification of the conflict. The players had asked for an increase in average annual player earnings to $7 million. They had also asked for an increase in all revenue outside of ticket sales. These requests conflicted with the league's interests, which are to make profits. The league intended to install a cap on players' salaries, ensuring that they would not have the opportunity to increase their salaries above the cap throughout the agreement's existence. As such, the stalemate contributed to a lockout in 2011, in which they refrain from playing and abscond from their league duties. Ultimately, the league allowed a 50/50 split of all player income. Collective bargaining is considered a fundamental right among employees. It refers to negotiations that take place between an employer and a group of employees who form an organization such as a union. The union is responsible for providing organizationstrong that he is able to negotiate on behalf of employees. These organizations often work to achieve higher wages, improve workers' conditions, and regulate interactions between employers and employees. The need for these unions and the broader concept of collective bargaining have to do with the perpetual conflict that exists between the employer and the employee, which can lead to a hostile and unfair work environment. The WNBA used the WNBPA (National Women's Basketball Players Association) to negotiate better wages and working conditions in the league. The organization was crucial in presenting strong, unified demands that would improve the well-being of each player. The installation of a soft salary cap was one of the main outcomes of the bargaining. A salary cap is a tool used to restrict or limit the maximum amount a professional team can pay its players in salary. Therefore, it sets a limit on how much a team of players can earn cumulatively or individually. The salary cap for the WNBA is currently $110,000 per player under the 2014 collective bargaining agreement. The limit comes from considerations of factors such as revenue raised to ensure the WNBA does not incur losses. However, the introduction of a soft cap allows for marginal increases in the salary cap imposed on players and teams. Therefore, the agreement offers players the opportunity to increase their annual earnings following the upward revision of the cap, depending on the prevailing conditions. This resolution offers benefits to the players and a compromise to the employer. Revenue sharing was also a vital aspect of the agreement. It refers to a distribution of income from the overall business to interested parties. In sports, it allows the distribution of this revenue among the teams involved in the activity. Therefore, taxpayers can enjoy the income they help create. WNBA players had asked for a larger share of revenue from ticket sales and other forms of merchandising. The result allowed players 30% of the league's revenue. This approach was essential as giving employees voting rights ensures their investment in the company as their interests align with those of the employers. However, a key consideration was how this deal compares to that of the NBA, where players command 50% of the revenue. Therefore, this situation indicates the presence of gender bias, which was also a major concern among female players. As with any collective bargaining activity, some parties may feel that the terms do not adequately address their concerns. Therefore, unacceptable compromises are bound to lead to the failure of the agreement. The WNBA players terminated their agreement a year before it expired. They cited gender discrimination where their incomes are lower than those of men in comparable jobs. Furthermore, salaries are lower than those of comparable international teams in China, Europe and Russia. The persistence of this discrimination led to the breakdown of the 2014 agreement, which could lead to conflict in the future between the players and the WNBA. The WNBA is likely to experience a player strike or lockout, as has been evident in the men's league. The 2011 lockout in the NBA was the result of the inflexibility of the participants on each side of the conflict. When each party's interests are set in stone, it becomes difficult to reach a mutually attractive compromise.