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In: Operations Management

Does the current MLB collective bargaining agreement make it harder or easier for the players and...

Does the current MLB collective bargaining agreement make it harder or easier for the players and teams? Why?

Solutions

Expert Solution

The current MLB collective bargaining agreement make it harder for the players and the teams.

Let’s look at the situation. For nearly 25 years the collective bargaining has been in place. The result has been phenomenal for many years. There were no strikes and the players managed to improve their quality of life through a collective bargaining agreement. However, in the recent times we see that MLB has been posting record profits. However, unlike other sports, the players’ wages/income is capped at a certain level. In other sports where the players and their agents are free to negotiate with the teams, the wage and the earning of the player is dictated by market demand and the situation. However, in MLB it restricts the income of the players. This is quite unfair in today’s market.

As per the recent news, the players are willing to undergo strike to halt the league. If that happens then it is possible that the teams will be hurt, the owners will lose money and the overall brand of MLB will be hampered. Thus the collective bargaining may have done a lot of good in the past but it has become a hindrance in the present.


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