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  • Essay / Labor relations tool in professional sport: collective bargaining

    Industrial relations or labor relations are an essential consideration in any professional setting. They constitute the essential interface between employers and professionals or employees. Generally, the profit-driven economic model pits the interests of employers against those of employees. While the employer's interests lie in profitability and making profits, 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 comply with these conditions often gives rise to industrial action, such as strikes and lockouts, to improve the bargaining position of employees. 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 custom essay on “Why Violent Video Games Should Not Be Banned”?Get the original essay The WNBA (Women's National Basketball Association) has come under scrutiny after its employees said they would abandon the current collective agreement one year before it expires. This agreement was signed in 2014 following intense disagreements between the players' union and the WNBA. The players were demanding an increase in their salaries because they were significantly underpaid. Likewise, players had also demanded an increase in the number of players on the roster following a 2009 decision to reduce the roster to 11 players. The results included an agreement to add one more player to the roster to bring the total to 12. Additionally, the WNBA and the players reached a revenue-sharing agreement that would allow them to receive 30% of the overall revenue. Players were also entitled to marginal annual salary cap increases. On the other hand, employers can fine players who fail to meet WNBA requirements due to overseas play. However, players who spend less than three months abroad can benefit from an incentive fund of $50,000. The 2011 NBA lockout is a prime example of industry responses that employees can use to strengthen their bargaining position. The league and the players, under the representation of their unions, had been engaged in negotiations for 18 months without reaching a mutually acceptable compromise. Instead, the negotiations led to an intensification of the conflict. The players had demanded an increase in their average annual winnings to $7 million. They had also demanded an increase in all revenues excluding ticket sales. These demands were at odds with the league's interests in making a profit. The league intended to impose a hard cap on players' salaries, ensuring that they would not have the opportunity to increase their salaries beyond the cap throughout the existence of the agreement. As such, the impasse contributed to a lockout in 2011, where they refrained from playing and absconded from league duties. Ultimately, the league allowed a 50/50 split of all revenue with the players. 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's mission is to provide a strong organization,able to negotiate on behalf of employees. These organizations often strive to achieve higher wages, improve conditions for workers, and regulate interactions between employers and employees. The need for these unions and the broader concept of collective bargaining relates to the perpetual conflict that exists between employer and employee, which can lead to a hostile and unfair work environment. The WNBA used the WNBPA (Women's National Basketball Players Association) to negotiate better wages and working conditions in the league. The organization played a crucial role in presenting strong, unified demands that would improve the well-being of every player. The installation of a soft salary cap was one of the main results of the negotiations. A salary cap is a tool used to restrict or limit the maximum amount a professional team can pay its players in salaries. Therefore, it sets a limit on the amount a team of players can earn cumulatively or individually. The WNBA's salary cap currently stands at $110,000 per player, per the 2014 collective bargaining agreement. The cap is derived from taking into account factors such as revenue collected to ensure the WNBA does not make losses. However, implementing a soft cap allows for marginal increases in the salary cap imposed on players and teams. The agreement therefore offers players the possibility of increasing their annual income when the cap is revised upwards, depending on current conditions. This resolution offers benefits to the players and a compromise to the employer. Revenue sharing was also a key aspect of the deal. It refers to a distribution of revenue from the entire company to stakeholders. In sports, it allows these revenues to be distributed with the teams involved in the business. Thus, contributors can benefit from the income they help to create. WNBA players had demanded an increased share of revenue from ticket sales and other forms of merchandising. The result allowed players to receive 30% of the league's revenue. This approach was essential since the emancipation of employees guarantees their investment in the company since their interests align with those of employers. However, a key consideration involved comparing this deal to that of the NBA, where players own 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 attempt at collective bargaining, some parties may feel that the terms do not adequately address their concerns. Therefore, unacceptable compromises will inevitably lead to the collapse of the agreement. The WNBA players opted out of their deal a year before it expired. They cited gender discrimination because their income is lower than that of men in comparable jobs. Additionally, salaries are also lower than 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 susceptible to a player strike or lockout, as has been evident in the men's case. league. The 2011 NBA lockout was the result of the inflexibility of participants on both sides of the conflict. When each party's interests are set in stone, it becomes difficult to reach a compromise that pleases either party..