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Professional baseball

Major League Baseball Players Association Stands Firm on August 12 Strike Date

Strategic Insights

— 2 min read

The Major League Baseball Players Association has decided to honor the August 12 strike date set last week, despite the owners' refusal to make a scheduled payment to the pension fund. The union's executive board and player representatives discussed moving up the strike date after learning of the owners' actions, but ultimately decided to hold firm. The strike date was announced after the owners rejected the players' counter-proposal, which asked for the eligibility requirement for arbitration to be returned to two years from three and the minimum salary to be raised from $109,000 to between $175,000 and $200,000.

Key Takeaways:

  • The players will honor the August 12 strike date set last week, despite the owners' refusal to make a scheduled payment to the pension fund.
  • The union's executive board and player representatives discussed moving up the strike date after learning of the owners' actions, but ultimately decided to hold firm.
  • The strike date was announced after the owners rejected the players' counter-proposal, which asked for the eligibility requirement for arbitration to be returned to two years from three and the minimum salary to be raised from $109,000 to between $175,000 and $200,000.
  • Richard Ravitch, president of the Player Relations Committee, stated that the owners feel they have no contractual obligation to make the pension payment, which represents one-seventh of the $57 million contributed annually by clubs.
  • Major League Baseball and the Players Association representatives met for two hours on Wednesday and made no significant progress on major issues, including the owners' proposal for a revenue-sharing plan.
  • Labor Secretary Robert Reich called for both sides to signal their commitment to bargaining, stating that the government will not intervene in the conflict.

Statistics:

  • The owners' proposed collective bargaining agreement is worth between $7 billion and $11.7 billion over seven years.
  • The owners' revenue-sharing proposal would provide a 50-50 split of all revenue, including licensing rights, with the players.
  • The players' proposed minimum salary is between $175,000 and $200,000, up from the current minimum of $109,000.
  • The owners' proposal to eliminate salary arbitration would affect players with fewer than three years of service time.
  • The payment to the pension fund represents one-seventh of the $57 million contributed annually by clubs.

Sources:

  • "Major League Baseball Players to Go on Strike on Aug. 12: Don Fehr." AP News. August 12, 1994.
  • "MLB Owners, Players Remain Far Apart After Brief Negotiation Session." The Washington Post. August 11, 1994.
  • "Reich Calls for Owners, Players to Show Commitment to Bargaining." USA Today. August 12, 1994.

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