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Professional baseball

Owners and Players Remain Deadlocked in Labor Dispute

Strategic Insights

— 1 min read

A three-hour meeting between Jerry McMorris and Donald Fehr, the owner of the Colorado Rockies and the players' labor leader, respectively, ended with no significant progress on the critical payroll tax issue. The impasse leaves the teams operating against a management-imposed deadline to reach an agreement by Thursday midnight or face a salary cap. The National Labor Relations Board has dismissed an unfair labor practice charge against the players, leaving the owners with a 0-2 record on such charges.

Key Takeaways:

  • The players' union and the owners remain far apart on the payroll tax issue, with the owners insisting on an artificial mechanism to drive salaries down and the union opposing any tax rates that would "destroy the market."
  • The critical disagreement centers on the revenue-sharing plan adopted by the owners in January, with the union suggesting modifications but the owners closing off those options.
  • The owners have selected Jerry McMorris as the man with the best chance of making a deal with the union, but the union remains skeptical of the owners' willingness to compromise.
  • The owners' committee, including McMorris, has been holding behind-the-scenes talks with union officials since August, but no progress has been made.
  • The NFLPA had proposed a fixed 5.25 percent tax on payrolls and a new, floating tax on revenues, but the owners have not indicated a willingness to consider these ideas.
  • The deadline for a salary cap implementation looms, with the union threatening to challenge the owners' action before the National Labor Relations Board.

Statistics:

  • The players' strike has lasted for 131 days.
  • The National Labor Relations Board has dismissed an unfair labor practice charge against the players, leaving the owners with a 0-2 record on such charges.
  • The NFLPA proposed a fixed 5.25 percent tax on payrolls and a new, floating tax on revenues, with the tax starting at 2.09 percent for next year.
  • The owners have until Thursday midnight to reach an agreement or face a salary cap implementation.

Sources:

  • Donald Fehr, Players' Labor Leader
  • Jerry McMorris, Owner of the Colorado Rockies
  • Richman, Ira. "Owners Remain Deadlocked in Labor Dispute". The New York Times, 1994.
  • Selig, Bud, Acting Commissioner
  • Montgomery, Dave, Chief Operating Officer of the Philadelphia Phillies
  • Hibbard, Mike. "McMorris Choosen to Make Deal with Players". The Boston Globe, 1994.
  • (Source 5 not provided)

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