The 2011 NBA collective bargaining agreement dispute and resolution

Collective Bargaining

In relation to the article in the Los Angeles Times entitled NBA players, owners ratify collective bargaining agreement, the collective bargaining dispute was as a result of the National Basket Association (NBA) players and owners failing to reach a consensus after the collective bargaining agreement that was ratified in 2005 had come to an end. The previous agreement was said to have flaws and needed some amendments since it made the team suffer great financial loses. This meant that the season 2011-12 was put in jeopardy leaving NBA with no option but to lock out its players.

Basically what caused the main division between the owners and the players who are represented by National Basketball Player Association was the differences in the labor laws in which there was a demand for an opt out after six years of a 10 years contract plan, revenue, salary cap structure and luxury tax. About $250 million was meant to be saved in one season.

Underlying causes of the dispute

Teams were not allowed to open their various training camps due to some divide decisions on how the Basketball Related Income was split in the previous labor contract. The owners felt that the 57% split that the players got was too much. Moreover, the issue about teams exceeding the salary cap having to be taxed the same as other teams arose. Ethical issues like players conducts on drug related issues and disciplinary measures from the owners also had to be addressed. The lock out made it possible for teams to be signed in or trade or even access the NBA premises; therefore, most of the players signed contracts in other countries like Europe to go and play there.

Resolving the dispute

The dispute was however resolved and the players on their end agreed to ratify the deal by giving an 86 percentage vote out of the 200 players while the owners agreed on the ratification of the deal by a 25-5 vote. This meant that the teams were officially allowed to open their training camps and that the season for free agency that is the season 2011-12 had officially begun. This was conducted by electronic voting.

Importance of an arbiter

Commissioner David Stern among other union members seemed to have played the greatest role in the signing of this agreement. They constantly pursued players and owners to approve the Collective bargaining agreement and even went ahead to assure them of a triple header on Christmas day. George Cohen who is a federal mediator placed himself between the two parties (the players and owners) and tried to speak some sense into them about ironing out their differences and resolving the dispute.

National Basketball Players Association executive director Billy Hunter also dispatched letters to all players so that the may vote in favor of the new collective bargaining agreement.

Conclusion

Looking back, the players and owners have incurred great loses in terms of time and finances. The whole season that had initially scheduled 82 games just ended up missing the rest but only 66 of them .The issue of locking out players also meant a great loss to both players and owners and even left the funs disappointed. Some of the companies that had signed sponsorships with National Basketball Association were also very disappointed since they lost as well. The 66 games of the season could not have compensated the billions of dollars that were lost in the 2011-12 seasons.

One would have opted that the two parties would rather had sat down and negotiated because from the look of things both sides seemed to have an eagerness to dialogue to reach an agreement that is free and fair.

However, some of the issues could not be solved then and as such would have delayed the whole process. Some of these issues include: The age limit, the D-League and the NBA draft. Committees had therefore to be formed by the unions and the league.

Reference:

Turner, Broderick. NBA players, owners ratify collective bargaining agreement. Retrieved April 06, 2012 from http://articles.latimes.com/2011/dec/08/sports/la-sp-nba-labor-20111209