AbstractThis paper discusses the most recent collective bargaining agreement between NHL team owners and the NHL Players Association (NHLPA). Arguments are presented from both sides for what they want, the major issue for the league at the time was the revenue side of the income statement, which led to owners pushing for a salary cap and players pushing for profit sharing. In the end it took a full year to resolve all the issues before the owners & NHLPA could come to an agreement.
IntroductionThe NHL collective bargaining agreement is the basic contract between the NHL team owners and the NHLPA, changes & modifications are made through the typical labour-management negotiations of collective bargaining. Collective bargaining is the process of cooperation between labor unions and employers in respect of the provisions and conditions of employment of employees, such as wages, hours of work, working environment and grievance procedures, and about the rights and responsibilities of trade unions (Encarta, n.d.).
With the 1993-1994 collective bargaining expiring and the inability of the NHLPA & NHL team owners to negotiate a new deal resulted in the lockout of NHL and the cancellation of the entire 2004-2005 season. It was the first time the Stanley Cup was not awarded since 1919, and the first time that a major professional sports league cancelled a full season in North America due to a labour dispute. The lockout lasted 310 days starting September 16, 2004, the day after the collective bargaining agreement between the NHL and the NHLPA that resolved the 1994-95 lockout expired (Staudohar, 2005). The negotiating teams reached an agreement on July 13, 2005, and the lockout officially ended nine days later on July 22, after both the NHL owners and players ratified the CBA.
IssuesSALARY CAPThe salary cap is a limit on how much...