Hockey Collective Bargaining Agreement. Essay

1008 words - 4 pages

Collective bargaining is the process of cooperation between trade unions (or labor unions, as they are called in the USA) and employers (represented by management) 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. (www.en.wikipedia.org/wiki/Collective_bargaining_agreement)The CBA is six years in length with the NHLPA having the option to re-open the agreement after Year Four the NHLPA also has the choice of extending the CBA for an additional year at the end of the term. (http://www.nhl.com/nhlhq/cba/index.html)The players' share will be 54% to the extent League revenues in any year are below $2.2 billion; 55% when League revenues are between $2.2 billion and $2.4 billion; 56% when League revenues are between $2.4 billion and $2.7 billion, and 57% when League revenues in any year exceed $2.7 billion. No player may be eligible to contract for or receive in excess of 20% of the Club's upper limit in total annual compensation. In 2005-06, no player will be allowed to contract for total compensation in excess of $7.8 million in any year of his contract. The minimum NHL player salary in 2005-06 and 2006-07 will be $450,000; $475,000 in 2007-08 and 2008-09; $500,000 in 2009-10 and 2010-11, and $525,000 in 2011-12. (http://www.nhl.com/nhlhq/cba/index.html)Performance bonuses will only be permitted for the following types of players: (1) players on entry-level contracts; (2) players signing one-year contracts after returning from long-term injuries (players with 400 or more games who spent 100 or more days on injured reserve in the last year of their most recent contract); and senior experienced players who sign a one-year contract after the age of 35. (http://www.nhl.com/nhlhq/cba/index.html)Entry Level players will be subject to a maximum annual salary (plus signing and games played bonuses) of $850,000 for 2005 and 2006 draftees; $875,000 for 2007 and 2008 draftees; $900,000 for 2009 and 2010; and $925,000 for 2011 draftees. The maximum combined signing bonus will be limited to 10% of the player's maximum annual compensation in any year. Entry Level players may negotiate for performance bonuses up to a maximum of $850,000 in individual "Schedule A" bonuses per year (maximum of $212,500 per bonus). A player may also be entitled to earn individual "B" bonuses for League-wide excellence, which will, as a general matter, be paid by the League. In addition, a player will be eligible to negotiate with his club "excess" individual "B" bonuses, subject to a maximum total of $2 million in any year. (http://www.nhl.com/nhlhq/cba/index.html)Players who sign their first deal at age 18-21 are required to sign three-year Entry Level contracts; players age 22-23 will be required to sign two-year deals; and players age 24 will be required to sign a one-year Entry Level contract. Clubs may sign 2004 draftees to a...

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