Ali Emmott

OL 318 Employee/Labor Relations

Labor Unions
In the National Hockey League (NHL)
And the National Hockey Players Association (NHPA)

Labor unions are most commonly fabricated out of unfair working

conditions and inadequate wages. Although today we often forget
about our favorite millionaire athletes of Americas favorite sports
leagues, which at one time have been victims of tyrannical bosses,
harsh expectations and unbalanced wages. In the past non-unionized
athletes were treated as pieces of property with no rights to pensions,
or healthcare benefits. Just because professional athletics have
affluent incomes but dont wear a shirt and tie or have a 9 to 5
schedule does not justify for unfair working conditions or unfair labor
practices. It took players to become brave enough to stand up and
demand a fair share of the revenues that their top-talent provided,
leading into creating labor unions in professional sports.(Macklon, July)
A process that place with having a labor union is called collective
bargaining, whereby unions and management negotiate and
administer labor agreements. Collective bargaining agreements made
by labor unions in pro sports provides benefits, pensions, regulations in
players contracts, and various terms and conditions that provide fair
labor practices for both the players and owners of the teams.(Witney &
Sloane, 2010)

Ali Emmott
OL 318 Employee/Labor Relations
The National Hockey League known as the NHL, is a joint
enterprise organized as a not-for-profit unincorporated association
which is recognized as the sole and exclusive bargaining
representative for the present and future Clubs of the NHL. The
National Hockey League Players Association known as NHLPA is
recognized as the sole and exclusive bargaining representative of
present and future Players in the NHL. (NHL, 2012)
The National Hockey League Players Association (NHLPA) is the
union for professional hockey players in the National Hockey League
(NHL). Established in 1967, the union negotiates and enforces fair
terms and conditions of employment for NHL players. (Inside NHLPA ,
2013)The NHLPAs principal role is to represent the players of the
National Hockey League and to guarantee that their rights as players
are upheld under the terms of the Collective Bargaining Agreement.
(National Hockey League Player's Assocication)
In 1967 just previous to the formation of the National Hockey
Players Association, it was rumored that players averaged only about
$10,000 to $15,000 per year, with no pension or healthcare plants. If a
player missed a game due to injury, illness, or personal reasons they
were not paid. Many professional hockey athletes before 1967 were
taken advantage of and deprived of benefits and general respect from
team owners.

Ali Emmott
OL 318 Employee/Labor Relations
June 29th 2012 began the bargaining between the players
association and the NHL. Managements initial proposal would reduce
players share of hockey-related revenue from 57 percent to only 46
percent. (Press, 2013) Soon after the disagreement broke out and
controversy arose the 2012 NHL lockout went into full affect. Last
September 16, 2012, at midnight the previous collective bargaining
agreement had expired and by 2:30 AM Bill Daly the NHL deputy
commissioner declared, A lockout was formally implemented. The
lockout lasted 113 days and ended on January 6, 2013. The final
outcome was players will accept 53% with increased revenue sharing.
Last January 12th, 2013 the National Hockey League and the
National Hockey League Players Association signed a memorandum of
understanding reflecting terms of a new to-year Collective Bargaining
Agreement. (NHLPA Staff, 2013) The wide-ranging Agreement includes
an economic system under which hockey related revenues (HRR) will
be shared fifty-fifty between owners and the players. The agreement
also includes terms that limit the length of individual player contracts
to seven years and eight years when a team is re-signing its own
player. Also regulates the compensation structure, year-to-year
variability and defining minimum value.
This new agreement is the longest in League history, additionally
features a new defined benefit pension plan for the Players; enhanced
revenue sharing among the clubs; creation of a Revenue Sharing

Ali Emmott
OL 318 Employee/Labor Relations
Oversight Committee, on which the Union will participate; creation of
an Industry Growth Fund, designed to make long-term improvements in
the revenue-generating potential of low-grossing Clubs; the ability of
Clubs to retain a certain amount of salary in Player trades; a Player
playoff prize pool that doubles in size to $13 million in Year 1, rising to
$17 million for 2020/21 and 2021/22, and the creation of an OwnerPlayer Relations Committee one of several joint initiatives not present
in the previous Agreement.(NHLPA Staff, 2013)
Prior to the agreement there were several controversial issues
that lingered until the final movement of making the deal final. Those
issues being a pension plan for the players, the salary cap for the
2013-2014 season, the length of the Collective Bargaining Agreement
and individual contract term length and structure. The newest
agreement is a ten-year settlement but it gives either party a chance
to opt out of the contract after year eight. That means until at least
2020 the NHL will have labor peace but leaves plenty of room for
issues to emerge and challenge the Collective Bargaining Agreement.
Although the players wanted a shorter term both sides could
understand the need for long-term stability. The league had already
suspended play three times in the last eighteen years because of labor
disputes; therefore a clear agreement both sides would favor was a
necessity.

Ali Emmott
OL 318 Employee/Labor Relations

Ali Emmott
OL 318 Employee/Labor Relations

Works Cited
Inside NHLPA . (2013). Retrieved from National Hockey League Players'
Association: http://www.nhlpa.com/inside-nhlpa
Macklon, M. (July, 5 2011). The Rise Od Labor Unions In Pro Sports .
Retrieved from Investopedia : http://www.investopedia.com/financialedge/0711/the-rise-of-labor-unions-in-pro-sports.aspx
National Hockey League Player's Assocication. (n.d.). Retrieved 2013,
from NHL Alumni : http://www.nhlalumni.net/national-hockey-leagueplayers-association
NHL. (2012, September16). Collective Bargaining Agreement.
Retrieved 2013, from NHL.com.
NHLPA Staff. (2013, January 2013). NHL, NHLPA sign Collective
Bargaining Agreement. Retrieved 2013, from Nhlpa.com:
http://www.nhlpa.com/news/nhl-nhlpa-sign-collective-bargainingagreement
PHPA-Abour Site. (n.d.). Retrieved from Professional hockey players
association: http://www.phpa.com/index.php/site/about
Press, T. A. (2013, January 6). NHL Lockout Timeline: From The Start Of
Bargaining To Tentative Agreement Being Reached. Retrieved 2013,
from Huffington post : http://www.huffingtonpost.com/2013/01/06/nhllabor-timeline_n_2420731.html
Witney, F., & Sloane, A. A. (2010). Labor Relations. (Thirttenth, Ed.)
Prentice Hall .