Sunday, 2 December 2012

Labour Relations Within The NHL

By Andrew Mattheakis


The intricacies of labour relations and particularly the act of collective bargaining aren't open to interpretation by those unversed in the means of the negotiating table. The best round of NHL discussions have beckoned people to come out and vehemently share their thoughts on the matter, and I typically find myself in the listeners position because of my years of experience in the world of labour relationships. Surprisingly, and somewhat incredibly, the round of talks has fostered a solid interest on the part of Canadians compared to other significant examples of industrial disputes, that have garnered considerably less fascination.

Bar the fervour of Canadian's, the bargaining arena remains a misunderstood beasts for many who fail to view it for just what it's; a level arena for both players and managers to iron out employment based issues, requirements and factors. The forum is specially established in order that any hint at industrial action by one of the characters involved becomes a powerful impetus to find a mutually advantageous deal. Actually, the system appears pretty efficient. Something in the order of 98% of collective deals are renewed without any work disruptions. The Ontario Ministry of Labour reports that industrial action in 2011 was significantly lower than previous years. Experts think this is a sign of responsible collective bargaining during financially difficult occasions.

The case of the NHL was the exception that confirms the rule. Omitting the above mentioned, systemic indicators usually lead to occasional bouts of industrial issues. It's part and parcel of the whole negotiation procedure.

The truth of the matter is exactly how to divide the significant profits garnered by the NHL between both parties. Yes the poor fan needs to sacrifice the loss of entertainment but in general the impact on the Canadian and U.S. financial system is insignificant. It's a two party fight plain and simple. What's interesting is the fact that individuals simply have difficulty accepting that in collective bargaining there's always a possibility that one of the parties might quit work activities to hurt the other party and force concessions. Essentially; this is just what arduous bargaining is all about. Although Canada's idiosyncratic approach means the subject is emotional charged.

Invariably, as the negotiations come to a close the focus will turn to means of recuperating the losses incurred by the bargaining process by each players and owners. The NHL reports losses close to a fifth of its annual revenue projections (if the games resume in the immediate future), with a identical destiny confirmed for the players also. As an important problem in the whole bargaining procedure, we foresee a solution only when both accept the invariable negative implications of disputes. Making up the losses for the lock-out likely will take many years. It's even possible that those losses may never be recovered, if for instance the league loses its future market share of people's entertainment dollars. Therefore, is it worth it? The experience of the first lockout taught the league owners that it was somehow worth the cost. They returned to significantly greater income and for some greater profitability. The present conflict separates itself by the shared view that a restructured revenue method will embolden the league further. It remains to be observed whether they are correct or incorrect.




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