Arbitration in Baseball This paper w

This paper will discuss the use of arbitration in major league baseball. The first part of the paper will briefly examine the history of salaries in major league baseball and the change to arbitration in 1974. The second part of the paper will focus on final offer arbitration concerning salaries. This part will describe final offer arbitration and will discuss the effects it has had upon salary negotiations and player salaries in general. The third part of the paper will look at arbitration in the context of termination issues. This part will include a discussion of examples involving injury grievances.

In 1974, the owners and players in major league baseball agreed to use salary arbitration as the means of setting players' pay. In the 20 years since this happened, attitudes towards arbitration in baseball have changed. During the first 10 years, both sides were satisfied enough with the process that most observers concluded that arbitration would continue in baseball with few changes. During the second 10 years, however, attitudes changed so much that both sides and many observers began criticizing arbitration. In the summer of 1994, the team owners entered into the negotiations with the players with the intention of revising the 1990 labor agreement. Their ultimate goal was the elimination of salary arbitration. The result of the negotiations was the player strike and the aborted 1994 season.

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ts a more complicated problem. A study involving statistical analysis provided some interesting data concerning the use of final offer arbitration in baseball. The study sought to discover whether negotiated settlements differed from arbitrated settlements under final-offer arbitration. A sample was used of all major league baseball players who were eligible to participate in final-offer arbitration between 1986 and 1991. The study concluded that negotiated and final-offer arbitrated settlements did indeed differ significantly. But it found that most final offer arbitration awards tended to be of low quality, because they lay outside the range of negotiated settlements. This occurred in spite of the fact that there was an abundant amount of information available to both sides in baseball arbitration. There are three possible reasons for this. First, baseball arbitrators do not provide written explanations of their decisions, but simply write the binding offer into the player's contract. Second, final offer arbitration eligibility results in very substantial pay increases for players and the exact increase expected for a player may be difficult to determine. Third, the tremendous increase in broadcast revenue in basebal

Category: History - A