Federal Mediation And Team Owners Of Major League Baseball

Submitted By beardawg
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I researched two famous negotiation situations for this paper. The first situation was in 1994 between the union representatives and the team owners of Major League Baseball. (MLB). The team owners wanted to implement revenue sharing among all of the teams with a condition that there would be a salary cap on how much any team could spend in order to win. Under this new rule, a high paid player could be traded to a low end team so that higher revenues could be received by the lower end team. The owners felt that by sharing the team’s revenue it would create fairness for each team. On the other hand, the players, as free agents, where used to negotiating their salaries, as well as when and whom they might be playing for. The players felt like they were being played like pawns under this new agreement and this did not sit well with them. Mediation efforts of the Federal Mediation and Conciliation Service failed because neither party wanted to come to an agreement or any type of settlement. It seemed that all parties had already decided to disagree with anything that was offered or suggested to them. At this time, the players decided to make a standing point to all concerned with “revenue”. The players simply walked off the fields, packed their bags and went home. Without the players, there would be no revenue. This resulted in the 1994 World Series being cancelled and millions of fans threatening to never support baseball again. The union stepped in and filed an unfair labor practice against the team owners. The National labor Relations Board sided with the players and ordered the owners to restore free-agency bidding and arbitration. When all was said and done, the team owners lost $700 million and the player’s salaries dropped by 5%. The higher paid veterans were forced to take a cut in pay because team owners where recruiting from lower paid minor league teams. The final agreement was not very far off the initial dispute. Only one addition of a luxury tax would be added that would end in 2000, at which would be divided to 13 smaller teams in order to ensure they would be able to compete with the larger teams. My second famous negotiation situation is known as “The Moscow Theater Hostage – Crisis Negotiation”. In 2002, close to 50 armed Chechen terrorists took hostage an entire theater of civilians. Their demand was for Russia to withdraw from the province of Chechnya to end the Chechen war. Russia tried to negotiate but authorities remained firm that all hostages be released. It seemed successful due to the fact that approximately 150 to 200 women, children and those requiring health care treatment was released. While Russia negotiated asylum to the terrorists by letting them choose any third world country to escape to, the authorities were able to negotiate with the captors, and all hostages, in which their national ambassadors had joined in on the negotiation process, to be released. By day three, the conditions were worsening because the hostages were planning their own attack toward their captors. A siege was put into action in which an aerosol anesthetic was pumped into
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