NBA labor dispute faces decertification threat, deadline for negotiations

The league and the union remain deadlocked after a weekend of discussions

After another long round of labor negotiations, NBA Commissioner David Stern tried to get things moving Sunday by issuing an ultimatum and a deadline for the deals to end.

Stern announced a deal must be reached by Wednesday. The union must accept the league’s proposal of a 50-50 revenue split and new restrictions on free agency and team payrolls, or risk having to take only 47 percent of the revenue for players, along with a hard salary cap, as a substitute.

However, the union called the deadline artificial, according to reports by The New York Times. Union executive director Billy Hunter says unions need to hold firm for 52.5 percent of the revenue.

“My position is I don’t think there should ever be a circumstance where owners make the same or more than the players,” Hunter told The New York Times.

Still, the NBA talks face a strengthened threat in decertification, or the dissolving of the union, if a deal is not reached. If the union compromises too much, players could force its decertification, therefore leaving no representatives for negotiations, an unsatisfying situation for both the league and the union. However, if the league continues to force the ultimatum, the union may be able to find the 130  player signatures it needs to submit a petition to the National Labor Relations Board for decertification, reported ESPN.com, a move they can use as leverage against the ultimatum.

If Stern’s ultimatum does not spur the union-wide vote he is hoping for, the Wednesday deadline may pass with the threat of decertification facing both parties. In that case, the entire 2011-2012 season may be lost.

Comments

InsideScoop Daily eNewsletter

InsideScoop delivers the latest-breaking news affecting in-house counsel. Get the latest business trends, current corporate litigation, labor developments, technology initiatives and more — FREE. Sign up now!

You have been subscribed! You will receive a confirmation email soon.

See the entire list of InsideCounsel eNewsletters.

Resource Library


Reduce eDiscovery Costs and Risks through Email Disposition

Read this white paper to learn best practices on determining email retention periods with real...

Prepare for the Eventuality of eDiscovery Now and Reap the...

This report presents an overview of eDiscovery implementation challenges organizations may face as well as...

The Fastest and Most Cost-Effective Document Review Available!

Recommind's Predictive Coding is the market's only solution that allows clients the option of reviewing...

Bring the Benefits of Decision Tree Analysis to Your Everyday...

In this on-demand webinar, learn how to counter the challenges of litigation with predictive analytics...

13 Things to do Now to Reduce Risk and Avoid...

We have developed best practices for lowering your e-Discovery costs, shortening the length of your...

7 Simple Strategies for Improving Legal Fee Budgeting Certainty

Understanding the legal fee budgeting paradigm and following seven simple strategies will help you control...

Complimentary White Paper: Best Practices for Meeting Critical eDiscovery Challenges

Packed with practical advice, this white paper discusses best practices for meeting eDiscovery challenges across...

Complimentary White Paper "Key Considerations for Collection Methodologies and Resources"

This white paper addresses the need for companies to reevaluate their current collection policies in...

Moving Matters In-House: How Technology Enables Legal In-Sourcing

Strategically shifting more matters to in-house counsel has proven to be an effective strategy to...

5 Ways to Promote Responsible Content Sharing

Find out five ways that organizations can promote responsible sharing of content among employees by...

View All »

Advertisement. Closing in 15 seconds.