CASE
WHAT IF THE CANADIAN HOCKEY LEAGUE UNIONIZES?
The world of professional sports is highly unionized. Professional players in basketball, baseball, football and hockey all have union representation. The Canadian media have reported several stories related to the Canadian Hockey League (CHL). The CHL comprises about 60 teams that play in the Ontario Hockey League, Quebec Major Junior Hockey League, and Western Hockey League. The goal for many of the league’s 1,300 junior players, aged 16-20, is to play professionally in the National Hockey League (NHL).
In particular, media stories have also highlighted union drives for junior hockey players. A previous unionization attempt in Halifax by what was then known as the Canadian Hockey League Players’ Association failed. That union then sought the assistance of the largest private-sector union in Canada – Unifor. Unifor is creating a leadership team and legal entity so it can start a more formal certification drive. According to Unifor, the union seeks to improve pay, reduce the restrictions currently in place on scholarships and enhance health insurance. Union organizers argue that players can, in essence, earn less than one dollar an hour while owners make profits from ticket, food/beverage and clothing sales. Leadership of the league assert that fewer than one-third of teams are profitable, that they spent $5 million a year in tuition for former players and that they have always looked for ways to better meet the needs of players (both as athletes and as young people). In short, they feel the introduction of a third party (a union) will likely not do any better.
On top of the union drive, the CHL has been hit with a class-action lawsuit of $180 million. The lawsuit alleges that the players (who are often paid between $35 and $50 a week for hours of practice, training, games and travel) are owed millions of dollars as the league has failed to pay minimum wage, holiday, overtime and vacation pay. The lawsuit further alleges that these players ere, in essence, forced to sign contracts that violated minimum wage legislation. The CHL leadership argue that these laws do not apply as the players are, in essence, amateur student athletes (eligible for scholarships) and independent contractors.
Sources: “Canada’s junior hockey teams violate minimum wage laws: lawsuit: Player contracts include weekly pay of between $35 and $50.” (20 October 2014). CBC News. Retrieved from http://www.cbc.ca/news/canada/toronto/canada-s-junior-hockey-teams-violate-minimum-wage-laws-lawsuit-1.2806008; Cribb, R. (20 October 2014). “Class action lawsuit filed against Canadian Hockey League over wages. Suit alleges junior hockey league breaches minimum wage laws. President of league says it ‘will vigorously defend the way our teams operate.’” Toronto Star. Retrieved from http://www.thestar.com/news/world/2014/10/20 class_action_lawsuit_filed_against_canadian_hockey_league_over_wages.html; Russell, S. (7 October 2014). “Major junior hockey gets new push to unionize.” Toronto Star. Retrieved from http://www.thestar.com/sports/hockey/2014/07/07 major_junior_hockey_gets_new_push_to_unionize_from_familiar_controversial_figure.html; The Canadian Press. (7 Octoer 2014), “Unifor finalizing plans to unionize Canadian Hockey League.” Retrieved from http://www.cbc.ca/news/canada/windsor/unifor-finalizing-plans-to-unionize-canadian-hockey-league-1.2701355.
QUESTIONS:
1. Let’s assume that the CHL becomes unionized. You need to brief the management team on the changes they will face as a result of unionization.
a) What would you inform them are the key changes they can expect to see in terms of management and HRM practices?
b) The managers will likely be concerned about efficiency. How would you advise that they best ensure that profitability and productivity remains the same or improves?
2. Employees, some of whom supported the union and some of whom did not, may have many questions. Let’s assume that you and a Unifor representative hold a joint meeting with the players. What three or four changes would you highlight as they move to a collective employment relationship?