Arbitration is a legal process in which two or more parties present their case to a third-party mediator, and the mediator makes a final decision that is binding on all parties involved. In baseball, arbitration is a process used to resolve salary disputes between players and teams. It is a system in which players and teams present their cases to a panel of independent arbitrators and the arbitrators decide the amount of money that should be paid to the player.
History of Arbitration in Baseball
The concept of arbitration in baseball dates back to the 1970s. At the time, Major League Baseball (MLB) was in the midst of a labor dispute and the owners wanted to limit the salaries of the players. The players, on the other hand, wanted to be able to negotiate for higher salaries. To help settle the dispute, the owners and players agreed to a system of arbitration.
Arbitration Process
The process of arbitration in baseball starts with the player filing a salary request, or “asking salary”, with the MLB. The team then has the option to either accept the player’s request or respond with a counter offer. If the two parties cannot reach an agreement, then the case is taken to an arbitration panel.
The arbitration panel consists of three arbitrators who are selected by the MLB and the Major League Baseball Players Association (MLBPA). The arbitrators listen to arguments from both sides and then make a decision. The arbitrators are bound by the rules of the Collective Bargaining Agreement (CBA) between the MLB and the MLBPA.
Impact of the Decision
Once the arbitration panel has made a decision, the team and the player must abide by it. The decision is binding and cannot be appealed. The team is required to pay the player the salary that was determined by the arbitrators.
If the player is unhappy with the decision, he or she can refuse to sign the contract or can request to be traded to a different team. However, the player cannot renegotiate the salary that was determined by the arbitrators.
Conclusion
In conclusion, arbitration is a legal process that is used to settle salary disputes between players and teams in Major League Baseball. The process involves a panel of independent arbitrators who listen to both sides of the argument and then make a binding decision. The decision of the arbitrators is final and cannot be appealed. This system of arbitration ensures that both the teams and the players have a fair and impartial hearing and that any salary disputes are resolved in a timely and equitable manner.