habitual_hab
Registered User
Go Flames Go said:Which part of a cap restricts a market place, which part takes away negotiation of a cotract worth multimillion dollars, I don't see your point. We too own a business, we don't negotiate salaries, we have a cap on what we pay people so we know that we can keep running a succsefull business.
Stipulating a given wage in the (NHL)franchise agreement reduces the level of competition in the labor market (basically, when every franchise offers the same wage, or offers a wage up to a certain level, the competition in the labor market is reduced because there is an artificial restriction on the wages). This is absolutely and without a doubt a violation of the Sherman Anti-trust Act.
Any kind of restrictions on competition - in this case competition in the labour market) is made illegal unless it is passed through the collective bargaining process first.
For example, the 1994-95 MLB players strike didn't end until a federal judge ruled that the baseball owners engaged in unfair labour practices and could not unilaterally impose a salary cap on players.