By Josh Nadreau, of Fisher Phillips
To the surprise of many observers, minor league baseball players presented owners with more than 5,400 union authorization cards last August, and perhaps even more surprisingly, Major League Baseball promptly agreed to voluntarily recognize the union—avoiding a drawn-out proceeding before the National Labor Relations Board—just a few days later. As spring beckons across the country and ballparks emerge from their winter slumber, how will the minor leaguers’ union status impact America’s Pastime?
How Did We Get Here?
An MiLB players’ union was historically seen as unlikely as an undrafted free agent making it to Cooperstown. Despite what the players perceived as poor working conditions and substandard wages, for years the players seemed reluctant to “rock the boat” with major league owners given the players’ goals of making it to the big leagues. The late Marvin Miller, who lead the Major League Baseball Players Association (MLBPA) for 17 years, conceded as much in a 2012 interview with Slate: “The notion that these very young, inexperienced people were going to defy the owners, when they had stars in their eyes about making it to the major leagues—it’s just not going to happen.”
So what changed? Likely a confluence of events. In 2014, former Marlins’ prospect Aaron Senne filed a class action lawsuit in California alleging violation of the state and federal minimum wage and overtime laws. In response, MLB lobbied-for, and ultimately secured the passage of the “Save America’s Pastime Act,” which exempted minor league baseball players from the overtime provisions of the federal Fair Labor Standards Act. According to reports, this was strike three for the players. Not only were the major leagues not willing to make changes to player working conditions, but they were also willing to leverage allies in Congress to preserve the status quo.
Following this 2018 change, players began having conversations about improving working conditions. Over the next few years, players formed advocacy groups to help guide fellow players through the economic and other challenges associated with the lost 2020 season. Soon after, the major leagues announced the elimination of 40 minor league teams and a geographical realignment. These issues, along with a general resurgence of organized labor nationwide, proved to be the perfect storm for the minor leaguers—who announced their intent to unionize with the MLBPA in August 2022.
What Happened Next?
Under federal labor law, an employer presented with union authorization cards sufficient to constitute a majority of the proposed bargaining unit has two choices—to agree to a “card check” election where a neutral party counts the cards and certifies the result, or to require a secret ballot election conducted by the National Labor Relations Board. For most employers, requiring a secret ballot election is preferred. It allows employees to make an informed choice free of union coercion, instead of the common scenario of the union pressuring employees to sign authorization cards, often at home or during off hours.
The major leagues presumably assessed the likelihood of whether a secret ballot election would have made any material difference and declined to prolong the process. It is also possible that the current NLRB General Counsel’s intention of reviving a long-dormant doctrine known as Joy Silk played a role. Under Joy Silk, an employer presented with a union’s demand for recognition must show a good faith basis for rejecting the demand or face a bargaining order — without a secret ballot election.
What does this mean for my local AAA club?
With the major leagues voluntarily recognizing the MLBPA as the minor leaguers’ exclusive bargaining representative, the parties’ interactions are now governed by federal labor law. Most importantly, the law requires that the parties to bargain over the players’ wages, hours, or other terms and conditions of employment. Put simply—the owners cannot make unilateral changes to player pay, work rules, or even playing rules. All of these items need to be negotiated with the union first. According to reports, the players’ representatives have been meeting with the owners and had hoped to have a finalized collective bargaining agreement in place before the minor league season begins on March 31. What this agreement may include is still unknown, but we discuss a few likely items of note below:
Increased Wages: One of the primary issues raised by minor leaguers over the past several years is what they viewed as substandard salaries, especially for those players who may not have signed large signing bonuses when drafted. One would expect any new collective bargaining agreement to address perceived inequities and increase wages across the board. This may include higher minimum salaries, contractual overtime, or other financial inducements. How any agreement would apply to players across the different levels within minor league baseball and in several different jurisdictions remains unclear.
Housing: Minor league housing is also likely to be addressed, either through dedicated team facilities or through housing stipends. The players were able to court public opinion throughout their organizing efforts with reports of 5 or 6 players sharing apartments and even some players reporting sleeping in their cars.
Playing Rules: Perhaps most notable to fans—the owners will have to bargain with the players over future changes to playing rules. For several years, the minor leagues have been used to experiment with rule changes before they are implemented in the big leagues. These included rules making their major league debut this year—pitch clocks, larger bases, and bans on player shifts.
Other notable negotiation subjects will likely include health insurance, retirement, and full-time employment (minor leaguers currently get paid during the regular season only). On the other side of the table, it will be interesting to see how MLB intends to pay for any increases to player wages or benefits. Will MLB require the minor league owners to contribute? How will that impact ticket prices at minor league parks—one of the last places an average American family can watch professional sports at an affordable price? As we await word of a finalized collective bargaining agreement, one thing is certain—with more than 5,400 members, the minor league players represent one of the largest bargaining units in the United States, and it would be foolish to think that they will not leverage their numbers to effectuate significant changes throughout the minor leagues.
Josh Nadreau is a Boston-based partner at Fisher Phillips, one of the country’s largest labor and employment law firm representing management. His multipronged practice includes advising and representing clients in sports-related labor disputes as well as high-stakes litigation, including in class and collective wage and hour matters. Josh can be reached at jnadreau@fisherphillips.com.
