Individual project #4 – Read Bargaining Strategy in Major League Baseball case in the learning materials section of the class portal and answer and give specific examples of key negotiation topics to the following questions:

1. What are the major developments in the history of the labor-management relationship within Major League Baseball?
2. What is “free agency?” How did the demise of the reserve clause and the rise of free agency in the 1970s fundamentally change the nature of labor-management relations in baseball? How is this related to the issue of a salary cap? Why were these issues still important to contract negotiations at the time of this case (2005-2006)? More generally, how does the history of a bargaining relationship affect current negotiations?
3. What is the “luxury tax”? How is it related to the issue of the salary cap?
4. What is the Sherman Anti-Trust Act of 1890? How is it relevant for companies and labor unions generally, and for MLB, specifically?
5. What “weapons” does the union have at its disposal in the 2006 contract negotiations?
6. Should Donald Fehr take a “hard line” in negotiations? Or should he be conciliatory toward the owners in light of either tough or conciliatory bargaining stances by the owners? How can one apply the findings from “prisoner’s dilemma” research to this case?
7. What issues should the union view as “top priority” issues (worth striking over)?

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