THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, December 23, 1994 TAG: 9412230559
SECTION: SPORTS PAGE: C1 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Medium: 89 lines
Baseball owners rejected the players' latest proposal Thursday night, declared an impasse in bargaining and voted to impose a salary cap.
``Due to the continued existence of this deadlock and the need to prepare for the 1995 season,'' management negotiator John Harrington said, ``the executive council today voted to exercise major league baseball's right under federal labor law to implement the clubs' final salary cap proposal, effective 12:01 a.m. EST, Dec. 23, 1994.''
The move eliminates salary arbitration and immediately creates a new group of 63 restricted free agents, including Jack McDowell, Jim Abbott and Marquis Grissom. It also eliminates many of the union's gains in collective bargaining during the past 23 years.
Union head Donald Fehr called the imposition ``preordained.'' Players struck Aug. 12 rather than accept a salary cap, wiping out the final 52 days and 669 games of the season. On Sept. 14, owners canceled the World Series for the first time since 1904.
``This is certainly a sad day,'' Fehr said. ``It's regrettable. I think the owners will come to regret it - sooner than they think.''
Owners already had postponed their deadline for implementation twice - from Dec. 5 to Dec. 15 to Dec. 22. On Dec. 15, they voted 25-3 to give the ruling executive council the authority to impose the cap if there wasn't a deal by Thursday.
``I reluctantly and very sadly have to say to you tonight that negotiations have broken off,'' mediator W.J. Usery said. ``It was very unfortunate that we have been unable to consummate an agreement. . . . Tonight there was no use to go any further.''
The next effort to restart the baseball talks could fall to former President Jimmy Carter, who offered to get involved if needed. Fehr also raised the possibility of a long court fight, saying, ``It may not even be halftime yet.''
``They measure every proposal up against a salary cap. And unless it measures as high as a salary cap, they don't want it,'' Fehr said.
Eugene Orza, the union's No. 2 official, had said any move to impose a cap would be challenged within 48 hours. Players will file an unfair labor practice charge with the National Labor Relations Board, asking the agency to seek a preliminary injunction in federal court.
The players' latest proposal included a progressive tax with rates of 10 and 25 percent. But Philadelphia Phillies co-general partner Dave Montgomery said the plan ``brings us no closer to the objectives we were talking about.'' He said the tax would total just $600,000 for all clubs.
Owners studied the proposal for six hours before rejecting it.
``The 25 percent marginal tax rate proposed by the union is an illusion,'' owners said in a statement. ``It kicks in at a payroll level that is $8 million more than any club has ever paid.
``Therefore, no club will be taxed at 25 percent in 1995 or in any year covered under the proposal. It is, quite frankly, an empty bag. The only other marginal tax rate in the union's proposal is just 10 percent. Only three clubs are at that level - and just barely,'' the owners said.
Earlier Thursday, Carter offered to get involved in the talks ``only if the present attempt to reach an agreement between the players and the owners is likely to be abandoned.''
Carter mediated the Camp David peace accord between Israel and Egypt and has been a high profile mediator this year, resolving the standoff between the United States and Haiti. Earlier this month, he was attempting to mediate between Bosnian and Serbian factions in the former Yugoslavia.
``The policy of the Carter Center is that our mediation services are available only when both parties genuinely want a settlement and desire us to be of assistance,'' the center said in a statement. ``We realize there is a superb mediator providing his services and we have full confidence that maximum efforts are already being made.''
Usery will report today to Labor Secretary Robert Reich, who appointed him Oct. 14.
In New York, the NLRB dismissed an unfair labor practice charge owners filed against players for threats against potential strikebreakers. Union officials had said statements by John Franco, Bobby Bonilla and Scott Kamieniecki didn't represent the union's views.
Owners have until Jan. 5 to file an appeal with the NLRB's general counsel in Washington. ILLUSTRATION: Color photo
The next effort to restart the baseball talks could fall to former
President Jimmy Carter, who offered to get involved if needed.
ASSOCIATED PRESS photo
Rockies chairman Jerry McMorris, left, and players union chief
Donald Fehr were unable to see eye to eye.
by CNB