Labor deal secures peace through 2011
ST. LOUIS -- Major League Baseball and the players' union finalized a new collective bargaining agreement that will extend for five more seasons, the parties announced before last night's Game3 of the World Series.
"This is an historic agreement for Major League Baseball and is emblematic of the spirit of cooperation and trust that now exists between the clubs and players," commissioner Bud Selig said as he sat next to union chief Donald Fehr and others from both sides. "We are in the midst of baseball's golden age."
Selig and Fehr said talks they engaged in to work out the details of the World Baseball Classic last spring seemed to set the tone for the bigger conversations on the labor deal.
"The discussions were workmanlike, pragmatic, and while difficult on some issues, were conducted in a mutual attempt to get the job done," Fehr said.
The agreement, which runs through the 2011 season, must be ratified by both sides, which is considered a formality. It will mean an unprecedented 16 years of labor peace in the sport.
The deal continues, with minor changes, existing luxury tax and revenue-sharing rules. Reflecting $5.2 billion in revenue this season, the payroll threshold for the luxury tax increases from $136.5 million in 2006 to $148 million in 2007. It then goes up about 5 percent annually.
The penalties for going over the threshold will remain the same -- 22.5 percent the first time a team exceeds the threshold, 30 percent the second time, and 40 percent the third time.
Other notable provisions:
A signing deadline of Aug. 15 for all players selected in the amateur draft. Teams that fail to sign a first- or second-round pick "will receive the same pick in the subsequent draft as compensation."
Draft compensation for Type C free agents has been eliminated. There had been a movement to eliminate all compensation for free agents, but that would have hurt smaller-market teams who gain valuable draft picks for losing a big-name player.
The minimum salary will increase from $327,000 to $380,000 in '07 and rise to $390,000 in '08, and $400,000 in '09-11. Minor league minimum salaries will be $60,000 in 2007, $62,500 in 2008, and $65,000 in 2009.
The agreement eliminates the restriction that said teams could only re-sign their former players who became free agents by Dec. 7 (or Jan. 8 if offered salary arbitration) or else lose rights until May 1. Deadline for clubs to offer salary arbitration to their former players who became free agents is moved to Dec. 1 from Dec. 7. The deadline for players offered arbitration to accept offers is moved to Dec. 7 from Dec. 19. The new contract tender date is Dec.12, eight days earlier than in the past.
Nick Cafardo can be reached at cafardo@globe.com. 
