Issue
The Calgary Flames and the Edmonton Oilers
are both small-market teams. In order to help them survive, the
Government of Alberta imposed a game day tax of 12.5 per cent
on home and visiting hockey players. Money raised goes directly
back to the Oilers and the Flames. Fourteen American cities have
a similar tax, but the money generated goes back to municipal
general funds, not the clubs. As well, the U.S. players get tax
credits, while the Alberta players do not.
Players
In March of 2003, the NHLPA filed a grievance against the tax, alleging that it was "tremendously discriminatory," and asked that both the Oilers and the Flames owners withdraw their support of the tax. Joan Parker, the league arbitrator at the time, disagreed and denied the NHLPA's grievance.
The NHLPA sent a letter, which it said was a formal union grievance, to the NHL and the Alberta government in October, asking that the league and hockey clubs withdraw their support for the tax on the money hockey players will make while playing in Alberta.
The tax, which has been collected since the start of the 2002 season, hits the Oilers and Flames players hardest, because they play half their games on home ice. Earlier, NHLPA senior director Ted Saskin said the tax was unfair because it takes from players a portion of their wages that owners couldn't get through collective bargaining in 1994 and 1995, and gives the money back to the owners.
"We know of no situation where a private company can go to a government to effectively get their wage bill reduced, which is what has happened here," Saskin said. "This is taking money from an employee and sending it right back to his employer. It basically changes what the employer and employee have agreed to on their wage contract."
The NHLPA sent a letter, which it said was a formal union grievance, to the NHL and the Alberta government in October, asking that the league and hockey clubs withdraw their support for the tax on the money hockey players will make while playing in Alberta.
The tax, which has been collected since the start of the 2002 season, hits the Oilers and Flames players hardest, because they play half their games on home ice. Earlier, NHLPA senior director Ted Saskin said the tax was unfair because it takes from players a portion of their wages that owners couldn't get through collective bargaining in 1994 and 1995, and gives the money back to the owners.
"We know of no situation where a private company can go to a government to effectively get their wage bill reduced, which is what has happened here," Saskin said. "This is taking money from an employee and sending it right back to his employer. It basically changes what the employer and employee have agreed to on their wage contract."
Owners
The Flames and Oilers are in favour of the tax as it obviously benefits them.
The NHL is also in favour of the tax.
"We're pleased with the arbitrator's decision," said Bill Daly, the NHL's executive vice president and chief legal officer. "She found it to be a relatively simple case on the merits, which is what we contended all along. Neither the National Hockey League nor either of the Alberta clubs did anything which was in violation of our obligation under the collective bargaining agreement."
The NHL is also in favour of the tax.
"We're pleased with the arbitrator's decision," said Bill Daly, the NHL's executive vice president and chief legal officer. "She found it to be a relatively simple case on the merits, which is what we contended all along. Neither the National Hockey League nor either of the Alberta clubs did anything which was in violation of our obligation under the collective bargaining agreement."