Tip Tuesday: 9 Tips for Costing a Collective Bargaining Agreement
March 01, 2022

A vital part of the negotiating process is understanding how a contract will affect your company’s bottom line. Here are 9 tips to remember when costing your CBA:

  • Start early - it takes time to build a strong costing model
  • Engage with experts and stakeholders within the company to understand the financial goals and limitations
  • Request and collect data necessary to build the model; keep a good record of the source of all data collected
  • Have a full understanding of the CBA and how any change will affect costs
  • Remember that one change can have a domino effect on one or more other areas of the CBA
  • Carefully develop the assumptions and be able to explain and defend them
  • Build the model to be as flexible as possible in order to add or modify proposals as negotiations progress
  • Determine if the model will be shared with the union counterpart; even if the model itself is not shared, be open and transparent in discussing assumptions and methodology used in building the model
  • Test the model extensively before putting it into practice
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