Most proposals across the bargaining table have some economic impact.  The difficulty is quantifying that impact in a consistent and defensible manner.

· How much will the wage increase cost?

· How much can be saved by switching the double-time provision from Sundays to the seventh working day?

· Are the potential savings in health care worth holding up the contract? 

The negotiator’s job is not done once the final contract is signed.  They must  justify the result to their principals.  A cost analysis of the final contract is indispensible for this.

If a final agreement is not reached, then the negotiator must justify the next step in the dispute resolution process, and once again a cost analysis is a central element.

For management teams, the most important number is the cost of the contract, which is built on the cost of each individual proposal.  These numbers are critical in determining the affordability of each proposal.

I provide a complete cost analysis of each proposal, identifying the assumptions, the data, the methodology, and conclude with a cost of the contract as a whole.

· What is the cost of an additional week of vacation, really?

Cost analysis of time off provisions are always tricky because it depends on the particular circumstances of the affected employees.  Will their time be replaced, if so how?  The cost of having existing employees work more overtime is one thing, the cost of hiring and training new employees is something else.  If time is not replaced, then how best value the lost productivity?

· How much is it worth to change work rules?

· What is employee turnover costing me?

Just as difficult is analyzing worker productivity and employee turnover.  But, these are fruitful areas for negotiations because they are not necessarily zero-sum games, meaning negotiations may result in gains for both union and management. 

· Which is more expensive, the proposed changes to night shift or weekend premium?

The ultimate reason for all of these cost analysis is to prioritize proposals.    Costs are critical in evaluating compromises.  Negotiators will not be able to know when, or how, to modify proposals without considering their relative costs.

This is where my years of experience bring a high value to negotiations.  At the beginning of analysis I can anticipate what areas of compromise are likely, and set up flexible cost models to quickly return results on alternate scenarios.

Skilled negotiators know how valuable it is to respond rapidly and decisively to counterproposals.  This builds or maintains momentum at the table, and results in a better contract.