Economic Environment

No negotiation takes place in a vacuum.  The local and national economic climate influences how any potential settlement is evaluated. 

The state of the economy is an elusive concept.  There are many variables involved, such as

· Cost of Living

· Unemployment

· Average Earnings

· Interest Rates

· Cost of Labor

· Stability of Employment

Understanding how each data set is generated and how the variables interrelate is only a beginning.  Each indicator has its own strengths and deficiencies that will influence interpretation.

· Can I compare the cost of employment with state and nationwide averages?

· The union is concerned about maintaining the standard of living for its members.  How is that determined?

The economic environment is the framework by which the success or failure of a contract is judged. 

Frequently negotiators will need to justify a contract to two different groups of people: Union leadership and their own principals.  Both groups will use completely different criteria for evaluating the same contract. 

I provide the appropriate economic context needed to evaluate labor contracts.