Factors In Developing A Comprehensive Labor Agreement Cost Estimating And Tracking System

One of the major operating costs for any labor-intensive operation is that of its employees' wage and benefits package. Today's packages are extremely complex, with multiple pay rates for different grades and shifts, intricate bonus criteria, and expansive benefit packages that include all sorts of medical, dental, pension and other costs that can be "hidden" from direct examination and consideration. The problems of estimating the total cost of such a package to a company becomes even more acute at negotiation time, when pressure from both sides to settle intensify and changes to package offers come rapidly. A comprehensive system is needed that can evaluate these costs and perform sensitivity analyses, on the various components of an agreement so as to aid in the solving of major labor deadlocks, productivity problems, and cost impacts created by those agreements.