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Labor Management
Economic Cost Model Tools
Cowden Associates’ involvement in the negotiations process can also extend to the preparation of an economic costing model. Our models utilize historical demographic and cost information to illustrate the total economic impact of any company and/or union proposals. The model details the costs expressed as total dollars, cost per hour and cost per equivalent unit. The benefit: this arrangement provides a single-source of economic information with a detailed breakdown of each component of cost (e.g. base wages, overtime pay, premium pay, holiday pay, vacation pay, and health, benefit, and retirement plans). The following is a brief review of the process:
- Request and gather all necessary detailed information to construct a labor cost model
- Design model(s), including assumptions for the future
- Present costing alternatives to management
- Evaluate cost of changes in the program