An Example of the Rael & Letson Approach
Before the collective bargaining agreements expired, the bargaining parties needed cash flow projections covering the period of time they believed the new bargaining agreement will cover. It was likely that the parties would have different initial goals for the bargaining process, but both needed timely and accurate estimates of future benefit costs in order reach an agreement.
A baseline cash flow projection was prepared covering the period of time requested by the parties. Both sides asked for different benefit scenarios. The costs or savings for each change were determined and then applied to the baseline cash flow projection to determine the impact. With these results, the parties met with their respective stakeholders, and they discussed this important part of their collective bargaining process. The parties also received cost estimates for alternatives changes to eligibility or benefits.
Because the bargaining parties were able to get timely and accurate information early in the bargaining process, they were able meet and resolve differences quickly. It was helpful to have the expertise of a third party to explain the different scenarios available and to offer assistance in selecting a compromise position. The benefits portion of collective bargaining went smoothly because of the preparation.