How to Cost a Collective Agreement - L'Aspiratrice
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How to Cost a Collective Agreement

How to Cost a Collective Agreement

Collective bargaining is a process where employers and employees negotiate employment terms and conditions such as wages, benefits, and working conditions. When both parties agree on these terms, they sign a collective agreement.

In any collective bargaining process, it is important to know how to cost a collective agreement. Here are some steps to help you with the process:

1. Evaluate the Existing Collective Agreement

The first step is to evaluate the existing collective agreement. This helps you understand what is already in place and what needs to be changed.

You should look at all the clauses, such as salary, vacation, benefits, and working hours. You also need to know the duration of the existing agreement.

2. Identify the Issues

Once you have evaluated the existing collective agreement, you need to identify the issues. This can be done by looking at the demands of the employees` union or by conducting surveys on employee needs.

You should prioritize the issues based on their importance and urgency. This will help you determine which issues need to be addressed in the collective bargaining process.

3. Gather Data

After identifying the issues, you need to gather data to cost the collective agreement. You need to look at the financial statements of the organization, including revenue, expenses, and profit.

You should also look at the labor costs and the benefits provided to employees. You need to gather data on the current pay scales, benefits, and working hours.

4. Calculate the Cost

Once you have gathered all the necessary data, you need to calculate the cost of the collective agreement. This includes calculating the cost of salary increases, benefits, and any other changes that are being proposed.

You also need to calculate the cost of any changes that are being proposed. You should have a clear understanding of how these changes will affect the organization`s bottom line.

5. Negotiate

After calculating the cost of the collective agreement, you can now begin negotiating with the union. You should present the cost breakdown to the union and explain the impact of the proposed changes on the organization`s finances.

You should be prepared to negotiate and make compromises. Negotiations should be done in good faith and with the best interest of the organization and its employees.


Costing a collective agreement is an essential aspect of the collective bargaining process. It helps you understand the financial impact of proposed changes and helps you negotiate with the union effectively.

By evaluating the existing collective agreement, identifying the issues, gathering data, calculating the cost, and negotiating, you can ensure that the collective agreement is cost-effective and beneficial to both the organization and its employees.

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