BARGAINING COSTS AND OUTCOMES IN MUNICIPAL LABOR RELATIONS

PAUL F. GERHART AND RICHARD KROLIKOWSKI

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DOI: 10.2190/1A2N-9A5A-2GW6-WPQR

Abstract

This paper examines the cost to management of the collective bargaining process (as distinguished from outcome costs) in four medium sized United States cities. The authors developed an instrument to measure direct and indirect costs for negotiations, preparation for negotiations, and the administration of collective agreements. The most surprising finding was the similarity of costs across cities of different size, different bargaining structures, and different forms of government. This suggests substantial economies of scale for municipal bargaining. Further, comparing bargaining expenditures with bargaining outcomes, the authors found no relationship between the amount spent by a city on the bargaining process and the quality (from a management viewpoint) of its labor agreements.

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