7.3.1 Tactics
You will need to determine which negotiation tactics best serves your purposes. Companies with low automation will want to control labor costs. They could offer the lowest acceptable wage, which is 80% of the current contract and eliminate all benefits. Companies with high automation might choose to be extremely generous with their workers, which will impose higher costs on their competitors (remember, labor looks at all offers and makes the highest offer part of their demand).
If a low wage/benefit tactic is employed, the labor turnover rate (and therefore recruiting costs) will increase. Also, if the Human Resource Module is activated, gains to the productivity index might be erased (see 7.2 Human Resources).
The Human Resources area automatically calculates Negotiation Ceilings that are 10% above the Starting Positions.
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Table 7.1 Example of a Negotiation Position and Resulting Strike Time: Note that the Annual Raise is 0% to 0%, this is because 110% of 0 is 0 |
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Starting Position |
Negotiation Ceiling |
Demand |
Contract |
Approximate Strike Days |
|
Hourly Wage |
$18.00 |
$19.80 |
$22.00 |
$20.90 |
15 |
|
Benefits |
$2,500 |
$2,750 |
$2,750 |
$2,625 |
0 |
|
Profit Sharing |
1.5% |
1.7% |
2.2% |
1.95% |
4 |
|
Annual Raise |
0.0% |
0.0% |
7.2% |
3.6% |
50 |
|
Total Days of Strike |
69 |
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