Ability to Pay Analysis

For various reasons, a company may request financial concessions from a labor organization. In these situations, MKA can analyze the company‘s records to determine the company’s ability to meet the financial requirements of the collective bargaining agreement. MKA analyzes the company’s financial statements, income tax returns, and other financial and non-financial records to obtain an understanding of the employer company’s financial position. The results of this analysis are discussed with the labor organizations representative and a determination is made as to whether the company requires financial concessions to continue its operations.

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