Economic Experts

Differences between Economists and Accountants

It has become increasingly important for unions to have an expert on their contract negotiation team and at their interest arbitration hearings. Municipalities have become more stringent in how they allocate their funds and regularly go to great lengths to avoid offering fair contracts. Having the right expert will neutralize their efforts and will help your union obtain a significantly better contract.

Economists and accountants both offer valuable financial expertise. While there is much overlap between the two professions, there are key differences.

Accountants prepare financial records and ensure that municipalities are compliant with the applicable laws and regulations. They are highly skilled and often have the title of Certified Public Accountant or have an MBA. In terms of interest arbitration hearings, accountants may analyze revenues and expenditures and offer an opinion on the municipality’s financial position.

Economists perform many of the same tasks as accountants, but also conduct research on the economy and analyze how economic conditions impact a municipality’s finances. Economists study wage growth, inflation, unemployment, interest rates, business cycles, and many other issues that can influence interest arbitration awards. PhD economists also receive advanced training in statistics which allows them to offer credible testimony on economic forecasts and other empirical relationships that assist in receiving a better award. For example, lower salaries tend to be associated with higher attrition rates. An economist can offer statistical evidence supporting this claim. Furthermore, an economist can clearly articulate this relationship and the procedures used to arrive at this conclusion.

Assembling the appropriate team of experts is critical and can greatly impact the outcome of your contract negotiations and interest arbitration.