Before getting involved in such a program, however, carefully consider the program's goals, design and implementation. Poorly designed or badly implemented gainsharing programs are almost guaranteed to fail. Also consider the state of labor-management relations. If labor-management relations are poor, a gainsharing program is not likely to succeed. In such an environment, distrust and a lack of cooperation may doom gainsharing to failure.
Successful programs require labor-management cooperation in the work place.
Further, a fundamental element of cooperative ventures between labor and management is a strong and stable collective bargaining environment. The more balanced the power relationship between the union and the employer, the more likely it is that the program will be designed and implemented in good faith. Once the decision to participate in a gainsharing program is made, here are some considerations. Particular budgetary restrictions may affect gainsharing. Regulations may present a barrier to retaining any or all of the savings gained.