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GENERAL STANDARDS FORCONTRACT INTERPRETATION
LS-5 Contract Analysis 1
Clear and Unambiguous
LS-5 Contract Analysis
2
Language is clear and definite
Meaning determined without looking at other standards
Language means what it says
Past practice does not override – language speaks for itself
Example
LS-5 Contract Analysis
3
Contract language: “The company will provide required safety equipment.”
Company: It means it must make safety equipment available to purchase.
Union: The company has agreed to pay for the equipment
Specific Wording Weight
LS-5 Contract Analysis
4
Conflict between general and specific language
Specific language will govern
Presumes both parties examined the matter more closely
Therefore specific language given more consideration
Example – Specific Language
LS-5 Contract Analysis
5
Contract Language (general): The company shall continue to make reasonable provisions for the safety and health of its employees.
Same Contract (specific): Wearing apparel and other protective equipment necessary to protect employees from injury shall be provided by the company in accordance with practices now prevailing or as such practices may be improved from time to time by the company.
Question
LS-5 Contract Analysis
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Using language on last slide:
Is the company required to provide rain clothes to certain employees if this had not been before?
Express One Thing Excludes Another
LS-5 Contract Analysis
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If one item is mentioned and others are not generally means others were meant to be excluded.
Example Contract Language: “Safety glasses, hard hat, and gloves will be provided by the company to those working in yard classifications.”
Is someone in a yard classification entitled to have the company provide safety shoes?
Enumeration Limits
LS-5 Contract Analysis
8
General language follows a list of specific terms
Interpreted to cover only things of same nature
Example Contract: Seniority shall govern in all cases of layoff,
promotion, and transfers.
(same contract) Overtime shall be shared among employees within a given classification
If a senior electrician demanded overtime over a junior electrician, how would it be decided?
Words Judged by Context
LS-5 Contract Analysis
9
Words and phrases interpreted by the context in which they appear
Where words appear often determine what was meant
Example: 1.Holidays Worked: Holiday pay of eight hours
plus time worked at the applicable rate will be paid for holidays worked.
2. Holidays Not Worked: To be eligible for holiday pay, and employee must work the day before and the day after a holiday.
Holiday Pay Eligibility Question
LS-5 Contract Analysis
10
A worker was absent the day before a holiday, but worked eight hours on the holiday. If the company argued that the worker was not eligible for holiday pay, would it be correct?
Agreement Interpreted as a Whole
LS-5 Contract Analysis
11
The meaning of each sentence and each paragraph must be determined in relation to the contract as a whole
Sections or portions of the contract cannot be isolated from the rest of the contract and interpreted without regard to what the rest of the contract says.
All parts of the contract have some meaning, or they would not have been included in the contract.
Words Given Normal Meaning
LS-5 Contract Analysis
12
The ordinary and popularly accepted meaning and definition of words and phrases will be used unless something special was intended.
Contract Example: “Vacation pay shall be based on average
earnings.”
Question: An employee worked on two types of jobs. The employer based vacation pay on the average earnings of the lower rated job. Is this correct?
Standards Summarized.
LS-5 Contract Analysis
13
Clear and unambiguous Specific wording given greater weight To express one word is exclude another Enumeration limits general language to
the category of enumerated items Words will be judged by their context The agreement will be interpreted as a
whole Words will be given normal meaning