Originally from Fundamentals of Labor Arbitration

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8:01 INTRODUCTION

The interpretive process involves giving meaning to the words in the collective bargaining agreement. Rules of contract interpretation are applied during this process to determine the intent of the parties. Since the parties’ negotiators chose the words in the agreement to express their meaning, the words are the most important single factor in ascertaining the parties’ intent. When experienced negotiators drafted a collective bargaining agreement, the presumption is that they understood what they were doing.

8:02 PRIMARY RULES OF INTERPRETATION 

There are several primary rules of contract interpretation. They are as follows.

Plain Meaning Rule. It is frequently said that when the language in the parties’ agreement is “plain” or “clear and unambiguous,” effect must be given to the literal meaning of that language, without consulting other indicia of intent or meaning. This rule is sometimes referred to as the “plain meaning rule.” An arbitrator’s failure to issue an award that follows contract language found to be clear and unambiguous may result in the award being overturned (i.e., “vacated”).

The plain meaning rule has been criticized on the ground that the meaning of words varies with the circumstances and therefore should be interpreted in the context in which they are used, including the contractual context and the labor relations context. 

Ordinary and Popular Meaning. Another primary rule of construction says that words are generally given their ordinary and popular meaning in the absence of any indication that they were used in a different sense or that the parties intended some special meaning. However, technical terms should be given their technical meaning, unless the context or usage indicates a different meaning. In determining the ordinary meaning of a word in a collective bargaining agreement, arbitrators have frequently relied upon dictionary definitions of words.