AI Coach’s Corner – Analyzing A Union Contract

As part of our continuing exploration of how AI tools like ChatGPT can be put to work in the labor relations field, we ran an exercise where we asked an AI tool called Claude to analyze a collective bargaining agreement. We used this tool because it handles longer documents better than ChatGPT at this point. For the exercise, we downloaded a recently negotiated CBA from the library at Cornell University, uploaded the pdf of the document into Claude, and then asked it to perform several different prompts. Here is what that looked like:

Prompt 1:  Summarize the key elements of this CBA

Here are the key points from the agreement:

• The agreement covers hourly employees at the facility, excluding certain positions like office staff, professionals, and supervisors.
• It establishes a union shop where employees must join the union after 30 days.
• The agreement sets forth wage rates, job classifications, seniority rules, grievance procedures, holidays, vacations, insurance benefits, and other standard terms.
• The initial term is April 1, 2023, to March 31, 2026.
• Wage increases include 5% in April 2023, 2% in April 2024, and 2% in April 2025.
• Employees get paid time off for holidays like Christmas, New Years, Memorial Day, etc. They also get vacation time, funeral leave, and jury duty leave.
• There are provisions for health insurance, retirement benefits, safety equipment reimbursement, and other benefits.
• Work rules cover issues like hours of work, overtime, temporary transfers, attendance policies, etc.
• There are commitments for no strikes or lockouts during the contract term. Disputes go through a grievance and arbitration process.
• It establishes the wages, benefits, and working conditions for union employees at the company’s facility over three years.

Prompt 2: Summarize the management rights clause

Here is a summary of the management rights clause in the agreement:

• The company retains all management rights and functions not expressly limited by the agreement.
• The company has discretion over business operations, workforce direction, hiring and staffing decisions, discipline, work methods and technology, suppliers and customers, facilities and equipment, etc.
• The company can establish reasonable work rules with advance notice to the union.
• After discussing with the union, the company can introduce new jobs or classifications, though pay rates can’t substantially differ from existing ones.
• The company can cease operations or transfer work out of the bargaining unit without violating the agreement.
• The union agrees the company has the right to take these actions at any time.
• The clause reserves broad managerial discretion for the company over the business, subject only to the specific limitations in the agreement. The union gave up bargaining over these core management rights.

Prompt 3: What are the current wage rates and increases by year?

Here are the current wage rates and wage increases outlined in the collective bargaining agreement:

Wage Rates:

The agreement establishes four job categories with corresponding minimum and maximum hourly wage rates:

• Category 1: $18.00 – $23.00
• Category 2: $19.00 – $26.00
• Category 3: $20.00 – $27.50
• Category 4: $28.00 – $35.00

Wage Increases:

The agreement provides the following wage increases:

• April 2023: 5% wage increase for all union employees
• April 2024: 2% merit wage increase for all union employees
• April 2025: 2% merit wage increase for all union employees

The actual wage rates depend on the employee’s job category and placement within the wage range for that category.

Prompt 4: Analyze the contract and suggest any needed improvements for the company

Here are some potential areas for improvement in the collective bargaining agreement from the perspective of the company:

• Attendance policy (Article 18) – The attendance point system may be too permissive. Consider tightening the policy to reduce unscheduled absences.
• Wage increases (Article 13) – The 5% increase in year 1, followed by 2% merit raises, seems high compared to current economic conditions. Propose lower raises.
• Vacation accrual (Article 19) – The vacation accrual scale is quite generous, especially for long-service employees. Look to cap vacation accruals.
• Holidays (Article 20) – Nine named holidays plus two floating holidays are above average. Try to eliminate the floating holidays.
• Contract duration (Article 25) – A 3-year term limits flexibility. Propose a shorter 1 or 2-year term.
• Temporary transfers (Article 15) – The 10-day cap on temporary transfers is restrictive. Propose loosening or eliminating the cap.
• Seniority (Article 10) – Broad seniority rights limit management discretion over promotions and transfers. Try to limit seniority rights.
• Job postings (Article 14) – Mandatory job posting removes management flexibility. Propose eliminating required postings.
• Management rights (Article 3) – Strengthen the management rights clause by limiting past practices claims.

Overall, the company should push for more flexibility over business operations through tighter attendance rules, reduced time off, lower wage growth, and limited seniority rights. The goal should be an agreement that preserves maximum management authority.