Employer Bonds. The Employer and the Union agree that within ten (10) days of the signing of this Agreement, the Employer will post a payroll bond or other form of security acceptable to the Board of Trustees to ensure the payment of fringe benefit contributions. The amount of the bond or other security must be equal to three months of the Employer’s average estimated monthly fringe benefit contributions during the previous calendar year or based on other evidence of projected work activity that the Board of Trustees deems reliable. In all cases the minimum amount of security required is $10,000, unless the Board of Trustees of the Southwest Multi-Craft Health & Welfare Trust Fund decides that another amount is appropriate. In that case, the amount determined by the Board shall automatically become a part of this Agreement. This provision for Employer Bonds does not apply to any Employer that (1) has made payment into the Southwest Multi-Craft Health & Welfare Trust Fund for a period of five years with no more than two months of delinquency, each of which was resolved with full payment to the Trust Fund; or (2) contributes to the Trust Fund through a national collective bargaining agreement; or (3) enters into a Project Labor Agreement for a project that is expected to last no more than 90 days. It also does not apply to employers who are participating Local Unions or their affiliated Joint Apprenticeship & Training Funds.
Employer Bonds. (A) Each Employer shall be required within one (1) week after becoming an Association member to deposit with the Trustees of the Employee Benefit Funds, excluding pension, either cash or a surety company bond or other acceptable security, in such for and amount as will be acceptable to the Trustees as security for the faithful performance by the Employer of those provisions of this Agreement relating to the payment of any Trust Fund contribution. Such security shall be not less than $200,000.00 for Association members and $300,000 for non- Association members unless a different amount is agreed to by the Joint Trade Board. The Trustees are hereby authorized to levy on such security deposit any sums found by them to be due from the Employer to all of the Employee Benefit Funds set forth in this Agreement, Local Union No. 806 and the Structural Steel Painting and Promotion Fund.
