ARTICLE 8. Employer Employee Contributions
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1 ARTICLE 8 Employer Employee Contributions Section 1. The Employer agrees to contribute to the various funds for all employees covered by this Agreement from the FIRST day of employment, and all work performed thereafter by such employees. Section 2. It is agreed that monthly payment contributions required by this Agreement shall be made by the 15 th of each month to the Bank 1 One (or successor bank) for all hours worked the preceding month. It is further agreed that in the event the Employer fails to comply with the payment provisions contained in this Agreement, the Union shall have the right to strike the Employer to enforce the terms of monetary payment. In addition, the Employer shall be subject to the cost of collection charge in the following amounts: Default of payment for 5 to 15 days 5% of contribution Default of payment for 16 to 30 days 10% of contribution Default of payment for 31 to 60 days 12% of contribution Deposits which are delinquent more than 60 days shall be subject to interest at the rate of 18% per annum (1.5% per month) for the period of time the contributions remain unpaid. Section 2-A. All signatory Employer s shall report their contributions on forms provided by the Trustees of the Fringe Benefit Funds or on a mutually agreeable computer generated form. Reporting forms are required whether contributions are due or not. Failure to file timely could result in additional assessment of $ per report. Section 2-B. Monthly audits may be required of an Employer who uses a bogus company to pay employees in cash or check without submitting fringe benefit contributions to the Funds. A bogus company is an enterprise owned or controlled by a signatory Employer but without providing the Union the basic information required by Article 16, Section 5. The Cost of such audits will be borne by the Employer. Section 3. Any contributions received and date stamped by the Bank 1 One after the 20 th of the month and before the 30 th shall be considered delinquent and a cost of collection will be charged and billed for payment the following month. Any dispute regarding the above shall be resolved by the Trustees of Security Benefit Trust Fund, Pension Fund and Vacation/Holiday Fund and Joint Apprenticeship Fund, provided however, that payment of penalty is made prior to appeal. Section 4. After the 15 th day, any Employer in default shall not be permitted to have bargaining unit employees return to work until the Employer (1) has satisfied any and all outstanding claims for benefits for his employees as a result of this Agreement; (2) has paid the monthly payment(s) and cost of collection to date; (3) has complied with any other penalty assessed against him by the Trustees.
2 Section 5. All cost of collection charges levied and collected by virtue of the above section shall be distributed to the various funds covered by this Agreement in the same ratio and proportion as the rates of contribution to the Fund. Section 6. a) With regard to the Roofers Local 149 Pension Trust Fund, the Roofers Local 149 Security Benefit Trust Fund, the Roofers Local 149 Vacation/Holiday Fund and the Roofers Local 149 Joint Apprenticeship Fund, the Employer shall promptly furnish to the Union or its representatives or to the Trustees or their agents, on request, any and all records of its employees concerning classification of such employees, their name, Social Security numbers, amount of wages paid and hours worked, the company name and the bank payroll account number(s) that employee payroll checks will be drawn and any other payroll records and information that the Union or the Trustees may require in connection with the administration of the trust funds named above, and for no other purpose. The Union or its representatives or the Trustees or their agents may examine the payroll books and records of the Employer whenever such examination is deemed necessary or advisable by the Union or the Trustees in connection with the proper administration of the above-named Trust Funds. Example of such reports to be produced, include but may not be limited to: 1. Internal Revenue Forms 940, 941, W-2 s, W-3 s, 1099, 1096, payroll data and Workers Compensation records; 2. State of Michigan Form 1020; 3. Time cards and other payroll data; 4. Payroll and General Ledger; 5. Workers Compensation audits; 6. Any and all other records that may be applicable to the audit. b) The Trustees may require an audit of a new Employer within 90 days after commencement of work covered by this Agreement. A new Employer is an Employer who becomes party to this Agreement and who has not performed work under this Agreement or the prior Agreement between the Union and SMRCA. c) In the event the Employer does not comply with the provisions in Section (a) above within seventy-two (72) hours after having been notified by certified mail of the Union s or the Trustees desire to audit the Employer s books, the Union shall have the right to strike. d) In the event that the Employer has failed to make proper contributions to the trust funds named in paragraph (a) above, the Employer agrees to accept financial responsibility for the cost of the audit involved in discovering such shortage or discrepancy; any penalties as provided for in Article 8, Section 2 of this Agreement; and the cost to the Union or the Trustees of collection, including the attorney fees. e) In the event that the Employer does not make full payment of any shortage or delinquency in contribution payments or in the payment of liquidated damages and costs of collection including attorney fees, to the funds named in paragraph (a) above (within seven (7) days), the Union shall have the right to strike. f) In the event an Employer s contribution to the Fringe Benefit Funds does not meet the company s entire obligation, and a shortage occurs that is deemed uncollectable, any monies paid shall be applied first to 100% of the outstanding balance of the first below listed Fund, and continuing in such manner to each successive Fund until such contributions have been exhausted: 1. Vacation/Holiday Fund; 2. Pension Trust Fund; 3. Security Benefit Trust Fund; 4. Supplemental Insurance Fund; 5. Joint Apprenticeship Fund; 6. Roofing Industry Promotion Fund.
3 g) The Roofers Local 149 Vacation/Holiday Fund, Roofers Local 149 Pension Trust Fund, Roofers Local 149 Security Benefit Trust Fund, and Roofers Local 149 Joint Apprenticeship Fund shall be administered jointly by an equal number of representatives of the Employers and the Union, in accordance with the respective Agreements and Declarations of Trust pursuant to which they are established. Said Agreements and Declarations of Trust shall conform to all the requirements of law and copy of same together with any amendments thereto shall be considered as part of this Agreement as though they were set forth herein at length. Roofers Local 149 shall elect/appoint the Union Trustees, and the Southeastern Michigan Roofing Contractors Association shall elect/appoint the Employer Trustees to the Roofers Local Vacation/Holiday Fund, Roofers Local 149 Pension Trust Fund, Roofers Local 149 Security Benefit Trust Fund, and Roofers Local 149 Joint Apprenticeship Fund. h) Where the Union engages in strike activity to enforce the provisions of this Agreement, the Employer shall be obligated to pay up to five (5) working days wages and fringes at straight time per striking employee. Section 7. a) The Employer shall upon becoming a party to this Agreement, deliver to the Trustees of the Security Benefit Trust Fund and Pension Fund, on behalf of the Trustees of the Joint Funds, a surety bond in the amount set forth below. The bond shall be by an insurance or surety company authorized to do business in the State of Michigan in the form set forth as (a) below and in an amount in accord with the following: 1. If the Employer s principal place of business is outside the geographical area covered by this Agreement, the following bonding schedule shall be followed: i. If not more than an average of 1,000 straight time hours work per month is expected to be performed within the geographical area covered by this Agreement: $20, ii. If an average of more than 1,000 but less than 2,500 straight time hours work per month is expected to be performed within the geographical area covered by this agreement: iii. $50, If an average of more than 2,500 straight time hours work per month is expected to be performed within the geographical area covered by this Agreement: $100, If the Employer s principal place of business is within the geographical area covered by this Agreement, the following schedule shall be followed: i. If an average of not more than 1,000 straight time hours per month was reported during the preceding year: $10, ii. iii. If an average of more than 1,000 but less than 2,500 straight time hours per month was reported during the preceding year: $25, If an average of more than 2,500 straight time hours per month was reported during the preceding year: $50, b) When the number of straight time hours reported by the Employer for a period of three successive months exceeds the number of hours used for determining the amount of surety bond in accordance with the schedule set forth above, within fifteen (15) days of the end of such threemonth period. c) In the event that the Employer is unable to obtain a Surety Bond AT THE TIME OF SIGNING THIS AGREEMENT, the employer WILL furnish a cash
4 security deposit equal to the anticipated monthly fringe benefits but not less than $2,500.00, WITHIN 48 HOURS of signing this Agreement or losing its security bond, which shall be placed in the Local 149 Security Fund. Said account shall be jointly administered by the Trustees of the Local 149 Security Benefit Trust Fund and Trustees of the Local 149 Pension Fund. The account shall at all times be separate from all other accounts and shall never be commingled with accounts for any other purpose. Nothing in this paragraph shall preclude the Employer from substituting a surety bond for any cash security made under this section. In such event, the cash security deposit shall be returned to the Employer upon the presentation of the surety bond. d) In the event that the Employer has not obtained a Surety Bond or furnished a cash security deposit within 48 hours of signing this Agreement or losing its Surety Bond, the Union shall have the right to strike the Employer. e) A copy of the Employer s Surety Bond and any increases thereof, or written evidence of a cash security deposit if a Surety Bond cannot be obtained, shall be sent to the SMRCA offices 48 hours prior to the start of a job pursuant to this Agreement. Failure to supply this Bond to the SMRCA offices shall result in the removal of all eligible employees affected by this Agreement. f) In addition to the provision of Section 7 (h) below, the Employer shall provide the Union with a document which clearly states: 1. The full name of the surety company issuing the bond. 2. The address of the surety company issuing the bond. 3. The name and the address of the agent for the surety company issuing the bond for service of process. 4. The name of the local agent for the surety company issuing the bond. 5. The address of the local agent for the surety company issuing the bond. g) The Union reserves the right to reject the bond offered by an Employer if, it in its judgment, the surety has unreasonably refused to pay claims on any bond previously issued. h) The surety bond required by this Section shall be in the following form: SURETY BOND CONTRACT Bond No. We,, as Principal, and (Bonding Company Name), as Surety, are bound unto each of the following Funds and their trustees (hereinafter referred to as Obligee and/or Funds): 1. Roofers Local 149 Vacation/Holiday Fund 2. Roofers Local 149 Pension Fund 3. Roofers Local 149 Security Benefit Trust Fund 4. Roofers Local 149 Supplemental Health Insurance Fund 5. Roofers Local 149 Joint Apprenticeship Fund 6. Roofers Local 149 Roofing Industry Promotion Fund In the sum of Dollars ($ ). It is understood that the Principal employs various personnel who perform work as defined in the collective bargaining agreement between the Principal and Roofers Local No The collective bargaining agreement between those parties, among other things, provides for the payment of fringe benefit contributions to the various Funds, as well as liquidated damages, attorney fees, and other costs of collection for the inaccurate, incomplete, or untimely payment of the obligations set forth in that Agreement. The condition of this obligation is that if the Principal completely and timely complies with the provisions of the collective bargaining agreement regarding payment of all fringe
5 benefit contributions, liquidated damages, attorney fees and costs of collection, then this obligation is void and of no effect. However, should the Principal not completely and timely comply with the terms of the collective bargaining agreement regarding the payment of contributions, liquidated damages, attorney fees and costs of collection, then this obligation remain in full force and effect. It is agreed that this obligation applies not only to the Principal and Surety, but to their heirs, executors, administrators, successors and assigns, jointly and severally. It is further agreed that the obligee/funds are not bound by any notice provisions which may be contained in any other document submitted by the bonding company or any other statement issued by the Surety as the obligee/funds are bound only by the statute of limitations which applies under the law. This bond may be cancelled by the Surety giving no less than thirty days written notice to the obligee/funds of cancellation sent by registered/certified mail. Liability under this bond is effective for the period beginning and ending, however, liability under the bond may be continued by a Continuation Certificate signed by the Principal and the Surety. WITNESS: By: Principal (Company Name) By: Surety (Company Name) Attorney-in-Fact (Power of Attorney and Notarial acknowledgment of Surety to be attached.)
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