Surety Bond Encyclopedia

Wage and Trust Fund Bond - Bricklayers' Local Union No. 1 of Missouri in Missouri

Brief Summary

Masonry contractors signed with Bricklayers' Local 1 owe wages and contributions to six separate trusts every month. This bond puts a surety behind those payments so the union and the trustees are protected, and you meet their requirement with a premium instead of holding the full bond amount in reserve.

The Wage and Trust Fund bond for Bricklayers' Local Union No. 1 of Missouri guarantees that a signatory masonry contractor pays the wages and benefit contributions required by the Local 1 collective bargaining agreement. The money goes to the Local 1 Welfare Fund, Pension Trust, Supplemental Pension Plan, Vacation Trust and Apprenticeship and Training Trust, plus the Bricklayers and Trowel Trades International Pension Fund. Confirm the current amount and wording with the union before the bond is issued.

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How to Apply for a Wage and Trust Fund Bond:

Confirm your company is signed to the Local 1 agreement and note whether your work falls under the St. Louis or Cape Girardeau wage scale.
Ask Local 1 or the trust fund office for the bond amount, obligee wording and any required form.
Provide the legal business name and address exactly as they appear on the signed agreement.
Provide owner information for the surety's credit review.
Sign the indemnity agreement, pay the premium and receive the executed bond.
Deliver the original bond to the obligee before Local 1 members start on your jobs.

Detailed Information About the Missouri Wage and Trust Fund Bond:

Six trusts, not one fund

The most common mistake is treating this as a bond to a single welfare fund. Federal collection suits in the Eastern District of Missouri are brought by the trustees of six plans together: the Bricklayers Local Union No. 1 of Missouri Welfare Fund, Pension Trust, Supplemental Pension Plan, Vacation Trust and Apprenticeship and Training Trust, along with the Bricklayers and Trowel Trades International Pension Fund. Some suits also include the Masonry Institute of St. Louis. A shortfall to any of them is a default under the agreement.

The agreement behind the bond

The current Local 1 collective bargaining agreement runs from June 5, 2019 through May 31, 2029. Local 1 is part of the Bricklayers Administrative District Council of Eastern Missouri and publishes separate wage scales for St. Louis and Cape Girardeau. The agreement has its own article on the Mason Contractors Association (Article X), and Article XI covers hours of work, payment of wages and contributions.

Earlier versions of the agreement, quoted in Brown v. Town & Country Masonry and Tuckpointing, let the trustees examine a contractor's books and records to make sure benefit stamp purchases matched the agreement, and let the trusts sue the employer for delinquencies and penalties.

What the bond answers for

Under 29 U.S.C. 1145, an employer must make contributions on the terms of the plan and the agreement. If you fall behind, the trusts can recover the unpaid contributions, interest, liquidated damages and their legal fees. The bond lets them collect from the surety when the contractor cannot pay.

Amount and filing

The bond amount is set by the union or the trust funds under the agreement. Ask Local 1 or the trust fund office for the current amount, the exact obligee name and any required form before the bond is written. The surety sets the premium after reviewing owner credit and company financials.

Eligibility and Requirements for a Missouri Wage and Trust Fund Bond:

Bond in favor of Bricklayers' Local Union No. 1 of Missouri and the trustees of its benefit trusts, as the union directs.
Conditioned on payment of wages and contributions under the Local 1 collective bargaining agreement.
Contributions owed to six plans, including the Bricklayers and Trowel Trades International Pension Fund.
Books and records open to examination by the trustees.
Bond kept in force for as long as the union requires it.

Missouri Wage and Trust Fund Bond FAQs:

Which funds does this bond protect?

The Local 1 Welfare Fund, Pension Trust, Supplemental Pension Plan, Vacation Trust and Apprenticeship and Training Trust, plus the Bricklayers and Trowel Trades International Pension Fund. Those are the plans whose trustees sue together to collect unpaid contributions.

How long does the current agreement run?

The Local 1 agreement filed with the Labor Department covers June 5, 2019 through May 31, 2029. Payment of wages and contributions is covered in Article XI.

Does the bond cover work in Cape Girardeau?

Local 1 publishes a separate Cape Girardeau wage scale alongside its St. Louis scale. Tell the union where your jobs are and confirm the bond wording covers that work before it is issued.

How much is the bond?

The amount is set by the union or the trust funds. Get the current figure and the exact obligee name from Local 1 before you apply so the bond is written correctly the first time.

What happens if a contribution is late?

The trusts can sue under ERISA for the unpaid contributions, interest, liquidated damages and attorney's fees. If the contractor cannot pay, the trusts can claim against the bond, and the surety will look to the contractor to repay it.