Surety Bond Encyclopedia

Wage & Welfare Bond - Northwest Ohio Plumbers & Pipefitters Local Union 50 in Ohio

Brief Summary

Signing with UA Local 50 means you owe fringe contributions for every hour your plumbers, pipefitters and service techs work, and the wage and welfare bond is how the local and its benefit funds know those payments will show up. Posting it lets you start man power requests without tying up cash in a deposit, and the bond is written to the amount the local gives you.

Contractors signatory to the collective bargaining agreement with Plumbers & Pipefitters Local Union 50 in Northwood, Ohio post this bond to guarantee payment of wages and fringe benefit contributions owed under that agreement. The penal sum is set by the local and its benefit funds, not by a state statute, so the required amount should be confirmed with Local 50 before the bond is written.

We can help with all Ohio bonds!

How to Apply for a Wage & Welfare Bond:

Get the required bond amount and the obligee name in writing from UA Local 50 or its fund office.
Have the contractor's legal entity name exactly as it appears on the signed Local 50 agreement.
Provide owner names, home addresses and Social Security numbers for the credit review.
Complete the bond application and review the quoted premium.
Pay the premium and receive the executed bond.
Deliver the original bond to Local 50 at 7570 Caple Blvd, Northwood, OH 43619, or as the local directs.

Detailed Information About the Ohio Wage & Welfare Bond:

Who posts this bond

UA Local 50 represents plumbers, pipefitters, welders and HVAC service mechanics in metropolitan Toledo and the surrounding northwest Ohio counties. Ohio's prevailing wage schedule for Local 50 covers Defiance, Fulton, Hancock, Henry, Lucas, Ottawa, Paulding, Putnam, Sandusky, Seneca, Williams and Wood counties. A contractor that signs the Local 50 agreement and employs members in that area is the principal on this bond. The local and its trust funds are the parties protected.

What the bond guarantees

A union contractor owes more than the hourly wage. The Ohio prevailing wage schedule for Local 50 breaks the package into health and welfare, pension, annuity, vacation and apprenticeship training contributions, each paid per hour worked into the funds. The wage and welfare bond backs those payments. If a contractor falls behind or closes with contributions unpaid, the funds can make a claim against the bond, and the surety then looks to the contractor to repay it.

Why the funds take this seriously

Federal law makes the contribution obligation enforceable. Under 29 U.S.C. 1145, every employer obligated to contribute to a multiemployer plan under a collectively bargained agreement must make those contributions on the agreement's terms. When a plan wins a collection suit, 29 U.S.C. 1132(g)(2) directs the court to award the unpaid contributions, interest, liquidated damages and attorney's fees. The bond gives the funds a faster source of payment than litigation.

How the amount is set

There is no state figure for this bond. Local 50 and its funds set the penal sum under the agreement, and it can depend on crew size, contractor history and how long the contractor has been signatory. Get the required amount and the exact obligee wording from the union hall before applying, so the bond is issued correctly the first time.

What it costs

You pay an annual premium, not the face amount. The surety prices it from the bond amount, the owners' personal credit, and the company's financial condition and time in business. Contractors with strong credit and a clean payment record pay the least.

Eligibility and Requirements for a Ohio Wage & Welfare Bond:

A signed collective bargaining agreement with Plumbers & Pipefitters Local Union 50.
Bond amount matching the figure the local or its funds require.
Obligee named exactly as Local 50 or its trust funds instruct.
Owner credit review. Larger bond amounts may call for company financial statements.
Continuous coverage for as long as the contractor remains signatory.

Ohio Wage & Welfare Bond FAQs:

How much is the Local 50 wage and welfare bond?

The amount is set by Local 50 and its benefit funds under the collective bargaining agreement, not by Ohio law. Ask the union hall at 419-662-5456 for the figure that applies to your company before you apply.

Which contributions does the bond cover?

It backs the wages and fringe contributions owed under the agreement. Ohio's prevailing wage schedule for Local 50 lists those fringes as health and welfare, pension, annuity, vacation and apprenticeship training.

What happens if a claim is paid on the bond?

The surety pays the funds up to the bond amount and then collects that amount back from the contractor and any indemnitors. The bond protects the funds and the members, not the contractor.

Does paying the bond premium replace my monthly contributions?

No. Contributions are still due every month under the agreement. The bond only guarantees that they will be paid. Federal law at 29 U.S.C. 1132(g)(2) adds interest, liquidated damages and attorney's fees when funds sue to collect late contributions.

Which counties does Local 50 cover?

Ohio's prevailing wage schedule for Local 50 lists Defiance, Fulton, Hancock, Henry, Lucas, Ottawa, Paulding, Putnam, Sandusky, Seneca, Williams and Wood counties.