Benefit Contributions For Out Of Town Work

Question: A contractor that is signatory to the Chicago Carpenters Union worked on a project outside of that Union’s jurisdiction. On the project, the firm used its own Chicago Carpenter Union employees. During construction, the firm continued to make benefit contributions to the Chicago Carpenters Union Fringe Benefits Funds for all hours worked by those carpenters. However, the Local Union Funds with jurisdiction in the area where the project was located, audited the contractor and demanded that benefit contributions be made to their Local Funds. Does the firm need to make these payments? 

 Answer: The contractor needs to first determine if it is signatory to a Carpenters labor agreement covering the location where the project is located. If so, benefits are generally to be paid to the “out-of-town” Union Funds. Such Funds may or may not have an agreement to reciprocate such payments to the employees’ “home funds.” Even if there is a reciprocity agreement there may be obligations to contribute to local union training and advancement funds that are included as a part of a reciprocity agreement. However, the Fox Valley Carpenters and Chicago Carpenters have agreed that fringe payments may be paid back to the “home local” for their respective members working in the other union’s jurisdiction under the “money follows the man” principle.