Table of Contents
The Collective Bargaining Process:
Preparing for and Negotiating a Collective Bargaining Agreement
TAB 2 Introduction to Model Collective Bargaining Agreement
TAB 3 Model Collective Bargaining Agreement (Construction)
TAB 4 Explanation and Analysis of the Model Collective Bargaining Agreement
TAB 5 Notes
TAB 3 TAB 4
Model Contract Explanation
Article I Recognition 3 1
Scope of Bargaining Unit
Article II 3-4 1-2
and Work Jurisdiction
Article III Out-of-Area Jurisdiction 4-5 2-3
Article IV Union Security 5 4
Dues and Administrative Fees
Article V 5-6 4-5
Article VI Function of Management 7 6
Article VII Efficiency of Operations 7 6
Article VIII 7-8 6-7
Enhancing the Ability of Signatory
Article IX Employers to Be Competitive When 8 7
Bidding on “Prevailing Rate Work”
Article X No Strikes/No Lockouts 8 8
Article XI Dispute Resolution 9-13 9-11
Article XII Exclusive Hiring Hall 13-16 11-12
Article XIII Apprentices 16-17 13-14
Article XIV Journeyperson Wages 17-19 14-15
Table of Contents (Cont.)
TAB 3 TAB 4
Model Contract Explanation
Article XV Apprentice Wages 19 16
Article XVI Payment of Wages 19-20 16-17
Work Day and Work Week:
Article XVII 20-21 17-19
Overtime and Shift Premiums
Article XVIII Breaks and Clean-up Time 21-22 19
Article XIX Holidays 22 20
Article XX Reporting Pay 22 20-21
Article XXI Travel Pay 22-23 21-22
Contributions to the IUPAT
Article XXII Industry Pension Fund, the FTI, 23-25 22-24
the PAT Fund and the LMCI
Contributions Through Voluntary
Article XXIII Deductions to the IUPAT-PAT-PC 25-26 25
Contributions to District Council
(or Local Union) Welfare, Pension,
Article XXIV 26-27 26
Apprenticeship (or Other Fringe
Article XXV Job Stewards 27-28 26-28
Article XXVI Union Rights 28 26-28
Article XXVII Preservation of Work 29 28-30
Article XXVIII Subcontracting 29-30 30
Article XXIX Safety 30-31 31
Article XXX Journeyperson Upgrade Training 31 32
Article XXXI Miscellaneous Terms and Conditions 31-33 33-39
Discrimination 31 33
Table of Contents (Cont.)
TAB 3 TAB 4
Model Contract Explanation
Entry Level Journeyperson 32 33-34
Union Right to Verify Compliance by
Signatory Contractor with Provisions 32 34-35
and Obligations in this Agreement
STARS Program 32 35
Bonding 33 35-36
Workers Compensation Insurance
& ADR Programs
Flexibility to Modify Agreement
Article XXXII 33 40
to Expand or Recover Work
IUPAT and Finishing Contractors
Article XXXIII Association Not a Party to the 33-34 41
Collective Bargaining Agreement
Article XXXIV Successors 34-35 42
Article XXXV Supremacy Clause 35 42
Article XXXVI General Savings Clause 35 43
Article XXXVII Duration Clause 35-36 43-44
THE PAINTERS AND ALLIED TRADES
LABOR MANAGEMENT COOPERATION INITIATIVE
Preparing for and Conducting
Negotiations in a
PAINTERS AND ALLIED TRADES
INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES
LABOR MANAGEMENT COOPERATION INITIATIVE
1750 New York Avenue NW, 8th Floor
Washington, DC 20006
The Model Collective Bargaining Agreement has been prepared by the Painters and
Allied Trades Labor-Management Cooperation Initiative, a joint effort by the Finishing
Contractors Association (“FCA”) and the International Union of Painters and Allied Trades,
AFL-CIO, CLC (“IUPAT”). It is fully recommended and endorsed by all parties. The Model
Agreement has three principal objectives: industry peace, industry growth, and industry partner-
Industry peace requires stable relationships between IUPAT affiliates and Employers.
Where both the Employers and the Union are committed to a long-term relationship, they will
find it easier to overcome minor irritations. The LMCI, FCA and IUPAT thus recommend
recognition clauses that encourage such stability. Beyond that, in our increasingly mobile indus-
try, uniform conditions are essential. Such provisions will minimize misunderstandings and dis-
putes because employers and employees both will understand what is expected of them wher-
ever they are working. Following the model suggested herein can help achieve such uniformity.
Industry growth requires training and efficient practices that enable IUPAT signatory con-
tractors to hire quality journeypersons to effectively compete and to increase their market
share. An increased market share will translate directly into additional work opportunities and
better compensation for IUPAT members. For this reason, the LMCI, FCA and IUPAT propose
model clauses that encourage and reward continuing education, promote innovation, take
advantage of technology, and demand a fair day of work in exchange for good Union wages and
Industry prosperity means working together to create a better future for Union members,
Union contractors, and the families of both. Labor-management bargaining is no different from
any other contract negotiation. The goal is for both parties to reach a contract that is mutually
beneficial. Union members want and deserve safe working conditions, affordable healthcare,
safe and adequate pensions, and a wage that allows a family to live comfortably. Union
Employers want and deserve a workforce that shows up on time, is well trained, works diligent-
ly, and provides the customer a quality product.
The model provisions that follow can help achieve these goals. They are crafted to create
stability, to encourage growth, and to achieve prosperity for employers and employees. Of
course, the LMCI, FCA and IUPAT do not have all the answers. If your local Agreement is
already achieving these goals, we are not advocating a fix for a relationship that is not broken.
However, even if your agreement does not require substantive changes, it is recommended that
you format your construction collective bargaining agreement as closely as possible to the for-
mat contained in this Model Collective Bargaining Agreement. This will allow employers, union
representatives, and members to reference areas of all agreements easily, regardless of the geo-
graphic area. In addition, all clauses that effect economics will be in the same places in all Agree-
ments, which will make it easier for employers to obtain the information they need in order to
The LMCI, FCA and IUPAT urge all District Councils, Local Unions, and local Employer
Associations and Signatory Contractors to consider these suggestions carefully, and to adopt the
provisions of this Model Agreement. It reflects a careful balance of the interests that are criti-
cal to both parties to a contract. For example, it incorporates strong language to protect the
District Council’s or Local Union’s legitimate interests in preserving work for its members, and
to prevent circumvention of the Agreement by unfair employers. In exchange, the Agreement
gives the Employer significant tools to allow it to bid competitively, to maintain a skilled, pro-
ductive, and safe workforce, and to effectively conduct its operations in a market that is often
marked by increased nonunion competition. The Agreement was negotiated to be just that—a
complete agreement—and this balance may be maintained only if the entire agreement is put
to use. It should be viewed in this fashion during local negotiations.
A James A. Williams
A Edward Z. Zaucha
MODEL COLLECTIVE BARGAINING
FOR THE FINISHING INDUSTRIES
INTERNATIONAL UNION OF PAINTERS AND
ALLIED TRADES, AFL-CIO, CLC
THE FINISHING CONTRACTORS ASSOCIATION
This Agreement is made and entered into this _______ day of ______________, 20_____ ,
by and between __________________________ (name of contractor or contractor’s association)
hereinafter referred to as the Employer (or, if agreement is with an Association, use “here-
inafter referred to as the Association”), and __________________________________________
(name of District Council or Local Union) affiliated with the International Union of Painters
and Allied Trades, AFL-CIO, CLC (IUPAT), hereinafter referred to as the Union.
The Employer hereby recognizes IUPAT District Council _____ [or Local Union _____]
(“the Union”) as the sole and exclusive bargaining representative, within the meaning of
Section 9(a) of the National Labor Relations Act (“the Act”), of all full-time and regular part-
time employees employed on all present and future job sites within the jurisdiction of the
Union. Such recognition is predicated on the Union’s demand for recognition pursuant to
Section 9(a) of the Act, and on the Union’s presentation of a clear showing that the majority of
employees in the bargaining unit are members of the Union and desire the Union to act as their
exclusive representative within the meaning of Section 9(a) of the Act. The Employer acknowl-
edges that it has reviewed the Union’s showing and agrees that it reflects the employees’ desire
to be represented by the Union under Section 9(a) of the Act.
Scope of Bargaining Unit and Work Jurisdiction
This Agreement shall apply to all employees performing the work of journeypersons or
apprentices in the classification of “painter” for the Employer. In addition, whether or not
specifically referenced herein, this Agreement also applies to all employees performing any
trade jurisdiction work identified and described in this Article.
Within the meaning of this provision, the work of the “painter” will include, but not be lim-
ited to: (1) preparation, application and removal of all types of coatings and coating systems in
relation to all painting, decorating, protective coatings, coating and staining of concrete floors
and toppings, waterproofing, masonry restoration, fireproofing, fire retarding, metal polishing,
refinishing, sealing, lining, fiberglassing, E-glass fiberglass, carbon fiber, encapsulating, insulat-
ing, metalizing, flame spray, the application of exterior insulating finishing systems; (2) each and
all such applications, and similar or substitute applications, on all surfaces, interior and exterior,
to include, but not be limited to: residences, buildings, structures, industrial, power, chemical and
manufacturing plants, bridges, tanks, vats, pipes, stacks, light and high tension poles, parking, traf-
fic and air strip lines, trucks, automobile and railroad cars, ships, aircraft, and all machinery and
equipment; (3) any and all material used in preparation, application or removal of any paint,
coatings or applications, including, but not limited to: the handling and use of thinners, dryers,
sealers, binders, pigments, primers, extenders, air and vapor barriers, emulsions, waxes, stains,
mastics, plastics, enamels, acrylics, epoxies, epoxy injection and T-lock welding, alcalyds, sheet
rubber, foams, seamless and tile-like coatings, etc.; (4) all preparation for and removal of any and
all materials for finishes, such as deep cleaning, patching, all levels of finishing, taping/finishing,
skimcoating, pointing, caulking, high-pressure water, chemical and abrasive blasting, environ-
mental blasting, wet/dry vacuum work, chemical stripping, scraping, air tooling, bleaching,
steamcleaning, asbestos and lead abatement/removal; (5) the inspection of all coatings and/or
coating systems during their applications will be performed by the painter.
[NOTE: IF THE AGREEMENT IS INTENDED TO APPLY TO OTHER CLASSIFICA-
TIONS AS WELL, FOR EXAMPLE, DRYWALL FINISHERS, GLAZIERS, ETC., SIMI-
LAR LANGUAGE DEFINING THE WORK OF THOSE CLASSIFICATION SHOULD
ALSO BE INCLUDED. DESCRIPTIONS OF ALL WORK CLASSIFICATIONS ARE
CONTAINED IN SECTION 6 OF THE IUPAT CONSTITUTION.]
The geographic jurisdiction of the Union party to this Agreement is __________________
(insert geographic jurisdiction of District Council or Local Union)
Section 1. The Contractor or the Employer party to this Agreement, when engaged in
work outside the geographical jurisdiction of the Union party to this agreement, shall employ
not less than fifty percent (50%) of the workers employed on such work from among the resi-
dents of the area where the work is performed, or from among persons who are employed the
greater percentage of their time in such area; provided that the first employee on any such job
or project shall be selected by the Employer from any geographic jurisdiction.
Section 2. The Employer party hereto shall, when engaged in work outside the geo-
graphic jurisdiction of the Union party to the Agreement, comply with all of the lawful clauses
of the Collective Bargaining Agreement in effect in said other geographic jurisdiction and exe-
cuted by the Employers of the industry and the IUPAT affiliated Local Unions in that jurisdic-
tion, including, but not limited to, the wages, hours, working conditions, fringe benefits, and pro-
cedure for settlement of grievances set forth therein; provided, however, that where no affiliat-
ed Union has a current effective Agreement covering such out-of-area work, the Employer shall
perform such work in accordance with this Agreement; and provided, further, that as to employ-
ees employed by such Employer from within the geographic jurisdiction of the Union party to
this Agreement and who are brought into an outside jurisdiction, such employees shall be enti-
tled to receive the wages and conditions including fringe benefits effective in either the home or
outside jurisdiction, whichever are more favorable to such employees. In situations covered by
the last proviso, fringe benefit contributions on behalf of such employees shall be made solely
to their home funds in accordance with their governing documents, and the difference between
the wages and benefit contributions required by the away funds and the home funds, if any, shall
be paid to the employees as additional wages. This provision is enforceable by the District
Council or Local Union in whose jurisdiction the work is being performed, both through the
procedure for settlement of grievances set forth in its applicable Collective Bargaining
Agreement and after exhaustion of those procedures, through the Courts, and is also enforce-
able by the Union party to this Agreement, both through the procedure for settlement of griev-
ances set forth in this Agreement and after exhaustion of those procedures, through the Courts.
All present employees who are members of the Union on the effective date of this
Agreement or on the date of execution of this Agreement, whichever is the later, shall remain
members of the Union in good standing as a condition of employment. All present employees
who are not members of the Union and all employees who are hired hereafter shall become and
remain members in good standing of the Union as a condition of employment on and after the
eighth (8th) day following the beginning of their employment, or on and after the eighth (8th)
day following the effective date of this Agreement or the date of execution of this Agreement,
whichever is later.
The provisions of this Article shall be deemed to be of no force and effect in any State to
the extent to which the making or enforcement of such provision is contrary to law. In any State
where the making and enforcement of such provision is lawful only after compliance with cer-
tain conditions precedent, this Article shall be deemed to take effect as to employees covered
by this Agreement immediately upon compliance with such conditions.
In those instances where this Article may not be validly applied because of such State law,
the Employer agrees to recommend to all employees that they become members of the Union
and to refer new employees to the Union upon hiring. In addition, the Employer party hereto
agrees to provide the names and addresses of all employees hired by the Employer to the Union
within five (5) days of their hire.
Dues and Administrative Fees Checkoff Provision
(1) Every Employer signatory to this Agreement hereby agrees to deduct from the wages
of any employee employed by such Employer during the term of this Agreement administrative
dues in the amount specified in the Union’s bylaws and to remit said amount to the Union in
the following manner:
a. The Union will notify the Employer in writing of the amount of administra-
tive dues specified in the bylaws, and will submit to the Employer a copy of
the bylaws or the applicable bylaw provision.
b. For each payroll period, the Employer will deduct from the wages of each
employee the amount specified in the bylaws based on the number of hours
worked during said payroll period, and will accumulate said deductions to
the end of the month.
c. On or before the _____ day of each month, the Employer will remit to the
Union the entire amount of administrative dues due and owing as to each
employee for the month previous, together with a list of employees covered
hereby and the number of hours worked by each during the applicable
(2) When a signatory Employer performs a job within the jurisdiction of a union affiliat-
ed with the IUPAT other than the Union signatory hereto and the bylaws of that other union
contain a provision for administrative dues or business representative (or Business Manager)
“assessment,” the Employer shall check off from the wages of employees covered by this
Agreement and employed on that job administrative dues or business representative/ Business
Manager “assessment” in the amount stated in that other union’s bylaws, and shall remit said
amount to that other union. In that event, that other union shall be acting as agent of the signa-
tory Union for the purpose of policing and administering this Agreement. In performing the
checkoff, the procedure specified in Section (1) a-c will be followed, except that it shall be the
responsibility of said other union to notify the Employer in writing of the amount of adminis-
trative dues or business representative/Business Manager “assessment” specified in its bylaws,
and to submit to the Employer a copy of the bylaws or the applicable by-law provision. When
the signatory Employer performs a job within the jurisdiction of a union affiliated with the
IUPAT other than the Union signatory hereto, and the bylaws of that other union contain no
provision for administrative dues or business representative/Business Manager “assessment,”
the Employer shall continue to be bound by Section (1).
(3) The obligations of the Employer under Sections (1) and (2) shall apply only as to
employees who have voluntarily signed a valid dues deduction authorization card.
(4) At the time of the employment of any employee, the Employer will submit to each
such employee for his voluntary signature a dues deduction authorization card in triplicate, one
copy to be retained by the Employer, one copy retained by the employee, and the third returned
to the Union, the form to be supplied to such Employer by the Union.
(5) On or before the tenth (10th) day of each month, the Employer will submit to the
Union a list of all employees covered by the Agreement who have not signed a dues deduction
authorization card, together with the number of hours worked by each such employee during
the month previous.
Function of Management
Section 1. Except as limited by this Agreement, the Employer shall have the right to:
plan, direct, and control all its work; hire employees; direct the working forces in the field; assign
employees to their jobs; direct and assign work to employees; determine the number of employ-
ees to be employed; discipline for just cause (just cause for discharge includes but is not neces-
sarily limited to incompetence, insubordination, habitual tardiness or absenteeism, safety viola-
tions, and participation in unauthorized work stoppage or slowdown); transfer employees; lay
off employees because of lack of work or for other legitimate reasons; require employees to
observe the Employer’s and/or contracting entities’ rules and regulations that do not conflict
with this Agreement; regulate the amount of equipment used and the use of equipment and
other property of the Employer; require the observance of applicable government regulations
and safety standards; maintain reasonable standards of production and quality of work; and
decide upon methods, equipment, and procedures to be used in the performance of all work cov-
ered by this Agreement; provided, however, that the Employer will not use its rights for the pur-
pose of discrimination against any employee.
Section 2. The Employer and the IUPAT recognize the necessity of promoting efficiency
and agree that no local rules, customs, or practices shall be permitted that limit production or man-
power required to do the work, and that no limitations shall be placed on the amount of work that
an employee is performing during the work day. No regulations of tools shall be interpreted or
enforced in any way to prevent their use provided that all safety regulations are satisfied.
Efficiency of Operations
Since achieving greater efficiency in all aspects of the Employer’s work is deemed appropri-
ate and necessary, the District Council (or Local Union) shall encourage employees to perform
their duties on behalf of the Employer and accomplish desired results in as efficient and produc-
tive a manner as possible. There shall be no restrictions as to the amount of work an employee
shall do during scheduled working hours. Nor shall there be any restriction as to the use of labor-
saving machinery or devices in any aspect of the work that may be assigned by the Employer.
Drug-Free and Alcohol-Free Workplace
Section 1. The Employer shall have the right to institute, maintain, and require obser-
vance of a fair and consistent Drug and Alcohol Policy.
Section 2. The parties to this Agreement recognize the need to provide and maintain a
drug-free and alcohol-free workplace. Each party agrees that it will comply with any customer-
mandated substance abuse program. Further, all employees shall be bound, as a condition of
employment, by the rules and provisions of any such substance abuse program, which may
include the following types of testing: pre-employment, reasonable suspicion, post-incident, and
random where allowed by law.
Section 3. All substance abuse programs, rules, or regulations shall be submitted to the
Union for review prior to implementation by the Employer.
Enhancing the Ability of Signatory Employers
to Be Competitive When Bidding on “Prevailing Rate Work”
Section 1. On a project where government prevailing wage and/or fringe benefit rates
apply, the Employer will pay the greater of either the posted prevailing wage and fringe benefit
package for the project or the applicable wage and fringe benefit package for the project set
forth in this Agreement. Such wage and fringe benefit package shall be the one in effect at the
time the project is bid, unless other provisions in the bid specifications or in any project-specif-
ic agreement require higher payments. Such wage and fringe benefit package shall remain in
effect throughout the duration of the project and such wage and fringe benefit package shall not
be subject to increases that may otherwise be set forth in this Agreement; provided, however, if
contribution increases occur in relation to the Health and Welfare Fund during the term of the
project, the Employer shall be required to pay such additional amounts.
Section 2. When the Department of Labor or any other government agency, federal or
state, conducts a wage survey for prevailing wage information, the Employer will provide all
necessary and pertinent information, including, but not limited to, job listings, man hours, wages,
fringe benefit amounts and contributions and any other information needed to complete the
No Strikes/No Lockouts
During the term of this Agreement, and any extensions thereof, the District Council (or
Local Union) shall not authorize, encourage or participate in any strike, work stoppage, or slow-
down or otherwise interfere with the performance of work by the Employer’s employees, except
in circumstances otherwise permitted in this Agreement. The Employer shall not, in any man-
ner, threaten or cause a lockout of its employees during the term of this Agreement, or any
[NOTE: THIS PROVISION SHOULD BE USED FOR CONSTRUCTION AGREEMENTS
BETWEEN A DISTRICT COUNCIL OR A LOCAL UNION AND AN EMPLOYER
ASSOCIATION AND FOR AGREEMENTS WITH INDEPENDENT EMPLOYERS IN
AREAS WHERE A DISTRICT COUNCIL (OR LOCAL UNION) HAS AN ESTAB-
LISHED AGREEMENT WITH AN ASSOCIATION]
1. The Union and the Association shall establish and maintain a Joint Trade Board com-
posed of six members, three appointed by the Union and three appointed by the Employer. Four
members, two appointed by each party, shall constitute a quorum. Decisions shall be made by
majority vote, provided that Union appointees and Employer appointees have equal voting
strength with respect to such vote. Members of the Joint Trade Board shall choose a chairman
and secretary, to serve such terms as may be agreed upon by the Board, provided that one such
officer is a Union appointee and one an Employer appointee.
2. The parties to this Agreement hereby agree that any and all grievances and disputes
which arise between them, or between employees covered by this Agreement and the
Employer, concerning the interpretation or application of this Agreement shall be submitted to
the Joint Trade Board for final and binding resolution in accordance with the provisions set
forth in this Article.
3. The Joint Trade Board is empowered to hear and decide all grievances and disputes
which arise between the parties as to the interpretation or application of this Agreement; to
award or assess remedies, damages, and penalties for violations of this Agreement; to issue inter-
pretative rulings or other rules and regulations as it deems necessary to give force and effect to
the purpose and intent of this Agreement; to investigate all grievances and disputes submitted
to it, including the conduct of audits of Employer records; to recommend amendments to or
changes in this Agreement, but only upon request of both parties; to appoint such persons or
committees as may be necessary to aid the Board in the performance of its duties; and to
demand of Employers who repeatedly violate this Agreement the posting of a cash or surety
bond to assure future compliance.
4. All grievances and disputes shall be submitted to the Secretary in written form, with
copy furnished to the opposing party.
5. The Joint Trade Board shall meet regularly on an as-needed basis, but special meet-
ings may be called by the Chairman or Secretary when a prompt hearing and decision is
required in any given dispute.
6. No Union representative shall sit as a Board member in any case involving himself or
herself or his or her Employer, directly or indirectly; and no Employer representative shall sit
as a Board member in any case involving himself or herself or any of his or her employees,
directly or indirectly.
7. Decisions, awards, or orders of the Joint Trade Board shall be final and binding.
8. In administering and conducting dispute resolution activities and when issuing deci-
sions, awards, or orders in relation to grievances or disputes submitted to it, the Joint Trade
Board and the members of the Joint Trade Board shall function as arbitrators and not as the rep-
resentative of any entity that is party to such dispute. Accordingly, it is agreed that the Joint
Trade Board and its members shall enjoy all the rights, privileges and immunities afforded to
arbitrators under applicable law and the decisions of the Joint Trade Board shall be entitled to
the same stature, weight, and deference as may apply to a decision of an arbitrator under law.
9. The Board shall maintain full and complete records and minutes of its proceedings,
which records and minutes may be inspected at reasonable times by the parties to this
10. The Joint Trade Board, as such, shall not accept or receive any payments or contribu-
tions from Employers. Each party to this Agreement shall reimburse its representatives on the
Board for actual expenses. Expenses and fees of arbitration shall be shared equally by the par-
11. If the Joint Trade Board deadlocks or otherwise fails to decide any grievance or dis-
pute, either party may, within 30 days following said deadlock or failure, refer the grievance or
dispute to arbitration by filing a written request with the secretary of the Board, with copy
served on the opposing party. On receipt of such notice, the Joint Trade Board shall choose an
arbitrator. If the Board cannot agree on an arbitrator, it shall promptly request a list of arbitra-
tors from the Federal Mediation and Conciliation Service (FMCS) [or the American Arbitration
Association (AAA)]. On receipt of such a list, the chairman and secretary of the Board shall
select an arbitrator from such list in accordance with the rules and regulations of the FMCS [or
AAA]. The decision of the arbitrator shall be final and binding.
12. With respect to any individual Employer that fails to comply with a final and binding
decision issued at any level of this grievance procedure, the Union may, in its discretion: (a) termi-
nate this Agreement by 48 hours written notice to such Employer, or (b) continue this Agreement
in effect but not be bound or restricted by any “no strike” clause or similar obligation hereunder,
and/or (c) resort to any legal recourse available to it, including a job action or strike.
13. There shall be no strike or lockout on any job over any grievance or dispute while it
is being processed through this grievance procedure and until said procedure has been exhaust-
ed. However, and notwithstanding any contrary provision of this Agreement, the Union may
remove employees from any job(s) of an individual Employer who fails or refuses to pay the
wages and/or fringe benefits provided for and required by this Agreement, or refuses to stand
trial under these procedures, or fails to comply with a final and binding decision issued at any
level of this grievance procedure. Nothing stated in this Section shall preclude the Employer
from resorting to the grievance procedure with respect to any action or sanction taken or
imposed by the Union hereunder.
- 10 -
14. Notwithstanding Sections 11 and 12, a final and binding decision, rendered as part of
the grievance procedure, regarding the subcontracting clause of this Agreement shall be
enforced solely through administrative or judicial proceedings.
15. The remedies and sanctions specified in Sections 10 and 11 are in addition to other
remedies and sanctions that may be permitted by other provisions of this Agreement or by oper-
ation of law.
- 11 -
ALTERNATE ARTICLE XI
[NOTE: THIS PROVISION SHOULD BE USED IN CONSTRUCTION AGREEMENTS
IN AREAS WHERE AN EMPLOYER ASSOCIATION DOES NOT EXIST]
1. A grievance may be filed at any time by an affected employee or by a Union repre-
sentative acting on behalf of the Union, an employee or a group of employees. A “grievance”
may involve any dispute concerning the interpretation and/or application of provisions set forth
in the collective bargaining agreement, including past practices and customs of the parties.
2. In the event a dispute arises, the following steps shall be invoked by the party/employ-
ee pursuing the claim:
(a) Step One. The Union and/or the employee(s) shall, within thirty (30) days
after the occurrence that results in the complaint [or, within thirty (30) days
of receiving information relating to such occurrence], file a written griev-
ance that describes in general terms the nature of the occurrence, the man-
ner in which the Employer allegedly violated the collective bargaining
agreement, custom or practice of the parties, etc. and describes the nature of
the remedy sought. A copy of the grievance must be delivered to the
employee’s immediate supervisor and/or the Employer’s designated labor
relations supervisor and a copy must also be forwarded to the Business
Manager/Secretary Treasurer of the District Council/Local Union. Upon
receipt of a grievance under this procedure, if filed by an individual employ-
ee or group of employees, the Employer shall also be responsible for
promptly forwarding a copy of any such grievance to the Business
Manager/Secretary Treasurer so as to assure that the Union is aware of the
pendancy of the grievance.
(b) Step Two. Within one (1) week after the filing of a grievance, or at such other
time as the parties may mutually agree, a representative of the Union shall
meet with a designated representative of the Employer to attempt to resolve
the grievance. If the grievance has not been resolved within one (1) week
following such a meeting [or within two (2) weeks following the date of the
grievance if no such meeting has occurred or been scheduled], then the
Union may proceed to submit the matter to arbitration under the proce-
dures set forth below. Notwithstanding any provision set forth herein or
elsewhere in this Article, the parties may, at any time, agree mutually to
extend any time limit or time frame set forth.
- 12 -
(c) Step Three: Arbitration. If the parties cannot agree upon a settlement of a
grievance, then the Union may, within thirty (30) days following notice to
the Employer that it intends to seek arbitration, submit the matter for final
and binding arbitration under the rules and regulations of the American
Arbitration Association or the Federal Mediation and Conciliation Service.
The decision of a neutral arbitrator, selected pursuant to AAA or FMCS
rules and regulations, shall be final and binding upon all parties and the
grievant(s). The costs of any such arbitration proceeding shall be shared
equally by the Union and the Employer, except that each party shall pay the
cost for any witnesses they may call at a hearing (except for employees of
the Employer who are “on-the-clock” during any such proceeding), counsel
fees (which shall be borne by the party employing such counsel), and steno-
graphic fees (which shall be borne by the party ordering a copy of the tran-
script, if any). The arbitrator shall have no power to alter, modify, or change
any provision in the collective bargaining agreement and his/her powers
shall further be limited to an interpretation(s) of the Agreement, a determi-
nation of the specific matter presented in the grievance, and a decision that
shall state an appropriate remedy in relation to that grievance.
3. If the Employer fails to comply with a final and binding decision issued by an arbitra-
tor or a settlement agreed upon by the parties, the Union may, in its discretion: (a) terminate this
Agreement by forty-eight (48) hours written notice to such Employer; or (b) continue this
Agreement in effect but not be bound or restricted by any “no-strike” clause or similar obliga-
tion hereunder; and/or (c) resort to any legal recourse available to it, including a job action, a
strike, or litigation.
4. There shall be no strike or lockout on any job over any grievance or dispute while it
is being processed through this grievance procedure and until the said procedure has been
exhausted. However, and notwithstanding any contrary provision of this Agreement, the Union
may remove employees from any job(s) of the Employer if the Employer fails or refuses to pay
the wages and/or fringe benefits provided for and required by this Agreement, or refuses to par-
ticipate in the grievance process set forth above, or fails to comply with a final and binding deci-
sion issued at any level of this grievance procedure. Nothing stated in this section shall preclude
the Employer from resorting to the grievance procedure with respect to any action or sanction
taken or imposed by the Union hereunder.
Exclusive Hiring Hall
Section 1. The Union shall be the sole and exclusive source of referrals of applicants for
Section 2. The Employer shall have the right to reject any applicant for employment.
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Section 3. The Union shall select and refer applicants for employment without discrimi-
nation against such applicants by reason of membership or non-membership in the Union and
such selection and referral shall not be affected in any way by rules or regulations, bylaws, con-
stitutional provisions, or any other aspect or obligation of the Union membership policies or
requirements. All such selection and referral shall be in accordance with the following proce-
dure set forth in this Article.
Section 4. The Union shall maintain a register of qualified journeyperson applicants for
employment, established on the basis of the following Groups listed. Each applicant for employ-
ment shall be registered in the highest priority Group in which he or she qualifies. Applicants
shall then be referred to available jobs by means of “Group priority” in the chronological order
in which they register in the Group.When all qualified applicants in Group I have been referred,
qualified applicants from Group II shall be referred.
Group I: All qualified journeyperson applicants for employment who are residents
of the geographical area constituting the normal construction labor market and who
have been employed for a period of at least one (1) year in the last _________ years
[Note: The number of years should be equal to the length of the Union’s Apprentice
Program] under a collective bargaining agreement between the parties to this Agree-
Group II: All other applicants for employment who satisfy the requirements for
“qualified journeyperson” status.
For the purpose of satisfying the standard set forth in the Group I or Group II pro-
visions, a “qualified journeyperson” shall be any applicant who has at least ______
years of actual, practical working experience in the trade as a journeyperson or an
(1) Has successfully served an apprenticeship at the trade under the
apprentice program established by an IUPAT-affiliated District Council (or
Local Union); or
(2) Has passed a journeyman examination given by the District Council
_____ (or Local Union _____) Examining Board; or
(3) Has successfully passed a competency examination that adequately
tests the degree of skill and training necessary to be a competent jour-
- 14 -
1. “Normal construction labor market” is defined to mean the [describe area
encompassed by the geographical parameters of the labor agreement] plus any con-
tiguous area within a fifty (50) mile radius of the geographic boundary described
2. “Resident” means a person who has maintained his or her permanent home in
the above-defined geographical area for a period of not less than one (1) year or
who, having had a permanent home in this area, has temporarily left with the inten-
tion of returning home to this area as his or her permanent home.
3. “Examination” is defined to include only written and/or practical examina-
tions given by the IUPAT District Council (or Local Union) Apprentice Committee
or the IUPAT District Council (or Local Union) Examining Board, or by any duly
constituted District Council or Local Union affiliated with the IUPAT.
If the registration list is exhausted, and the Union is unable to refer applicants for employ-
ment to the Employer within 48 hours from the time of receiving the Employer’s request,
Saturdays, Sundays, and holidays excepted, the Employer shall be free to secure applicants with-
out using the referral procedure. The Employer shall notify the Union within five (5) days of
their date of hire of the names, addresses, and Social Security numbers of such directly hired
Section 5. Employers shall advise the Union of the number of applicants and any special
skills and certifications needed. The Union shall refer applicants to the Employer by first refer-
ring applicants in Group I in the order of their places on the register, and then referring appli-
cants in the same manner, successively, from the other groups. This provision, and the language
set forth in Section 4 notwithstanding, an Employer shall be permitted to review the available
names of applicants on the referral list and select individuals for referral as follows:
(a) The Employer may recall individuals who have been employed by the
Employer within the past twenty-four (24) months, notwithstanding their
place on the referral list; and
(b) The Employer may select individuals with special skills and certifications;
(c) The Employer may select an individual by name, notwithstanding his/her
place on the referral list provided the Employer hires the next individual
needed from the list (at a minimum, every other referral must come from
the chronological list in the applicable group).
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Section 6. Any applicant may be rejected by the Employer, in which case the applicant
shall be returned to his/her appropriate place within his or her group, and shall be referred to
other employment in accordance with the position of the group and his or her place within the
Section 7. The provisions set forth in this Article notwithstanding, the right of any appli-
cant for employment may be suspended in accordance with the following provision(s):
(a) Should any person referred for employment be terminated for just cause, his
or her referral privileges shall be suspended for two (2) weeks. Should the
same individual be terminated for cause a second time within a twenty-four
(24) month period, his or her hiring hall referral privileges shall be suspend-
ed for two (2) months. Should the same individual be terminated for cause
a third time within a twenty-four (24) month period, his or her referral priv-
ileges shall be suspended indefinitely.
(b) A termination shall not be considered “for just cause” for purpose of this
provision if the person referred for employment has filed a grievance chal-
lenging the propriety of his or her termination, unless and until the griev-
ance is resolved in a manner that affirms the termination for just cause. For
the purpose of this provision, a decision of the District Council Joint Trade
Board and/or an arbitrator shall be final and binding.
(c) The provisions in subsections (a) and (b) notwithstanding, a Termination
Review Committee, composed of the members of the District Council Joint
Trade Board [or, alternatively, if there is no Joint Board, “composed of two
(2) members appointed by the Business Manager/Secretary Treasurer of the
District Council and two (2) members appointed by the Employer
Association”] may, upon written request of the applicant, vacate or reduce
the period of suspension should the Committee determine, following inquiry
or investigation, in its sole and complete discretion, that equity requires such
Section 1. Hiring of Apprentices. The hiring of apprentices shall be governed by rules
and regulations, as amended from time to time, of the Joint Apprenticeship Committee of the
[set forth the official name of the Apprenticeship Program in the area]. The Employer shall not
seek to hire apprentices from any other source, or contrary to these rules and regulations. Any
person employed under this Agreement not designated an “apprentice” under this provision
shall be paid at the journeyperson rate set forth in this Agreement.
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Section 2. Ratio of Apprentices to Journeypersons. Each Employer shall employ and
train apprentices in the following ratio to journeyperson workers employed by the Employer:
1 apprentice per three (3) journeypersons
2 apprentices per six (6) journeypersons
Section 1. Straight Time Rate (Total Package) for Journeypersons classified as
________________________ [e.g., commercial painter].
Effective ___________________, 20______, the straight time rate (also referred to as the
“total package”) for journeypersons working under this Agreement shall be paid at the rate of
________ dollars ($___) per hour. This rate shall be allocated among wages and fringe benefit
contributions in the manner set forth in Appendix A of this provision. It is understood and
agreed upon by the parties that the Union party to this Agreement shall have complete discre-
tion in relation to the manner and amount(s) of the allocation(s) set forth in Appendix A.
Effective ___________________, 20______, straight time (total package) for journeyper-
sons’ hourly rate shall be increased by ____________________ ($______) per hour.
Effective ___________________, 20______, straight time (total package) for journeyper-
sons’ hourly rate shall be increased by ____________________________ ($______) per hour.
Section 2. [NOTE: Insert similar language – see above – for each job classification]
Section 3. [NOTE: Insert similar language – see above – for each job classification]
Section 4. In all instances, the Union shall have the option of applying such rates, increas-
es, or portions of such increases, to wages or fringe benefits, including any jointly administered
fund mentioned in this Agreement. The Union shall, prior to ______________ of each year [or
at other times during the year upon thirty (30) days notice], advise the Employer of the changes
in the wage and/or fringe benefit rates that the Union has determined shall apply as of each
Schedule of Employer Payments
for Journeypersons Under the Agreement
The regular journeyperson rate (total package) as of the effective date of this Agreement
shall be paid as follows:
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1. For Commercial Painters:
Eff. Date Hourly Rate H&W Industry D.C. Appr. Industry IUPAT Total
Pension Training Fund LMCI Package
$ $ $ $0.05 $ $ $0.10 $
2. For Bridge Painters:
Eff. Date Hourly Rate H&W Industry D.C. Appr. Industry IUPAT Total
Pension Training Fund LMCI Package
$ $ $ $0.05 $ $ $0.10 $
3. For Residential Painters:
Eff. Date Hourly Rate H&W Industry D.C. Appr. Industry IUPAT Total
Pension Training Fund LMCI Package
$ $ $ $0.05 $ $ $0.10 $
4. [Set forth other classifications]
Eff. Date Hourly Rate H&W Industry D.C. Appr. Industry IUPAT Total
Pension Training Fund LMCI Package
$ $ $ $0.05 $ $ $0.10 $
ALL WAGE RATES, FRINGE BENEFITS RATES, AND DEDUCTIONS PER HOUR ARE BASED ON ALL
HOURS PAID; PROVIDED, HOWEVER, FRINGE BENEFIT CONTRIBUTIONS FOR OVERTIME HOURS
NEED ONLY BE PAID ON THE ACTUAL OVERTIME HOUR(S) WORKED. [Note: Or, the parties may use “hours
worked” if that is the standard used in the area; provided, however, the term “hours worked” must include show-up time
payments, vacation time payments and all other forms of compensation paid to the employee.]
DEDUCTIONS PER HOUR FROM NET WAGE:
DEDUCT $0.05 PER HOUR FOR IUPAT-PAT FUND
DEDUCT $_____ FOR OTHER D.C. OR L.U. FUNDS THAT REQUIRE AFTER-TAX/NET WAGE DEDUCTIONS.
WORKING ASSESSMENT @ _____% xX JOURNEYPERSON GROSS PAY
- 18 -
* The parties understand, and agree, that the rates set forth above shall be payable for all straight time hours paid as of the
effective date of this Agreement. These rates, including fringe benefit contribution amounts, shall be modified on a peri-
odic basis by the Employer upon notice from the Union that it has determined the manner and amount(s) in which the
journeyperson hourly rate (total package) under the Agreement shall be allocated by the Employer. In all instances,
notwithstanding any other provision in the Agreement, the Employer shall cause the wage and/or fringe benefit rates set
forth above to be modified in accordance with the instruction and effective dates of such changes that it receives from the
Union. In addition, the Employer shall comply, at all times, with any instruction it may receive from the Union concerning
changes in the amount(s) of dues or assessments, PAT contributions, and/or any other contribution or assessment that is,
or may be, deducted by the Employer from the net wages of the employee and transmitted to the Union under provisions
set forth in this Agreement in accordance with Union rules and regulations.
The parties agree that apprentices who are hired by the Employer shall receive the follow-
ing percentages of the regular/hourly straight time rate of pay that is payable as an hourly wage
payment to journeypersons working under this Agreement. The parties understand, and agree,
that the Employer shall, on behalf of each such apprentice, make contributions to the various
fringe benefit funds identified in this Agreement in the amount(s) set forth in Appendix A on
behalf of each apprentice. Upon satisfactory completion of the apprentice program, each appren-
tice shall receive the same wage rate as is required for journeypersons under this Agreement.
First Period ______%
Second Period ______%
Third Period ______%
Fourth Period ______%
Fifth Period ______%
Sixth Period ______%
Seventh Period ______%
Eighth Period ______%
Ninth Period ______%
Tenth Period ______%
[NOTE: IF THE AREA PRACTICE IS TO STATE QUALIFICATIONS IN NUMBERS OF
HOURS WORKED BY AN APPRENTICE OR BASED ON ANY OTHER ACCEPTABLE
STANDARD, SUCH LANGUAGE IS ALSO ACCEPTABLE AS LONG AS THE STAN-
DARD IS CLEARLY STATED.]
Payment of Wages
Section 1. Employees shall be paid weekly on a day designated by the Employer. Checks
shall be distributed on the job site no later than the close of the regular work day. Alternately,
- 19 -
paychecks can be direct deposited to the employees’ bank accounts or, by mutual written con-
sent of the Union and the Employer, may be mailed to the employees. No more than
__________ days wages may be withheld at any time from a paycheck.
Section 2. All wages shall be paid by negotiable check (or direct deposit, if appropriate)
and shall be accompanied by a statement of gross earnings and any deductions made. Such state-
ment shall show the Employer’s name, the employee’s name, the hourly rate of pay, the dates
and hours worked, all deductions made, and the net amount due the employee. Wage payments
shall conform with all applicable federal and state laws.
Section 3. Employees who quit need not be paid until the next regular payday. In the
case of discharge or layoff, the Employer shall pay employees in full by the close of the work
day on which their employment is terminated. In instances in which it is logistically impossible
for an Employer to make payment to the employee on his/her last day of work, the Employer,
after notification to the Union, shall mail or direct deposit the payment to the employee or
employees within one (1) business day of the layoff/termination of employment.
Section 4. If any employee is not paid in a timely manner, in accordance with the provi-
sions set forth herein, he/she may file a grievance with the Joint Trade Board. The Joint Trade
Board may assess a penalty on the Employer equal to three (3) times the amount involved for
a failure to make timely payment(s) to the employee, in violation of this provision.
Section 5. Each employee shall verify that he/she has received payment of proper wages,
travel pay, premium due, and other compensation due him/her. If there is a dispute, the employ-
ee must make a request for correction, through the Employer representative, steward, and/or
business representatives within two (2) weeks of receiving such pay. If appropriate correction is
not made, the employee may file a grievance with the Joint Trade Board. Nothing in this provi-
sion shall be construed as imposing any time limits or other limitations on a claim by the Union
and/or any Union-related or affiliated benefit fund that the Employer has failed to make time-
ly and appropriate contributions to the Union and/or any fringe benefit fund.
Work Day and Work Week: Overtime and Shift Premiums
Section 1. The work week shall consist of any consecutive seven (7) day period designat-
ed by the individual Employer. Once the individual Employer designates the work week for the
Employer, it may not be changed without the consent of the Union.
Section 2. The regular work day shall consist of eight and one-half (81/2) consecutive
hours in the shop or on the job. This shall consist of eight (8) working hours with a one-half (1/2)
hour unpaid lunch period at approximately the midpoint of the shift. Except as provided in this
Article, all such hours shall be recognized as regular working hours and paid for at the regular
hourly rate. The regular weekly work schedule shall consist of five (5) consecutive regular work
- 20 -
Section 3. In the discretion of the Employer, the regular work day may consist of ten (10)
hours labor on the job and the regular weekly work schedule may consist of four (4) ten (10)
hour days on consecutive days.
Section 4. In the discretion of the Employer, a make-up day may be scheduled for work
missed due to holidays or inclement weather. The make-up day shall be paid at the regular
hourly rate of pay, unless work is performed on Sunday or unless the work missed was sched-
uled to be performed on overtime.
Section 5. Employees shall be at the shop or project site and prepared to work at the
scheduled starting time each day and shall remain until quitting time.
Section 6. All work outside the regular work day and all work in excess of forty (40)
hours in the work week shall be paid at one and one-half (11/2) times the regular rate.
Section 7. For any shift which starts prior to 6:00 A.M. or after 12:00 P.M., the Employer
shall pay all employees a shift differential of $______ per hour above the applicable wage scale.
All shifts shall be scheduled for at least eight (8) consecutive hours.
Section 8. All work on Sunday shall be paid at one and one-half (11/2) times the regular rate.
Section 9. There shall be no pyramiding of overtime payments required by this Article.
Breaks and Clean-Up Time
Section 1. Breaks. The following rules shall apply to employee breaks during regular and
extended shift hours:
(a) A non-organized __________ [insert number of minutes] minute break shall
be allowed at the approximate midpoint of the pre-lunch work time on each
shift. This break is to be taken at the assigned place of work.
(b) In an effort to maintain productivity, safety, and hygiene on full-containment
jobs or jobs where employees would need to change clothes or travel an
extensive distance to safely take a break, then there shall be no pre-lunch
break as provided in sub-section (a) above. When such circumstances exist,
then fifteen (15) minutes shall be added to the lunch period. While the reg-
ular one-half (1/2) hour lunch period is unpaid time, these additional fifteen
(15) minutes shall be paid time. The above system, in lieu of break, may be
implemented only by mutual consent of the Employer and the Union on a
job-by-job basis. When the break is replaced by additional time added to the
lunch period, the start time of the lunch break can be moved in order to give
the employees a break closest to the midpoint of the work day.
- 21 -
(c) On projects scheduled for longer than eight (8) work hours per day, employ-
ees shall be given an additional ten (10) minute break at the end of the first
eight (8) hours worked.
Section 2. Clean-up Time. All employees shall be given sufficient personal clean-up time,
on the clock, prior to lunch and immediately prior to quitting time. A minimum of five (5) min-
utes before lunch and a minimum of ten (10) minutes before quitting time shall be allowed as
standard under this Agreement. When appropriate in relation to conditions on a particular proj-
ect, the Employer and the Union may agree to expand this personal clean-up time. Personal
clean-up time shall be taken after cleaning and placing materials and equipment where they
The following days shall be recognized as unpaid holidays: New Year’s Day, Memorial
Day, Fourth of July, Labor Day, Veterans Day, State or national general Election Day,
Thanksgiving Day, and Christmas Day. All work performed on these recognized holidays shall
be paid for at one and one-half (11/2) times the regular rate. No work shall be performed on
Labor Day except in case of emergency or to protect lives or property, and then only after per-
mission has been requested and granted by the Union or its representative.
On projects covered by a Project Labor Agreement, General President’s Agreement,
National Maintenance Agreement, or any other national or local agreement superseding this
Agreement, the parties agree that the holidays, during the term of such project, shall be recog-
nized in accordance with such other Agreement, and such other Agreement shall supersede the
provisions set forth herein.
Any employee reporting to work at the regular starting time shall receive two (2) hours
pay at the regular hourly rate unless he or she has been notified, at least two (2) hours prior to
the reporting time, not to report to work.
Any employee who reports to work and for whom work is provided shall receive no less
than two (2) hours pay.
Section 1. Where employees are required by the Employer to travel more than one hun-
dred twenty (120) miles per day, round trip to and from the job site, then the Employer shall pay
- 22 -
such employees $_____ per mile, per day for all miles over one hundred twenty miles (120)
miles, round trip, to and from work. The start point shall be the employee’s home. When the
Employer provides transportation to and from the job, this shall be in lieu of travel pay.
Section 2. Employees working out of town, not being driven daily, shall have room and
board furnished by the Employer. Room and board shall be defined as the reasonable cost of
lodging plus $ _____ per day as per diem.
Contributions to the International Painters
And Allied Trades Industry Pension Fund,
The Finishing Trades Institute
and the Painters and Allied Trades
Labor Management Cooperation Initiative
1. For the duration of this Agreement, and any renewals or extensions thereof, the
Employer agrees to make payments to the International Painters and Allied Trades Industry
Pension Fund (“the Pension Fund”), the Finishing Trades Institute (“FTI”) and the Painters and
Allied Trades Labor Management Cooperation Initiative (“LMCI”), for each employee cov-
ered by this Agreement as follows:
(a) For each hour or portion of an hour for which an employee receives pay, the
Employer shall make a contribution in the following amount: ______ to the
Pension Fund; ______ to the FTI; and ______ to the LMCI. (Contributions
must be made for each hour paid by the Employer, except that, when over-
time rates apply, a contribution need be made for only the actual hour(s)
(b) Contributions shall be paid on behalf of any employee starting with the
employee’s first hour of employment in a job classification covered by this
Agreement. This includes, but is not limited to, apprentices, journeypersons,
trainees, and probationary employees.
(c) The payments to the Pension, FTI, and LMCI Funds described above shall
be made separately to each respective Fund or as otherwise set forth in writ-
ten instructions that the Employer shall receive from the Administrator(s)
of each respective Fund. The Employer hereby understands, accepts, and
agrees to be bound by all provisions set forth in the Agreement and
Declaration of Trust that has been adopted by the parties to each of the
respective Funds identified above, including all amendments and modifica-
tions made thereto, and the Employer hereby agrees to be bound by and to
said Agreements and Declarations of Trust as though it had actually signed
- 23 -
(d) The Employer shall, with respect to any and all contributions or other
amounts that may be due and owing to the IUPAT and its related or affili-
ated Funds or organizations, including, but not limited to, the IUPAT
Industry Pension Plan, the IUPAT Industry Annuity Plan, the Finishing
Trades Institute, the Painters and Allied Trades Labor Management
Cooperation Initiative, the IUPAT Political Action Together (and any and
all other affiliated International organizations as may be created or estab-
lished in the future), upon receipt of a written directive to do so by the affil-
iated Funds and organizations, make all required payments, either directly
or through an intermediate body, to the “Central Collections” Unit of the
International Union and its affiliated Funds and organizations. Such contri-
butions shall be submitted on appropriate forms, in such format and with
such information as may be required by Central Collections.
2(a) The Employer hereby irrevocably designates as its representatives on the
Boards of Trustees of the Pension Fund, the FTI, and the LMCI such
Trustees as are now serving, or who will in the future serve, as Employer
Trustees, together with their successors, as provided for in the aforesaid trust
(b) The Union hereby irrevocably designates as its representatives on the
Boards of Trustees of the Pension Fund, the FTI, and the LMCI such
Trustees as are now serving, or who will in the future serve, as Union
Trustees, together with their successors, as provided for in the aforesaid trust
(c) The parties hereto further agree to be bound by all actions taken by the
Trustees of the Pension Fund, the FTI, and the LMCI pursuant to the said
Agreements and Declarations of Trust.
3. All contributions to the Funds described in paragraph 1 hereof shall be made at such
time and in such manner as the Trustees of each respective Fund may require, and the Trustees
shall have the authority to have a certified public accountant audit the payroll, wage, and other
relevant records of the Employer for the purpose of determining the accuracy of contributions
to each respective Fund.
4. If an Employer fails to make contributions to any of the Funds described in paragraph
1 hereof within twenty (20) days after the date required by the Trustees, such failure shall be
deemed a violation of this Agreement and the Union shall have the right to take whatever steps
are necessary to secure compliance with this Agreement, any provisions hereof to the contrary
notwithstanding, and the Employer shall be liable for all costs of collecting the payments due,
together with the attorneys’ fees and such penalties as may be assessed by the Trustees of each
respective Fund. The Employer’s liability for payment under this provision shall not be subject
to or covered by any “no-strike” clause which may be provided or set forth elsewhere in this
Agreement and such provisions shall not apply in the event of a violation of this clause.
- 24 -
5. Each of the respective Funds described in paragraph 1 hereof shall, at all times, con-
form with the requirements of the Internal Revenue Code and other applicable laws and regu-
lations so as to enable the Employer, at all times, to treat contributions to them as a deduction
for income tax purposes.
Contributions through Voluntary
Deductions to the IUPAT-PAT-PC Fund
The Employer signatory to this Agreement hereby agrees to honor authorizations, in the
following form, for checkoff of political contributions from employees who are Union members,
and to forward all contributions and reports on contributions on or before the twentieth (20th)
day of each month for the previous work month to Combined National Fund, P.O. 79128,
Baltimore, MD 21279-0128.
AUTHORIZATION FORM FOR CHECKOFF OF POLITICAL CONTRIBUTIONS
I hereby authorize and direct my Employer to deduct from my pay the sum of five
cents (5¢) for each hour that I receive pay (or from each regular paycheck _________
dollars weekly), as a contribution to the Political Action Together–Political Committee
(PAT-PC) of the International Union of Painters and Allied Trades. I further authorize
and direct the Employer to send to the “Combined National Fund,” on or before the
20th day of each month, the contributions and report on contributions due for the pre-
vious work month. Checks shall be made payable to “Combined National Fund” and
mailed to Combined National Fund, P.O. Box 79128, Baltimore, MD 21279-0128. I fur-
ther authorize and direct the Employer to honor any instruction that it may receive
from a duly authorized representative of PAT-PC concerning a change in mailing or
payment instructions relating to this contribution, should same occur.
This authorization is voluntarily made based on my specific understanding that the
signing of this authorization card and the making of these voluntary contributions
are not conditions of membership in the Union or of employment by my Employer;
that I may refuse to contribute without reprisal; that the PAT-PC and the AFL-CIO
COPE are engaged in joint fundraising and use the money they receive for political
purposes, including but not limited to making contributions to and paying expendi-
tures for candidates for federal, state, and local offices and addressing political issues
of public importance; and that the guideline amount indicated above is only a sug-
gestion and I may contribute more or less and will not be favored or disadvantaged
by the Union or my employer for doing so.
This authorization shall remain in full force and effect until revoked in writing by me.
Social Security Number____________________________________________________
- 25 -
Authorized by International Union of Painters and Allied Trades and the AFL-CIO
on behalf of PAT-PC and AFL-CIO COPE.
Contributions or gifts to PAT-PC or AFL-CIO COPE are not deductible as charita-
ble contributions for federal income tax purposes.
Contributions to District Council (or Local Union)
Welfare, Pension, Apprenticeship (or Other Fringe Benefit Funds)
1. Commencing with the ________ day of _______________, 20______, and for the dura-
tion of the Agreement, and any renewals or extension thereof, the Employer agrees to make
payments to the District Council No. ___ Pension Fund, the District Council No. _____ Welfare
Fund, the District Council No. _____ Apprentice Fund, the _______ (Local or National) Industry
Fund (also identify any other applicable multi-employer Fund) for each employee covered by
this Agreement, as follows:
(a) For each hour or portion thereof for which an employee receives pay, the
Employer shall make a contribution in the amount(s) set forth in this provi-
sion to each respective Fund: $_____ to the District Council No._____
Pension Fund; $_____ to the District Council No. _____ Welfare Fund;
$_____ to the District Council No. _____ Apprenticeship Fund; $_____ to the
_____ (Local or National) Industry Fund. [NOTE: also identify other appli-
cable multi-employer Funds]. (Contributions must be made for each hour
paid by the Employer, except that, when overtime rates apply, a contribution
need be made for only the actual hour(s) worked.)
(b) For the purpose of this Article, each hour paid for, including hours attribut-
able to show-up time, and other hours for which pay is received by the
employee or payable by the Employer in accordance with the Agreement,
shall be counted as hours for which contributions are payable.
(c) Contributions shall be paid on behalf of any employee starting with the
employee’s first day of employment in a job classification covered by this
Agreement. This includes, but is not limited to, apprentices, helpers, trainees,
and probationary employees.
(d) The payments to the ___________ Pension, Welfare, Apprentice, and (Local
and National) _________ Industry Fund (add names of other Funds cov-
ered) required above shall be made separately to each respective Fund or as
otherwise set forth in written instructions that the Employer shall receive
from the Administrator(s) and each respective Fund. The Employer hereby
understands, accepts, and agrees to be bound by all provisions set forth in
the Agreement and Declaration of Trust that has been adopted by the par-
- 26 -
ties to each of the respective Trust Funds identified above, including all
amendments and modifications made thereto, and the Employer agrees to
be bound by and to said Agreements and Declarations of Trust, as amended
from time to time, as though it had actually signed the same.
2. The Employer hereby irrevocably designates as its representatives on the Board of
Trustees of each Trust Fund identified above, such Trustees as are now serving, or who will in the
future serve, as Employer Trustees, together with their successors. The Employer further agrees
to be bound by all actions taken by the Trustees pursuant to the said Agreement and
Declaration of Trust, as amended from time to time.
3. All contributions shall be made at such time and in such manner as the Trustees
require; and the Trustees of each respective Fund may at any time conduct an audit in accor-
dance with provisions set forth in the Agreement and Declaration of Trust or other rules and
regulations that may, from time to time, be adopted by the Trustees.
4. If the Employer fails to make contributions to one or more, or any of these Funds
within twenty (20) days after the date required by the Trustees, the Union shall have the right
to take whatever steps are necessary to secure compliance with this Agreement, and any other
provisions hereof to the contrary notwithstanding, and the Employer shall be liable for all costs
of collection of the payments due, together with attorneys’ fees and such penalties as may be
assessed by the Trustees. The Employer’s liability for payment under this Article shall not be
subject to or covered by any grievance or arbitration procedure or any “no strike” clause that
may be provided or set forth elsewhere in this Agreement, and such provisions shall not apply
in the event of a violation of this clause.
5. Each said Fund and each benefit plan adopted by the Trustees shall at all times con-
form with the requirements of the Internal Revenue Code so as to enable the Employer at all
times to treat contributions to said Fund as a deduction for income tax purposes.
Working job stewards may be designated on all jobs by the Union. The Employer shall fur-
nish the Union with written reports upon request of all jobs being currently performed by the
Employer. Such reports shall include the name and location of the job and the number and
names of the employees employed. The Union may, at its option, appoint a working job steward
on any job where its members are employed from among the employees on the job. The Union
shall notify the Employer at that time of the identity of the Steward.
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The duties of the job stewards shall be as follows:
(1) To see that the provisions of this Agreement are observed;
(2) To receive and endeavor to adjust at the first step, all grievances that may be submit-
ted to him or her;
(3) To report to the full-time representatives of the Union any IUPAT trade jurisdiction
work being performed on the job site by any person who is not an IUPAT member;
(4) To mentor fellow members concerning the importance of a professional and produc-
tive approach to work.
The job stewards shall be allowed sufficient and reasonable time during working hours to
carry on any activities necessary to discharge their duties. They shall have authority to check the
identification of individuals employed on the job or in the shop. The Employer shall not dismiss
or otherwise discipline any steward for properly performing his or her duties, nor shall the
Employer dismiss or otherwise discipline any employee for making a complaint to the steward or
giving evidence with respect to an alleged violation of this Agreement. The job steward shall have
top seniority on the job to which he or she is assigned, as long as he or she remains in the position
of steward and so long as he or she has the qualifications and ability to perform the available
work. The job steward shall be the first person offered overtime, provided he/she has the qualifi-
cations and ability to perform the available work. Job stewards may be relieved of their duties at
any time at the discretion of the Union. It is agreed by the parties hereto that the job steward shall
not have the authority to call for or initiate a work stoppage or job action at the workplace or job
site and must immediately report all problems to the Business Manager or Business Agent.
Section 1. Employees covered by this Agreement shall have the right to respect any legal
primary picket line validly established by any bona fide labor organization, and the Union party
to this Agreement has the right to withdraw employees covered by this Agreement whenever
the Employer party to the Agreement is involved in a legitimate primary labor dispute with any
bona fide labor organization
Section 2. It shall not be a violation of this Agreement, and it shall not be cause for dis-
charge or disciplinary action, if any employee refuses to perform any service which his or her
Employer undertakes to perform for an Employer or person whose employees are on strike,
and which service, but for such strike, would be performed by the employees of the Employer
or person on strike.
Section 3. Union representatives shall, at all times, have the right to visit and access all
job sites that are subject to this Agreement.
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Preservation of Work
Section 1. To protect and preserve, for the employees covered by this Agreement, all
work they have performed and all work covered by this Agreement, and to prevent any device
or subterfuge to avoid the protection and preservation of such work, it is agreed as follows: If
the Employer performs on-site construction work of the type covered by this Agreement, under
its own name or the name of another, as a corporation, company, partnership, or other business
entity, including a joint venture, wherein the Employer, through its officers, directors, partners,
owners, or stockholders, exercises directly or indirectly (through family members or otherwise),
management, control, or majority ownership, the terms and conditions of this Agreement shall
be applicable to all such work.
Section 2. All charges of violations of Section 1 of this Article shall be considered a dis-
pute and processed in accordance with the provisions of this Agreement on the handling of
grievances and the final and binding resolution of disputes. As a remedy for violations of this
Article, the Joint Trade Board or arbitrator shall be able, at the request of the Union, to require
an Employer to pay (1) to affected employees covered by this Agreement, including registered
applicants for employment, the equivalent of wages those employees have lost because of the
violations, and (2) into the affected Joint Trust Funds to which this Agreement requires contri-
butions, any delinquent contributions that resulted from the violations. The Joint Trade Board
or Arbitrator shall be able also to provide any other appropriate remedies, whether provided by
law or this Agreement. The Union shall enforce a decision of the Joint Trade Board or
Arbitrator under this Article only through arbitral, judicial, or governmental (for example,
National Labor Relations Board) channels.
Section 3. If, after an Employer has violated this Article, the Union and/or the Trustees
of one or more Joint Trust Funds to which this Agreement requires contributions institute legal
action to enforce an award by an Arbitrator or the Joint Trade Board remedying such violation,
or defend an action that seeks to vacate such award, the Employer shall pay any accountants’
and/or attorneys’ fees incurred by the Union and/or the Joint Trust Funds, plus costs of the liti-
gation, that have resulted from such legal action. This Section does not affect other remedies,
whether provided by law or this Agreement, that may be available to the Union and/or the Joint
Section 1. The Employer shall not contract out, subcontract, or outsource work to be
done at the site of the construction, alteration, painting, or repair of a building or structure or
other work unless the Employer or person who will perform such work is a party to a Collective
Bargaining Agreement with this Union or another Union affiliated with the IUPAT.
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Section 2. In the event that the Employer shall contract out, subcontract, or outsource
any bargaining unit work, whether or not job site or other work encompassed by Section 1 here-
of, the Employer must notify the Union as to the identity of the contractor or subcontractor to
which the work will be assigned within ________ days prior to finalizing any agreement with
such contractor, subcontractor, or other person.
Section 3. In the event of contracting, subcontracting, or outsourcing of any job site work
encompassed by the provisions set forth in Section 1 hereof, if the Union has provided the
Employer with written notice that a contractor is presently delinquent in making contributions
to the Union or any fringe benefit fund to which contributions are required by this Agreement,
and, after being provided such written notice, the Employer nonetheless enters into or contin-
ues a contract for the performance of any job site work that is covered by this Agreement with
such delinquent contractor, the Employer shall be liable for any unpaid fringe benefit contribu-
tions owed by such contractor because of the performance of such job site work pursuant to that
Section 1. In accordance with the requirements of the Occupational Safety and Health
Act of 1970, it shall be the exclusive responsibility of the Employer to ensure the safety of its
employees and compliance by them with any safety rules contained herein or established by the
Employer. Nothing in this Agreement will make the Union liable to any employees or to any
other persons in the event that work-related disease, sickness, death, injury, or accident occurs.
The Employer will not engage in any litigation against the Union, on a subrogation theo-
ry, contribution theory, or otherwise, so as to obtain a money judgment from it in connection
with any work-related disease, sickness, death, injury, or accident.
Section 2. The Employer shall, at all times, provide safe tools, materials, and equipment
and safe working conditions. If at any time, in the opinion of an employee, such tools, materials,
equipment, or working conditions are unsafe and constitute a hazard to health or physical safe-
ty, the employee shall have the right to refuse to work with such tools, materials, or equipment
or under such hazardous conditions unless or until they are made safe. No employee shall be
dismissed, disciplined, or otherwise discriminated against, nor shall his pay be withheld, for
refusal to work with such unsafe tools, materials, or equipment or under such unsafe or haz-
ardous working conditions.
Section 3. The Employer agrees that during the life of this Agreement, the Employer will
comply with all applicable federal and state laws concerning occupational safety and health,
including all applicable standards, rules, and regulations issued pursuant thereto.
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Section 4. The Employer shall provide, at no cost to the employee, all necessary person-
al protective equipment and instructions on proper use of such equipment. The Employer shall
provide for the proper maintenance and cleaning of all necessary personal protective equip-
ment. If at any time, in the opinion of an employee, such personal protective equipment is defec-
tive, has not been properly maintained, or is not the appropriate personal protective equipment
under the particular working conditions, the employee has the right to refuse to work with such
equipment. No employee shall be dismissed, disciplined, or otherwise discriminated against, nor
shall his pay be withheld for refusal to work with such defective, improperly maintained, inap-
propriate personal protective equipment. The employee shall immediately report to the
Employer such defective, improperly maintained, or inappropriate personal protective equip-
Section 5. Except as clearly and specifically required by law or regulation, the Employer
shall not require any employee to sign a form or statement dealing with health and safety, haz-
ards in the workplace, or instruction and training relating to hazards in the workplace, unless
that form or statement has been reviewed and agreed upon by the Union; provided, however,
employees may be required to execute documents acknowledging that they have received and
read an Employer’s health and safety policy.
Section 6. A willful violation of safety rules by an employee may result in discipline, up
to and including discharge.
Section 7. The Employer shall, in writing, promptly report to the Union all accidents and
all incidents involving OSHA and/or MSHA reportable injuries to workers.
Journeyperson Upgrade Training
Section 1. A program shall be offered by the District Council (or Local Union)
Apprenticeship Program for advanced or upgraded journeyperson training for all journeyper-
sons working under this Agreement. Journeypersons shall be required to take such courses in
accordance with the following rules: [NOTE: The parties should negotiate on a local basis what
rules will apply to journeyperson upgrade training.]
Miscellaneous Terms and Conditions
Section 1. Discrimination. The Employer shall not discriminate against any employee on
the basis of race, age, national origin, religion, sex, or any other basis prohibited by applicable
law. In addition, any employee member of the Union acting in any official capacity shall not be
discriminated against for his or her acts on behalf of the Union, nor shall there be any discrim-
ination against any employee because of Union membership or activities.
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Section 2. Entry Level Journeyperson. An entry level journeyperson is defined as an
individual who has passed the required proficiency evaluation given by the District Council (or
Local Union) Examining Board [or the District Council (or Local Union) JATC], but has not
graduated from an IUPAT-affiliated Apprenticeship Program and is found to be lacking certain
skills of the trade. An entry level journeyperson must complete four thousand (4,000) hours of
employment for signatory Employers in the classification of entry level journeyperson, and also
complete all mandatory certified health and safety training, as well as other courses that may be
deemed appropriate by the District Council (Local Union) Examining Board [or the District
Council (or Local Union) JATC] to be eligible for re-evaluation as a journeyperson. A ratio of
three (3) journeypersons to one (1) apprentice must be met by an Employer before entry level
journeypersons can be employed. Once appropriate ratios are satisfied, entry level journeyper-
sons may be utilized at a ratio of one (1) entry level journeyperson for every four (4) employ-
ees. This provision notwithstanding, the District Council’s (Local Union’s) Examining Board [or
the District Council (or Local Union) JATC], upon evaluating the skills and abilities of any new
employee/applicant may certify the individual as a full journeyperson, notwithstanding whether
the individual graduated from an IUPAT-affiliated Apprenticeship Program when the
Examining Board [or JATC] has determined that the individual possesses substantially all skills
of a trained journeyperson. Employees/members who have achieved full journeyperson status
prior to the date of this Agreement shall be considered journeypersons within the meaning of
this provision and may not be paid the “entry level” journeyperson rate. In addition, the
Business Manager/Secretary Treasurer shall be empowered, in his/her discretion, to waive the
ratios set forth herein and permit use of entry level journeypersons based on manpower avail-
ability. [NOTE: The parties should negotiate on a local basis concerning other issues relating to
entry level journeypersons, for example: (1) how such individuals will be hired or referred; (2)
whether the District Council/Local Union will need to maintain a separate hiring list for entry
level journeypersons; and (3) the wage and fringe benefit rate that will apply to such workers.]
Section 3. Union Right to Verify Compliance by Signatory Contractor with Provisions
and Obligations in this Agreement. In addition to any other rights that may be set forth in this
Agreement, or by operation of law, if the Joint Trade Board shall upon application by the Union
find probable cause to believe a violation of this Agreement may have occurred or may be
occurring, the Union shall be empowered to engage a certified public accountant to audit all
books and records of the Employer for the purpose of assuring compliance with the provisions
in this Agreement.
Section 4. STARS Program. The parties to this Agreement shall, as soon as is practica-
ble, form a committee to study and implement the STARS program. Upon approval by the par-
ties for implementation of the STARS program, this Agreement shall be deemed modified to
include such provisions without the necessity of formal amendment.
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Section 5. Bonding. [NOTE: The parties should, locally, negotiate language that will pro-
vide for adequate and reasonable surety bonds for signatory Employers. Bonds should be
designed to assure payment of wages due to employees as well as contributions or payments due
to the Union, the Industry Fund, the fringe benefit funds, and other entities to which payments
may be due under this Agreement.]
Section 6. Workers Compensation Insurance and Alternative Dispute Resolution Pro-
grams. The Employer agrees, upon execution of and throughout the term of this Agreement and
any extensions thereof, to elect to be bound by the provisions of all State and local Workers
Compensation laws that are applicable to work performed by the Employer. The Employer fur-
ther agrees to provide and furnish a Certificate of Insurance covering all liability and obligations
under such laws to the Union and the local Joint Trade Board. If local or state laws permit the
establishment of an Alternative Dispute Resolution Workers’ Compensation Program (ADR
Program) and where a Finishing Contractors Association affiliated organization is a party to this
Agreement and has lawfully created and/or established an ADR Program that will provide all
required state and local workers’ compensation benefits, the Employer may elect to participate in
such ADR Program. Said ADR Program rules or regulations shall be submitted to the Union for
review prior to implementation by the Employer.
Flexibility to Modify Agreement to Expand or Recover Work
The terms and provisions of this Agreement may be modified by the Business Manager/
Secretary Treasurer of the District Council (Local Union), at his/her discretion, for the purpose
of organizing, holding a job union, maintaining or entering a particular market segment, and for
entering into maintenance agreements. Such modification(s) to the Agreement shall occur only
on a project-by-project basis, may occur only during the bid process (not after the work has been
awarded), and shall be offered to all bidders signatory with the IUPAT.
IUPAT and Finishing Contractors Association
Not a Party to the Collective Bargaining Agreement
It is understood and agreed by and between the parties to this Agreement that, by approv-
ing this Agreement pursuant to provisions set forth in the IUPAT General Constitution, neither
the International Union of Painters and Allied Trades, AFL-CIO, CLC (“International Union”)
nor any of its officers, agents, employees, or representatives shall, in any manner:
(1) Be made the subject of any duty or liability whatsoever arising from the terms and
conditions of this Agreement;
(2) Be held liable with respect to any claims, causes of action, or liabilities relating to the
application or interpretation of the terms of this Agreement, or the actions of the parties in rela-
tion thereto; and
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(3) Be construed as parties to this Agreement.
The parties further acknowledge that the International Union shall not, in any manner,
incur any responsibilities, duties, or liabilities under this Agreement, by contract or by operation
of law, that result from the exercise of the International Union’s duty, pursuant to its General
Constitution, to approve this Agreement as to form.
In addition, the parties to this Agreement understand that provisions in this Agreement
may be similar or identical to that contained in a standard “model” collective bargaining agree-
ment for the industry that has been recommended for consideration by the IUPAT and the
Finishing Contractors Association (“FCA”). The signatory parties to this Agreement agree,
acknowledge, and understand that all language appearing in this Agreement is solely their
choice and, although some language set forth herein may have been borrowed from the “model”
or “form” language provided by the IUPAT, the FCA, or other persons, neither the IUPAT, the
FCA, or such other person is a party to this Agreement and shall not be made liable to any party
or beneficiary of this Agreement by reason of having provided model or form language to the
parties hereto. In establishing a recommended contract form, neither the International Union of
Painters and Allied Trades, nor the Finishing Contractors Association, has acted as the bargain-
ing representative for any entity that may choose to adopt the language of this recommended
Agreement. Furthermore, neither the International Union of Painters and Allied Trades, nor the
Finishing Contractors Association, shall be deemed to be a party to this, or any collective bar-
gaining agreement that adopts such recommended language.
This Agreement, and any supplements or amendments thereto, hereinafter referred to col-
lectively as “Agreement,” shall be binding upon the parties hereto, their successors, administra-
tors, executors and assigns.
In the event the Employer’s business is sold, leased, transferred, or taken over by sale,
transfer, lease, assignment, or receivership proceedings, such business and operation shall con-
tinue to be subject to the terms and conditions of this Agreement for the life thereof.
It is understood by this provision that the parties hereto shall not use any leasing or other
transfer device to a third party to evade this Agreement. The Employer shall give notice of the
existence of this Agreement and this provision to any purchaser, transferee, lessee, assignee, etc.,
of the business and operation covered by this Agreement or any part thereof. Such notice shall
be in writing with a copy to the Union, at the time the seller, transferor, or lessor executes a con-
tract or transaction as herein described. The Union shall also be advised of the exact nature of
the transaction, not including financial details.
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In the event the Employer fails to require the purchaser, transferee, or lessee to assume
the obligations of this Agreement, the Employer shall be liable to the Union, and to the employ-
ees covered for all damages sustained as a result of such failure to require assumption of the
terms of this Agreement, but shall not be liable after the purchaser, transferee, or lessee has
agreed in writing to assume the obligations of this Agreement.
The Employer agrees not to enter into any agreement or contract with its employees, indi-
vidually or collectively, absent consent by the Union, and any such Agreement shall be null and
General Savings Clause
If any Article or Section of this Agreement should be held invalid by operation of law or
by any tribunal of competent jurisdiction, or if compliance with or enforcement of any Article
or Section should be restrained by such tribunal pending a final determination as to its validity,
the remainder of this Agreement, or the application of such Article or Section to persons or cir-
cumstances other than those as to which it has been held invalid or as to which compliance with
or enforcement of has been restrained, shall not be affected thereby.
In the event that any Article or Section is held invalid or enforcement of or compliance
with any Article or Section has been restrained, as above set forth, the affected parties shall
meet at the request of any party to this Agreement, for the purpose of arriving at a mutually sat-
isfactory replacement for such Article or Section during the period of invalidity or restraint. If
the parties do not agree on a mutually satisfactory replacement within sixty (60) days after
beginning the period of invalidity or restraint, either party shall be permitted all legal or eco-
nomic recourse in support of its demands notwithstanding any provision in this Agreement to
1. This Agreement shall be in full force and effect from _____ (effective date) , to and
including (expiration date) and shall continue from year to year thereafter unless written notice
of desire to cancel or terminate the Agreement is served by either party upon the other not less
than sixty (60) and not more than ninety (90) days prior to (expiration date), or (month and day
of expiration date) of any subsequent contract year.
2. Where no such cancellation or termination notice is served and the parties desire to
continue said Agreement, but also desire to negotiate changes or revisions in this Agreement,
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either party may serve upon the other a written notice not less than sixty (60) and not more than
ninety (90) days prior to (expiration date), or (month and day of expiration or date) of any sub-
sequent contract year, advising that such party desires to revise or change terms or conditions
of such Agreement. The respective parties shall be permitted all legal or economic recourse to
support their requests for revisions if the parties fail to agree thereon. Nothing herein shall pre-
clude the parties from making revisions or changes in this Agreement, by mutual consent, at any
time during its term.
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EXPLANATION AND ANALYSIS OF THE
MODEL COLLECTIVE BARGAINING AGREEMENT
FOR THE FINISHING INDUSTRIES
Discussion of the Key Provisions in the Model Agreement
and Reasons Why the IUPAT, the FCA, and Signatory Employers
in the Finishing Industry Have Endorsed the Use of These Provisions
in Finishing Industry Collective Bargaining Agreements
INTERNATIONAL UNION OF PAINTERS AND
ALLIED TRADES, AFL-CIO, CLC
THE FINISHING CONTRACTORS ASSOCIATION
EXPLANATION AND ANALYSIS
OF IMPORTANT PROVISIONS
CONTAINED IN THE MODEL
COLLECTIVE BARGAINING AGREEMENT
In the building and construction trades, the relationship between an employer and a union
can commence in different ways.
The Painters and Allied Trades Labor Management Cooperation Initiative, FCA and
IUPAT strongly recommend that all signatory employers and IUPAT affiliated District
Councils and Local Unions utilize, whenever possible, the format for a “recognition” clause con-
tained in Article I of the Model Agreement. This recommended provision will establish a full
Section 9(a) relationship between the Union and the signatory employer. The provision obli-
gates both parties to negotiate in good faith with each other throughout the term of the
Agreement and during negotiations for renewal agreements. This is the strongest form of
“recognition” upon which the parties can agree. In addition, parties to a Section 9(a) collective
bargaining relationship will enjoy greater protection from the possibility of a rival union filing
an election petition in an attempt at replacing the Union as bargaining representative. This has
become an important benefit for Employers as it will help to eliminate disruptions to the
Employer’s business operation that can occur during rival representation campaigns. Both labor
and management representatives in the LMCI as well as the IUPAT and FCA have agreed that
it establishes an important cornerstone for the numerous training, safety, productivity and
efficiency, as well as wage and benefit provisions that follow in the recommended Model
Scope of Bargaining Unit
and Work Jurisdiction Clause
It is recommended that each Agreement contain a provision that will define the scope of
work that will be performed by each job classification. A provision of this nature will assist the
signatory employer and the labor organization in avoiding potential disputes concerning which
employee on a job site should or should not perform a given task.
For example, if the labor agreement finds the Employer recognizing the union as the
exclusive bargaining representative of “painters,” a “scope of jurisdiction” provision in the
Agreement should accurately describe the type of work that the “painter” may perform for the
Employer. The prototype for the “painters” scope of jurisdiction clause is contained in the
model agreement. Similarly, if the Agreement finds the Employer recognizing “glaziers,” “dry-
wall finishers,” or any other classification or category of work that is within the IUPAT’s juris-
diction, the “scope” language in the Agreement should define what each category of work will
involve. The International Union of Painters and Allied Trades Constitution contains precise
language that describes the scope of jurisdiction for each classification of employee.
As noted, a sample “scope of jurisdiction” provision dealing with the “painter” classifica-
tion is provided in the Model Agreement. The parties should modify this sample by including
descriptions of the work that will be performed by any other classifications that are described
in the recognition clause or other classifications to which the collective bargaining agreement is
Out-of-Area Jurisdiction Clause
The “out-of-area-jurisdiction” clause in effect extends the Agreement to all covered
employees (i.e., the classifications covered by the recognition clause) employed by the
Employer, wherever they perform work. The provision binds an Employer that seeks or obtains
work in a geographic area outside the area normally encompassed by its collective bargaining
agreement to comply with all provisions of the collective bargaining agreement of the IUPAT
District Council or Local Union that has jurisdiction where the work will be performed. This
means that, in the area in which the project is performed (“the away area”), the Employer is
required to pay the wage and fringe benefit rates and comply with conditions of the contract of
the District Council or Local Union in that area. If the Employer takes employees from its home
area to the away area, those employees must be paid the higher of the total package rates that
would apply under the collective bargaining agreement to which the Employer is a party, or the
collective bargaining agreement that applies in the away area. In applying this provision, the
home fringe benefit funds always receive the contributions due under the home collective bar-
gaining Agreement. If the away Agreement provides for a higher total package (wages plus
fringe benefits), the difference is paid to the employee as additional wages.The employee always
receives, as minimum wages, the higher of the two total package rates.
This provision is designed to eliminate problems and disputes before they can occur when
an Employer seeks to perform work in any area outside the geographic area that is encom-
passed by its principal collective bargaining agreement with the District Council or Local
Union. It enables the Employer to know that its work on the new project will be under and sub-
ject to an existing collective bargaining agreement that is applicable in the area of the project
and it allows the company to knowledgeably budget its labor costs for the project. The compa-
ny will know, when it bids for such work, precisely what wage and fringe benefit rates, and other
labor costs, may be applicable to it in performing its work. From the workers’ standpoint, this
provision allows each member to know that if requested to travel out of the normal geograph-
ic area to perform work for an Employer, he or she will be working under the IUPAT collective
bargaining agreement applicable to that other area and will be assured all of the rights that such
an agreement will provide.
Finally, this provision also helps to assure the signatory employer of fair competition in its
own geographic area. Companies from other geographic areas that seek to work in the contrac-
tor’s home area, when signatory to the provision, will be required to pay the same wage and
fringe benefit rates as the signatory contractor.
Many employers in the finishing industry perform work within the jurisdictions of two or
more District Councils or Local Unions. If an Employer expects that the nature of its business
will require it to perform work on projects that are outside the jurisdiction of the District
Council or Local Union party to the labor agreement, the labor agreement should contain what
is commonly called a “50%-50%” provision, similar to the language contained in Article III,
Section 1 of the Model Agreement.
Under the IUPAT Constitution, members of a District Council or Local Union are permit-
ted to travel to other jurisdictions to perform work on behalf of their signatory employer.
However, the Constitution requires each IUPAT affiliate to seek, from the signatory employer,
a provision that limits the number of employees that may travel. That clause requires the signa-
tory employer to hire at least 50% of its workforce from the away area. In determining whether
the 50%-50% requirement has been satisfied, supervision (working foremen) are included. The
requirement is applied on an “odd-even” basis. The contractor may bring the first employee
from another jurisdiction, the second must come from the job site area.The third then may come
from outside the area, the fourth from the job site area, and so on, on an odd-even basis, with
the employer selecting every odd numbered employee.
Selecting employees on this basis accommodates the legitimate interests of all parties. The
Employer is permitted to bring in key employees with a proven work history, and employees
from the job site area—who have helped build the industry in that area—will be assured of work
opportunities when an out of area contractor performs work within their Local.
Union Security Clause
A union security clause is a standard provision in every IUPAT and FCA labor contract.
This provision, also referred to as a “Union Shop Agreement,” contains a requirement that
employees must join, and maintain their good standing as members of, the union as a condition
of employment. While some court decisions have defined this membership responsibility in
terms of maintaining a “financial core” responsibility to the union during the term of employ-
ment, the language in the suggested and recommended provision satisfies all current legal
requirements for a union security clause.
The intent of the provision is to assure that the objective of the recognition language in the
contract is not diluted or defeated by the hiring of employees who have, or maintain, no obliga-
tion to the union. From the union standpoint, such language is essential to maintaining the
integrity of its status as the exclusive bargaining representative of employees of the company.
From the Employer’s viewpoint, this language is important for minimizing, to the extent possi-
ble, disputes and frictions among employees because of their affiliation, or lack of affiliation,
with the union.
The provision also is intended to assure that each employee in the bargaining unit fulfills
and maintains his or her obligation, as an employee of the company, to pay appropriate period-
ic dues and other allowable assessments, including initiation fees, to the Union so that the Union
can, in turn, have sufficient financial support from the employees to perform its collective bar-
gaining obligations. In this manner, the contract alerts, and advises, all employees concerning
their obligations to the Union.
There are some areas where the recommended union security clause cannot be lawfully
enforced because of state legislation—“right to work” laws. The recommended language
addresses this possibility, and provides that its provisions will not apply to the extent prohibited
Dues and Administrative Fees Checkoff Provision
A “checkoff” provision in a finishing industry contract is commonplace. It constitutes an
agreement by the Employer to collect from the wages of each employee the amount of period-
ic dues and assessments that may be required under the union’s bylaws. Such provisions are law-
ful when certain fairly simple rules are applied by the parties.
Federal law permits an employer to assist a labor organization by collecting dues through
a “checkoff” system and remitting those payments to the Union on a periodic basis. A checkoff
system can be used provided the Employer has received from the employee, on whose account
such deductions are made, a written authorization that will acknowledge that the employee has
agreed to have his or her dues or assessments deducted from wages by the Employer. It is also
required that the written authorization contain a provision that will permit the employee to
revoke his or her “authorization” after one year or as of the termination date of the collective
bargaining agreement, whichever is sooner.
The collective bargaining agreement between the parties should contain a specific provi-
sion that clearly states the rules and respective obligations of the parties concerning the check-
off system. The language recommended in the Model Agreement is compliant with all legal
guidelines as of the date of this publication. The provision requires that, for each hour worked
by an employee of the company, the Employer will deduct from the employee’s wages the
amount of dues and/or assessments required to be paid to the Union under its bylaws and the
Employer will remit the amounts checked off from employee wages to the Union, not later than
the _______________ day of the following month. The provision also requires that the Employer
receive a copy of the signed authorization by the employee (generally, the Union will maintain
such records and can easily transmit a copy of the authorization card to the employer). Because
the lawfulness of a checkoff provision depends on the appropriateness of the language con-
tained in the authorization card, the Union should be careful to assure that the “authorization”
language includes the statutorily required revocability right of the employee.
The provision in the Model Agreement also contains language that is designed to address
circumstances common to the finishing industry in which an employer may perform work in the
area of another District Council or Local Union that has a different format for its dues and/or
administrative assessment checkoff system. The recommended language establishes a process in
which the Employer, when working in an area where a different District Council or Local Union
contract may apply, will be required to utilize that Union’s checkoff system for work on the proj-
ect and will be relieved of its responsibility to transmit dues for the work in question to the
home District Council or Local Union. The language was designed to avoid confusion concern-
ing this subject when an Employer is required to travel and work on different projects in vari-
ous geographic jurisdictions.
ARTICLES VI and VII
Function of Management and Efficiency of Operation Clauses: Provisions
to Assure Productivity and the Efficiency of the Signatory Employer’s Operations
A collective bargaining agreement is intended to establish rules that govern wages, hours,
and terms and conditions of employment. As a result, most provisions in the Agreement will be
devoted to these subjects. However, it is also important, in the cooperative collective bargaining
relationship, that the Agreement establish enforceable rights for the contractor as well.
Employers have a right to an assurance that the Employer has not given up its right to
effectively manage its business operations simply by signing a union contract. In addition, the
Employer should be assured that the Union will not undermine the efficiency of the Employ-
er’s operations by restricting the use of improved technology, or by limiting production.
One clause strongly recommended for inclusion in a collective bargaining agreement is set
forth in Article VI of the Model Agreement, entitled “Function of Management.” That is a strong
“management’s rights” provision that assures the Employer that it has the right to manage its
business operation, determine what equipment to use, and conduct its business without interfer-
ence by the Union or members of the bargaining unit. The provision should also assure that the
Employer has the right to establish a reasonable drug policy, reflecting this industry’s commit-
ment to a safe and productive workforce. Article VII, titled “Efficiency of Operations” is a clause
designed to complement the management rights clause by stating a firm commitment by the
Union to promote productivity and technological improvement among members of the work-
Drug-Free and Alcohol-Free Work Place
All parties to the collective bargaining relationship should insist that a workplace be free
of drugs and alcohol. An employee who attempts to work under the influence of an illegal drug
or alcohol presents a danger to himself or herself, as well as to other employees. The employee
may also present a threat to the Employer’s property and equipment and is likely to negatively
affect the efficiency of others in the workplace.
The Model Collective Bargaining Agreement reflects the strong commitment of the FCA
and the IUPAT to a safe, productive, and drug-free workplace. Under the recommended con-
tract language, the individual contractor has the right to adopt a strong drug/alcohol policy that
is tailor-made to its particular needs, as well as the needs of its customers. Similarly, the
Employer Association is given the same right to adopt an effective policy on an areawide basis.
Such policies are still resisted in some industries. The language of the Model Collective
Bargaining Agreement makes it clear that this industry is different, and is willing to take con-
crete steps to insure that a quality product is delivered on time, in a safe environment.
Laws regarding drug and alcohol testing vary greatly from state to state and it is important
that such policies be reviewed to make certain they are in compliance with applicable law.
Enhancing the Ability of Signatory Employers
to be Competitive When Bidding on “Prevailing Rate Work”
“Prevailing rate” work is important to the unionized sector of the construction industry.
Unfortunately, in some circumstances, nonunion contractors have an unfair advantage over sig-
natory contractors in performing that work.
For example, in some jurisdictions, signatory employers may have difficulty bidding on
prevailing rate projects as a result of rules that apply during the bidding process and the dura-
tion of the project. When a prevailing rate project is put out for bid well in advance of its start
date, and where the project may take a considerable time to complete, the ability of a signatory
contractor to successfully be awarded the work may be negatively affected. In such circum-
stances, the signatory contractor might be required, under the labor agreement, to estimate the
wage and/or fringe benefit rates years in advance and formulate its bid, assuming the payment
of such wages or fringe benefit rates. By contrast, the nonunion contractor may have to pay its
employees only the “prevailing rate package” that was in effect at the time the project was bid.
Thus, if the project is being bid one year in advance of its start date and will take two years to
complete following the start date, the nonunion contractor may be, in essence, bidding the job
on the basis that its wage and fringe benefit rates will be frozen for a period of three years. The
signatory contractor, clearly, has a serious competitive disadvantage.
The Model Collective Bargaining Agreement contains specific language that recognizes
the importance of prevailing rate work to our industry, and allows the signatory contractor to be
more competitive on that work.
The recommended provision will permit the signatory employer to bid the job at the
wage/fringe benefit rate that applies at the time the bid is being submitted, and to “freeze” its
rates on the project throughout its duration on jobs where the local laws give the nonunon con-
tractor the right to do so.
In addition, the recommended provision also requires the Employer to submit its wage
and benefit data to appropriate government agencies that administer and enforce Davis-Bacon
or State or local prevailing rate laws. The importance of this provision cannot be understated.
Since the Employer will be required to pay the rates set forth in the labor agreement, it is vital
that the amounts of those rates be made known to government agencies so they will be consid-
ered when prevailing rates in the area are established. A contractor that fails to submit its wage
and benefit data as required will damage its company’s ability to compete on government-fund-
No Strikes/No Lockouts
A necessary commitment in any collective bargaining relationship involves a promise by
the Union, during the term of the labor agreement, not to engage in any strikes, work stoppages,
slowdowns, or unlawful disruption(s) of the Employer’s operations. The recommended contract
language reflects this industry’s firm commitment to the construction user that our projects will
be completed without unnecessary delays due to labor disputes.
In return for the union’s commitment not to “strike” during the term of the Agreement,
the parties also agree to an all-encompassing dispute resolution or grievance procedure that will
bring about a peaceful resolution of disputes. Such a procedure, when part of a collective bar-
gaining agreement, will assure the parties that any disputes that may arise during the term of the
agreement will be resolved by having the matter submitted to a neutral panel or an arbitrator.
Second, the Employer must also, as part of the same provision, agree that it will not “lock-out”
employees during the term of the Agreement. A lockout involves circumstances in which the
Employer, in order to secure some concession from the union or its employees, refuses to allow
the employees to work, even though the collective bargaining agreement is in full force and
effect. The Model Collective Bargaining Agreement contains limited exceptions to the Union’s
“no-strike” commitment. The Agreement recognizes that the Union should have a right to with-
hold its labor in circumstances where its members would be required to cross or work behind a
picket line or perform struck work, or in some other circumstances (e.g., where the Employer
has failed to make appropriate wage payments or fringe benefit contributions). Specific lan-
guage dealing with these exceptions is contained in other provisions in the Model Agreement.
In every collective bargaining relationship, the parties should agree upon a system of
resolving disputes. In the absence of a dispute resolution mechanism, even the simplest problem
or issue that may arise during the term of the Agreement can result in work stoppages, strikes,
lockouts, and/or litigation between the parties. It is necessary, therefore, that the Agreement
contain a process that will eliminate, with narrow exceptions, disputes that will force the parties
to resort to the courts or have the union engage in economic action against the Employer.
There are numerous acceptable formats for a grievance and arbitration provision that
have been approved, and successfully implemented, by parties throughout the United States
and Canada. In the Model Agreement, we focus on two basic systems for dispute resolution that
are fairly common in our industry. The first alternative is a system that is successfully used in cir-
cumstances where multiple employers have formed an association, possibly an FCA Affiliate, in
the geographic area where their principal places of business are located. When an Employer
group is organized in this manner, the parties frequently establish a “Joint Trade Board” (or sim-
ilar entity under a different name) for the purpose of hearing and resolving disputes that may
arise between the District Council (or Local Union) and any Employer bound by the area col-
lective bargaining agreement. A “Joint Trade Board” (or similar entity) usually comprises an
equal number of representatives appointed by Management and the Union. Its purpose is to
receive evidence concerning any grievance that may be submitted to it and issue a final and
binding determination in relation to the issue. A provision for dispute resolution that assumes
the existence of a “Joint Trade Board” is provided in the first alternative provision in Article XI
of the Model Agreement. When a Joint Trade Board does not exist and the union and signato-
ry employer must establish their own system to resolve disputes, a stand-alone grievance and
arbitration procedure will be needed. A recommended provision for this type of grievance/arbi-
tration system is set forth in the second alternate provision in Article XI.
Grievance Procedure (Making Use of a Joint Trade Board Process)
When a Joint Trade Board has been established by the District Council (or Local Union)
and an area employer association (or a group of employers acting in their mutual interest), a
provision of the kind contained in Article XI may be used. Bearing in mind that the parties to
any labor agreement should feel free to tailor a grievance procedure that satisfies their own par-
ticular needs, this recommended provision contains the types of rules and regulations that
should be typical in such a process.
The provision describes the establishment of a “Joint Trade Board,” designates the num-
ber of members of the Board and the manner of their appointment by the respective parties,
and states the method by which voting will occur and the way in which the officers of the Joint
Trade Board (Chairperson and Secretary) will be selected.
The recommended language also, importantly, states the authority of the Board to hear
and determine all cases and describes its powers (e.g., to award or assess remedies, damages, and
penalties for violation of this agreement, etc.) in clear terms. The Board is also given the power
in appropriate circumstances to investigate matters coming before it and, when necessary, to
conduct audits of employer records, recommend changes in the Agreement and appoint other
persons to assist the Board in the performance of its duties. The clause states that the Board will
have final and binding authority to issue a decision and contains certain other rules that will help
to avoid conflicts of interest among members of the Board. It also describes the manner in which
the expenses, if any, of the Joint Trade Board will be funded. In rare circumstances, when the
Joint Trade Board may deadlock and be unable to reach a decision, the provision contains lan-
guage that will allow the resolution of the deadlock.
Finally, the recommended language reasserts the “no-strike” or “no lockout” commitment
by the parties in relation to disputes that are encompassed by the grievance procedure, but with
some important exceptions. A failure or refusal by the Employer to pay wages and fringe ben-
efits to employees; or an Employer failure to participate in the grievance procedure or to honor
and apply a final and binding decision may, under this provision, permit the union to engage in
a lawful strike.
Model Grievance Procedure When a Joint Trade Board Does Not Exist
In circumstances when a Joint Trade Board has not been established, or when the parties
desire to have disputes resolved independently of the procedures of a Joint Trade Board, the col-
lective bargaining agreement should contain a simplified process that will inform the Union, the
Employer, and the employees of the procedures and methods that will be utilized for obtaining
a final and binding resolution of a grievance.
There are many different formats for a “grievance and arbitration” procedure that are
used throughout the industry. Essentially, the provision should contain language describing the
nature of the “disputes” or grievances that may be resolved by using the procedure, the steps
that may be taken to invoke the grievance process and the manner in which the parties will seek
to resolve the issue(s) or, in the absence of a solution, have the matter determined by a neutral
The recommended provisions in Article XI of the Model Agreement contain language that
will allow for resolution of most disputes between the parties. Although the parties should feel
free to alter or modify this language to suit their own needs, it is best to keep the language fair-
ly simple and understandable and presented in a way that all employees having grievances can
easily comprehend. Thus, the first section of the recommended provision describes the type of
dispute and/or grievance that may be heard by using this process. The Section dealing with
“steps” in the grievance procedure explains the manner in which a claim may be presented by
the Union or an employee and the communications among the parties that should occur in
order to resolve the issue. When an issue cannot be resolved by agreement of the parties, the
next Section describes the rules that will govern submission of the dispute to final and binding
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neutral arbitration and establishes guidelines for that arbitration process. For example, an arbi-
trator will not be permitted to alter, modify, or change any provision contained in the collective
bargaining agreement. The recommended language also states rules that assure that the neutral
arbitrator will be paid for his or her services. All of these provisions are designed to avoid poten-
tial disputes that could otherwise occur concerning the cost of the proceeding or other proce-
dural rules relating to this process.
Exclusive Hiring Hall
Trades unions and employers of trades personnel are permitted by law to agree that the
sole source of employment referrals and hiring by a signatory contractor will be through a union
hiring hall. A provision of this nature, in which the Employer commits that it will not hire any
employee, from any source, if the employee was not referred through the Union’s “exclusive”
hiring system is commonly known as an “exclusive hiring hall.”
The exclusive hiring hall provision serves a variety of purposes that benefit the Union, its
members and the signatory employer. It is an important part of the system of assuring the avail-
ability of skilled journeypersons for each signatory contractor in a given geographic area. The
system will prioritize the referral and placement of skilled workers who reside in the geograph-
ic area that is serviced by the signatory employer, thus assuring that the pool of trained workers
upon which signatory employers rely will have greater job security and will remain in the area
and available for work assignments to local contractors.
In an exclusive hiring hall system, the rules that apply are fairly straightforward: the
Employer can hire employees only from among qualified workers who are referred to it by the
District Council or Local Union Hiring Hall; the Employer will have a right to reject any indi-
vidual referred by the union; the District Council or Local Union is required to refer applicants
to Employers through the use of objective, nondiscriminatory criteria, but can take into account,
in prioritizing its referrals to Employers, an applicant’s education and/or training and the appli-
cant’s residency (priority may be given to local residents). The suggested provision will greatly
assist Employers in manning projects with a skilled workforce. It allows the Employer to recall
employees who have worked for the Employer within the past twenty-four (24) months. In addi-
tion, the model clause allows the Employer to request employees who have special skills or cer-
tifications necessary for a particular project. The provision also contains language that permits
an Employer to hire from any source if the District Council or Local Union cannot fulfill the
Employer’s hiring needs within a specified grace period.
A model “exclusive hiring hall” provision that can be used in most trades union agree-
ments in the finishing industry is set forth in Article XII of the Model Agreement.
The recommended model provision, while appropriate for most trades unions and con-
tractors in the finishing industry, contains some language, specifically the assignment of workers
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through the use of priority “groups,” that will need to be reviewed by the parties and their coun-
cil on a local basis. The guidelines or standards for what may or may not serve as a priority for
the purpose of an assignment to a specific “group” has been the subject of many cases decided
by the National Labor Relations Board. Generally, objective standards such as skills and train-
ing can serve to prioritize the referral of individuals in an exclusive hiring hall. So also can pri-
ority be given to residents of the geographic area that will be serviced by the collective bargain-
ing agreement. Union membership cannot serve as a reason for prioritizing or referring any
individual in an exclusive hiring hall.
To the extent that the parties may attempt to negotiate alternate or substitute language for
the “priority” provision of an exclusive hiring hall, it is recommended that they seek an opinion
from counsel concerning the lawfulness, under then prevailing legal standards, of such language.
Top Workplace Performance Plan
The parties should note that the recommended language contained in Article XII of the
Model Agreement also has a provision, Section 7, that implements the recommended Top
Workplace Performance Plan approach to providing skilled workers through the use of a Union
Hiring Hall. This provision places a responsibility upon the Employer to notify the Union when
an employee has engaged in misconduct, or has failed to meet accepted standards in the industry.
The Union can fulfill its role under this provision only if Employers provide such information,
rather than relying on the expedient of simply laying off the employee. The provision should be
read carefully and understood by the parties, especially union workers who will be subject to this
An employee who is discharged for just cause can be penalized through a suspension of
his/her referral rights in the exclusive Hiring Hall and, if the employee is discharged for just
cause three (3) times within a twenty-four (24) month period, the employee can be denied refer-
rals under the system. The provision, hopefully, will discourage unskilled or unqualified workers
from seeking work through the referral system or encourage those workers whose skills or atti-
tudes are substandard to receive training and assistance to improve their work performance.The
provision is designed to be part of the broader policy in which the IUPAT, the FCA, and all sig-
natory employers make a commitment to providing excellence in the services that are per-
formed on behalf of owners and users in the industry.
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Apprentices are the future of our industry and the lifeblood of the IUPAT. This industry
can succeed only if all parties to a cooperative bargaining relationship recognize the need for
ongoing training to provide employees with the skills needed to deliver a high quality product.
A commitment to an apprentice system will also provide a means by which individuals may
attain the skills needed to become part of a highly paid craft.
In most geographic areas covered by an IUPAT labor contract, the union and dedicated
signatory employers have invested millions of dollars in state-of-the-art training programs that
produce, upon graduation, the most highly skilled journeypersons in our industry. The continu-
ing success of these programs depends on strict adherence, by all contractors and the Union, to
the rules and regulations that govern the jointly administered training system.
Part of maintaining this important system of training and retraining workers in the indus-
try is a requirement that each collective bargaining agreement contain a provision that will
assure that signatory employers hire their apprentices only through the rules established by the
jointly administered IUPAT apprentice program in the area.
Employers are strongly encouraged to hire apprentices, and to actually utilize apprentices at
the job site to the maximum extent (i.e., ratio) permitted under the Agreement so that our industry
may be assured of an adequate pool of skilled employees in the future. Classroom training is only
a small part of the Apprentice Program; on-the-job training is critical to the Program and is
dependent upon the cooperation of employers and member contractors of the FCA. Employers
should develop programs within their organization to insure that each individual apprentice is
acquiring the kind of training necessary to become a skilled journeyperson.
Hiring of Apprentices
Each collective bargaining agreement in the finishing industry should contain a provision
that governs how the signatory employer will obtain qualified journeypersons (e.g., through an
exclusive hiring hall). It is equally important that the labor contract protect and reinforce the
system of training and education for apprentices in the industry. A provision that will accom-
plish this goal is provided in the Model Agreement at Article XIII, Section 1.
The apprentice programs established by the IUPAT, the FCA, and other signatory employ-
ers throughout the country require an individual to be “indentured” and complete a course of
three to five years classroom and on-the-job training to develop the requisite skills of a jour-
neyperson (depending on the individual trade). These courses and programs are mandated to
satisfy federal and state guidelines and should be constantly reviewed and improved by local
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For these programs to be effective, it is important that signatory employers, under an
IUPAT collective bargaining agreement, only have apprentices who are indentured and in
attendance in an approved program. Only by complying with this rule can signatory employers
know that their apprentices are receiving the proper training and possess the appropriate skills.
All Employers in the industry reap substantial benefits from compliance with the apprentice-
ship standards as these same workers will eventually become the skilled journeypersons of the
Ratio of Apprentices to Journeypersons
It is recommended that each collective bargaining agreement contain a provision that
establishes the number of apprentices that may be employed by any contractor at any time. Such
a provision should also become an “area standard” in each geographic area and be equally and
uniformly applied. A model provision containing the typical “journeyperson/apprentice” ratio
clauses found throughout the industry is provided in Article XIII, Section 2 of the Model
Agreement. This clause serves the purpose of creating work opportunities and insuring that the
apprentice program will provide quality training through classroom and work experiences
under the general direction of skilled journeypersons.
We take great pride in having the most skilled and productive employees in the industry.
This did not happen by accident. Rather, it is the end product of a comprehensive apprentice
training program. However, that program can provide sufficient training opportunities only if
the parties adopt the apprentice ratio established in the model Collective Bargaining
Agreement. Adoption of that ratio must be coupled with the firm commitment of the Employer
to hire apprentices, and to actually utilize apprentices at the job site to the maximum extent per-
WAGE AND HOUR PROVISIONS
The collective bargaining agreement should contain clear language describing the wage
rates that journeypersons and apprentices will receive, the manner in which they will earn “pre-
mium” pay, a definition of the normal work week and work day, and other special provisions
concerning direct compensation or hours of work.
In the building and construction trades industries, it is common for the parties to negoti-
ate for the payment of “hourly” straight time amounts that will be paid by the employer on
behalf of each employee. This is sometimes referred to as the “total package.” The total package
will then be broken down, usually by the union pursuant to its internal rules and regulations,
into amounts that will be paid as “wages” and other amounts that will be dedicated as contribu-
- 14 -
tions to various fringe benefit funds [for example, the welfare, pension, annuity (if any), appren-
tice, IUPAT-FTI, IUPAT-LMCI, or vacation fund]. Generally, in such a system, the Employer
and the Union will negotiate for specific increases in the amount of the hourly “total package”
to be effective as of a stated date each year. Then, on an annual basis, the Union (in accordance
with its internal rules and regulations) will inform the signatory employer(s) of the specific
amount(s) of the scheduled increase that will apply to wages and the amount(s), if any, that will
be added to the Employer contributions to various fringe benefit funds.
In contrast, some areas allocate the total package increase at the bargaining table, specifi-
cally designating a portion of the package for wage increases and the remainder for increased
contributions to those fringe benefit funds that are in need of additional funding.
Obviously, the parties must carefully consider the financial condition of their fringe bene-
fit funds during contract negotiations. It would be a serious mistake, for example, to allocate all
of the package increase to wages if the Health and Welfare Fund was in great need of addition-
al contributions. If the parties fail to consider these issues, they could end up with a multi-year
collective bargaining agreement that does not provide for necessary increases to fringe benefit
funds during the terms of the contract.
In drafting a contract provision that will conform to this customary system of negotiation,
the provision should clarify that the “total package” or “straight time” rate for journeypersons
working under the Agreement is established at a specific amount(s), which may vary depending
on the classification of the worker, as of the effective date of the collective bargaining agree-
ment. The provision should also clearly indicate when, and in what amount, increases in the
“total package” or “journeyperson straight time rate” will take effect. Finally, the provision
should state that the scheduled journeyperson rate will be allocated among wages and fringe
benefit funds in accordance with union rules and regulations.
A sample clause is provided in Article XIV of the Model Agreement.
In addition to language describing the “total package,” it is advisable to set forth in the col-
lective bargaining agreement, or as an appendix thereto, a chart that will clarify for the parties
the precise amount that will be allocated to wages and fringe benefit contributions (as well as
other appropriate contributions or assessments contained in the collective bargaining agree-
ment) as of the effective date of the contract. This chart should be updated each year during the
contract term when and if an allocation of new money or “total package” increases occur.
Finally, when the labor agreement provides for different rates for different job classifica-
tions, e.g., industrial rate, commercial rate, bridge rate, etc., the Agreement should contain a sec-
tion that clearly defines when and under what circumstances, and on what work, each rate is
applicable. This will reduce confusion and disputes about which rate may apply on a segment of
a job. An attempt should also be made to reduce the number of job classification rates contained
in the Agreement, whenever possible.
An example of how this chart may be constructed is contained in the Model Agreement.
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The payment of apprentices is, as a general rule, a subject matter that is negotiated sepa-
rately from the payment of journeyperson rates. In most instances, the Union and the Employ-
er will reach agreement on a specific level of wages that will apply to apprentices, depending
upon the level of skill and experience that they have achieved in the apprenticeship program.
The wage scale should recognize that the more an apprentice has advanced in the program, in
terms of classroom and on-the-job training, he or she will earn additional wages commensurate
with that experience.
It is commonplace for the parties to negotiate the apprentice rates at a specific level or
percentage of the “journeyperson” hourly rate. The contract provision should state whether the
“percentage” applies only to the actual hourly wage rate or to the “total package,” which
includes the fringe benefit contribution rates. Some parties find themselves engaged in griev-
ances and disputes concerning whether the Employer is obligated to pay the full fringe benefit
contribution rate for an apprentice, when the language of the provision is not clear.
The parties should carefully consider and negotiate the specific “percentage” of the jour-
neyperson hourly wage rate that an apprentice will receive, at different levels of experience in
the apprentice program. In establishing a minimum rate for apprentices, the parties must con-
sider two issues: the rate should be set at a level that keeps the contractor competitive, and set
high enough so that entry level apprentices receive a rate that is competitive with what they
could receive from other employment that they may pursue. It is also recommended that the
parties give careful thought to the issue of fringe benefit contributions for apprentices—some
fringe benefit funds permit a reduced contribution on behalf of apprentices, while others do not.
If the fringe benefit rates for apprentices are to be different than the rate(s) for journeypersons,
the parties may need to receive the permission of the Board of Trustees of the Benefit Fund for
such different contribution rates.The parties should consider the impact of providing high fringe
benefits to apprentices, the rates that are fair or necessary in the area, and rates that are com-
petitive and consistent with the need to attract apprentices to the program.
A sample “apprentice wage” provision is provided at Article XV of the Model Agreement.
Payment of Wages
The collective bargaining agreement should contain provisions that define the manner in
which the Employer will transmit wage payments to employees so the parties understand their
respective rights and responsibilities in relation to this important subject. Such language is nec-
essary to inform and advise each employee when and how wage payments will be made.
- 16 -
The recommended provision in Article XVI of the Model Agreement is fairly straightfor-
ward. It provides that employees be paid on the job site weekly, on a specified day of the week.
Alternatively, the contract may allow for the direct deposit of an employee’s wages upon mutu-
al written agreement of the Employer and the Local Union or the employee. Payments must be
made prior to the close of the work day. The provision allows the parties to agree on alternate
means of payment; for example, payment by mail. The provision also limits the amount of wages
that can be withheld (for payment at a future payroll period) by the Employer. Other language
contained in this provision is designed to be practical and not burdensome on the Employer
while assuring the employee that his or her wages will be paid in a proper manner. For exam-
ple, the provision requires that wages be paid by means of a negotiable check, that a statement
of all deductions and withholdings from wages be provided with each payment, and that the
statement also provide information concerning the hourly rate of pay, the dates and hours
worked and other information required by law.
Work Day and Work Week
An important provision involves language that will define the “work week” and “work
day” for the Employer, the Union, and the employees. While this subject matter may appear, at
first blush, to be unrelated to “wages” and other compensation provisions in the Agreement, the
definition of the work week and work day can have a significant impact on the payment of
hourly compensation for each employee.
Language in the collective bargaining agreement will establish the hourly wages to be paid
to journeypersons and apprentices, as well as the amount(s) of fringe benefit contributions to
various employee benefit funds, etc. Still other provisions will govern the amount(s) of premi-
um pay, overtime pay, travel pay, etc. Many, if not all, of these provisions are inextricably tied to
how the “work week” and “work day” are defined. For example, if an Employer is required to
pay overtime rate for more than eight (8) hours paid in a day, when does the “day” begin and
end for the purpose of overtime computation? Similarly, if the contract requires overtime pre-
mium pay for over forty (40) hours paid in a given week, when does the “week” begin and end
so that the parties can determine whether more than forty (40) hours were paid in a specific
The provision recommended in the Model Agreement defines the “work week” and “work
day.” The provision also provides substantial flexibility that will allow the Employer to schedule
work in response to project needs. It deals with circumstances in which the Employer may wish
to utilize four (4) ten (10) hour shifts as the regular work days/work week in order to accommo-
date the needs of a project, or for efficiency and productivity reasons. In a similar manner, the
model language permits the Employer to use “make-up” days when needed where a holiday
falls during the normal work week or inclement weather has resulted in a loss of production.
“Make-up” days, as an alternative for overtime or other premium work to make up for lost time
can occur under recommended language, except in relation to Sunday work.
- 17 -
The Model Agreement also recommends language relating to “shifts” and shift “premi-
um.” This language is recommended to allow IUPAT members who work shifts to be properly
compensated. It is also designed to help keep the Employer competitive and productive on
work where shifts may be scheduled.
Due to the nature of our industry, a labor agreement that merely refers to a “second shift”
or “third shift” may cause confusion and disputes. Times should be assigned to shifts but the
Agreement should also be flexible. For example, on an exterior paint job the steel may be wet
in the morning in the fall of the year so start time may be scheduled for 10:00 a.m. Which shift
is it? As simple as this question may be, the answer to it has resulted in disputes. The recom-
mended language, therefore, suggests that the parties agree to a payment of a shift differential
in a flat amount or percentage above the hourly pay scale and be flexible in its application, tai-
loring the provision, when appropriate, to suit specific area and job site needs.
The provision is designed to keep the union finishing industry contractors more competi-
tive against nonunion competition, especially in relation to retrofit or repaint work that is in
many cases performed at night when facilities are not in use.
An overtime provision is standard in virtually every collective bargaining agreement. The
language in the provision should be keyed to the basic definitions of the “work day” and “work
week.” The amount(s) of the overtime premium rate may be payable by the Employer for all
hours paid in excess of the regular “work week” or in excess of the regular “work day.”
An overtime provision should also define precisely whether premium payments will
be required for Saturday or Sunday work and, if so, what the rate(s) of pay will be for such
Generally, overtime is paid at time and one-half the regular rate of pay. Some unions and
employers have agreed on additional payments for Saturday or Sunday work or for work that
is continuous and runs into the next scheduled shift (e.g., round-the-clock work). These issues
should be carefully negotiated by the Employer and the union. Whatever agreement is reached,
it should be plainly stated in the overtime provision so that both parties, and the employees,
understand the rates of pay that will apply in the circumstances.
Overtime provisions should be negotiated in light of market conditions. Negotiating
a restrictive overtime provision may hurt both parties by restricting work opportunities
for Employers and employees alike. Employers may need additional flexibility in order to
perform work and attract new customers, while competing with nonunion competition.
Accordingly, although the recommended language will require payment of overtime premium
pay for hours paid beyond the normal work day or work week, the language will permit use
of a make-up day on Saturday, at regular rate, where make-up days do not exceed the forty
- 18 -
(40) hour requirement. Sunday work requires a mandatory payment of overtime rate under
the recommended language. Finally, pyramiding of overtime rates is prohibited under this
Breaks and Clean-up Time
Each collective bargaining agreement should contain a specific provision explaining when,
and for how long, breaks or clean-up time may occur. These provisions are important to main-
taining worker efficiency and productivity, while recognizing the need for the appropriate rest
periods. The provision is also necessary to avoid potential disputes at the work site.
In the finishing industry, the subject of breaks normally involves at least two distinct cir-
cumstances: employees working at a normal construction, repair or maintenance work site; and,
employees working on “full-containment” jobs. The model language suggested in Article XVIII
deals with each of these circumstances.
“Non-organized” breaks should be encouraged rather than requiring “organized” breaks
(“non-organized” break also means break takes place at or near where work is being performed
and employees need not meet in a designated area for break). An organized break will require
all employees to cease work at a specific time. On most jobs, this is impractical and inefficient.
Some employees may be engaged in important work that needs finishing before a break can be
taken, while other employees may be able to take a break at a specific time with no negative
effect on their productivity. By using a “non-organized” break system, all employees will be per-
mitted a break at a time convenient to the specific assignment or task they are performing. The
model language recommends that the non-organized break occur at the approximate midpoint
of the pre-lunch work time on each shift (see Article XVIII, Section 1).
In relation to full containment or hazardous jobs, the model provision recommends a dif-
ferent approach to the subject of “breaks.”The advent of containment on abrasive blast jobs and
in other job environments has created circumstances in which a mid-morning break, otherwise
required by the collective bargaining agreement or local practice, can cause a loss of production
that may range from forty-five minutes to an hour, depending upon conditions at the work site.
These circumstances generally develop when employees are required to leave a containment
area, remove protective equipment, take their break, and then re-equip themselves for entry
into the hazardous area, once again.
When the parties to a collective bargaining agreement are confronted with such circum-
stances, the Employer and the Union should be freed from the restrictions contained in the
Agreement (or local practice) and able, on a project-by-project basis, to establish more reason-
able rules that will assure the needs of the employees, while maintaining greater efficiency and
productivity at the job site.
- 19 -
Most labor contracts contain provisions requiring that employees receive a day off, with or
without pay, on certain holidays that occur throughout the year. In order to allow the Employ-
er and the Union, as well as the employees, to plan their work and personal schedules, the col-
lective bargaining agreement should precisely indicate which days of the year will be scheduled
“off work” for holiday observance. The labor agreement should also describe whether employ-
ees are to be paid on holidays when they are not working and the manner in which they will be
paid if they are required to work on a holiday.
The recommended provision in Article XIX accomplishes these objectives. It alerts the
Employer and the employees concerning which designated holidays the parties will observe. It
also contains a provision that will require the payment of premium pay at one and one-half (11/2)
times the regular hourly rate if the employee is required by the Employer to work on any desig-
nated holiday, but does not require payment of wages if no work on the holiday is performed.
It is also worthy of note that State and National Election Day is a designated holiday in
the recommended Model Agreement. This joint commitment by the parties reflects the impor-
tance they attach to active participation in the political process. Individuals who hold public
office adopt laws or policies that affect our industry, including rules that regulate bids and
awards of contracts on public-funded projects, laws that regulate our industry, and laws that gov-
ern how contractors are paid and what they pay for workers compensation. The recommended
language is designed to allow and encourage full participation in our democratic system by all
In most areas and jurisdictions, employers will be required to provide some level of com-
pensation to employees who are scheduled to report to work, with no work being available
when he or she arrives at the job.
When an Employer schedules or advises an employee to report to work, it should be
required to compensate that employee for at least a minimum number of hours. Not only will
such a provision act as an incentive for the Employer to schedule only those employees who are
actually needed on a job, but it will provide some compensation for the employee who may have
otherwise turned down other available work in order to accept the assignment to the Employ-
Provisions relating to “reporting pay” involve varied styles and formats. Generally, the par-
ties may also wish to negotiate language concerning the amount of pay that an employee will
receive if he or she reports to work and is thereafter sent home before the end of his or her shift.
- 20 -
The language suggested in the Model Agreement is only one of many standard clauses that
deal with these issues. The parties should negotiate concerning whether such a clause is required
in the labor agreement and the specific amount(s) of wages that will be paid in the circum-
stances. In addition, some parties have negotiated specialized language related to “reporting
pay” that will excuse, or eliminate, the payment by the Employer when the shortened work
day results from circumstances that are beyond the control of the employer (e.g., inclement
weather, shut-down of the job site beyond the control of the Employer, etc.).These issues should
also be discussed between the parties before settling on the final language of a reporting pay
Although some Employers in the industry only seek and accept work within the confines
of a specific geographic area, other Employers retain a workforce that may be called upon to
travel to areas outside the normal geographic area in which they live or in which the Employer
performs its customary work.
If employees are required to travel on behalf of the employer, it is advisable that the
parties negotiate a provision that will explain to the Union and the Employer precisely the
obligations the Employer may have in relation to travel time by the employee and payment for
reasonable accommodations and board. The use of such a provision in a labor agreement will
often avoid disputes that may occur concerning whether certain expenses or payments should
or should not have been incurred or made.
When members of the bargaining unit will be required to travel outside a specific geo-
graphic area, a provision of the kind provided at Article XXI of the Model Agreement will assist
the parties in determining the rate of pay/compensation for the employee on his or her travel,
as well as the appropriate payment or reimbursement for room and board.
CONTRIBUTIONS TO FRINGE BENEFIT,
INDUSTRY PROMOTION, POLITICAL, AND OTHER FUNDS
Almost every collective bargaining agreement will contain provisions dealing with contri-
butions by the employer to various fringe benefit and other funds. In the construction sector of
the finishing industry, fringe benefit funds are generally established as separate legal entities
that are governed by an independent Board of Trustees comprising individuals knowledgeable
about the industry who are appointed, in equal numbers, by labor and management. The indi-
viduals who accept an appointment as a member of a Board of Trustees, in turn, agree to accept
substantial responsibility that their actions and conduct as trustees will be solely on behalf of the
participants and beneficiaries in the trust fund. Provisions in the Labor Management Relations
Act of 1947, as amended, and the Employee Retirement Income Security Act (ERISA) inform
- 21 -
these trustees of their legal responsibilities and require that they act as fiduciaries in relation to
all matters that concern the governance and operation of the trust fund. The trustees may also
have additional duties that arise under the Agreement and Declaration of Trust.
Trust funds may be established for different purposes. A welfare fund may have as its pri-
mary purpose the provision of hospitalization, medical, life insurance, disability, severance, and
other related benefits to participants and beneficiaries. A pension fund will be established in
order to provide retirement benefits to participants, permanent disability benefits, and/or joint
and survivor benefits. An apprenticeship fund is established as a funding vehicle for training
apprentices and/or journeypersons in the industry. A labor management cooperation fund may
have a variety of purposes, including industry promotion. A political action fund, though estab-
lished under different laws and rules, may also be structured as a separate legal entity that will,
in turn, collect voluntary contributions from members to be used for political purposes.
The Model Agreement at Articles XXII, XXIII, and XXIV contains language that is
appropriate for governing Employer and Union responsibilities for each of the fringe benefit or
other Funds to which contributions are made in the finishing industry. A description of these
provisions and an explanation for their necessity in the Agreement is contained in the following
Contributions to the IUPAT Industry Pension Fund, the IUPAT Finishing
Trades Institute, and the IUPAT Labor Management Cooperation Initiative
The recommended provision at Article XXII of the Model Agreement reflects language
that is legally appropriate to govern contributions to three (3) important national Funds that are
administered by Boards of Trustees appointed by the Finishing Contractors Association and the
IUPAT. These three Funds each have significant responsibilities to Employers and union mem-
bers throughout the country. Before explaining the reason for and necessity of the precise lan-
guage contained in Article XXII, an explanation of the general purpose and function of these
national Funds will be helpful.
The International Painters and Allied Trades Industry Pension Fund was created by
employers that conduct operations throughout the United States and Canada, along with the
International Union of Painters and Allied Trades, AFL-CIO, CLC, to provide a consolidated
pension program in which all IUPAT members and signatory employers can participate. Under
its Plan of Benefits, the Fund provides both “defined benefit” and “defined contribution” forms
of benefits for its participants and beneficiaries. The level and security of these benefits is among
the highest in the industry.
The Fund is governed by a Board of Trustees that comprises signatory employers and
employee representatives. The FCA appoints one-half (1/2) of these Trustees; the IUPAT
appoints one-half (1/2) of the members of the Board. Voting rights are equally allocated among
- 22 -
labor and management and, accordingly, any decision by the Board of Trustees concerning Fund
operations, investments, the level of benefits to be paid to participants, etc. can be determined
only through a labor-management consensus on each issue. The Trust Fund has operated suc-
cessfully for many decades under this structure.
Contributions to the IUPAT Industry Pension Fund may occur only pursuant to provisions
contained in a collective bargaining agreement or through a separate written instrument. The
Board of Trustees of the Pension Fund must also agree to accept the written agreement of the
parties as a condition for receiving contributions on behalf of employees and paying benefits.
The International Union of Painters and Allied Trades Finishing Trades Institute is a joint-
ly administered Fund established by the IUPAT and the Finishing Contractors Association that
provides training, education, financial, and other forms of assistance to District Council and
Local Union Training Funds. The Union and Management Trustees who comprise the Board of
Trustees recognize that only by maintaining the highest possible skill level among workers in
our industry can signatory contractors deliver quality services and operate their companies in a
productive, efficient, and profitable manner.
Funding for this important program, one that benefits every signatory employer, District
Council, and Local Union, occurs through contributions to the IUPAT-FTI. The program is con-
sidered so important that a provision in the International Union Constitution requires that
District Councils and Local Unions seek to negotiate a contribution provision in all collective
bargaining agreements that will support the continuing purpose of the FTI.
The IUPAT Labor Management Cooperation Initiative is a jointly administered program,
established by the FCA and the International Union that serves a variety of purposes. The
LMCI engages in joint efforts on behalf of signatory employers and workers throughout the fin-
ishing industry in which the benefits of using the skilled services that can be provided only by
quality union contractors are promoted to owners, customers, and users. Employers throughout
the United States and Canada that maintain relationships with the IUPAT, and who are part of
the cooperative relationship that the parties have established, derive substantial advantages
from these programs. In addition, the Labor Management Cooperation Initiative supports and
advances the mutual objectives of labor and management through educational programs, work-
er training and assistance, dispute resolution programs, and numerous other efforts that
are designed to enhance the efficiency and productivity of companies and employees in the
In order for the Boards of Trustees of each of these Funds to accept contributions that will
be forwarded to them by signatory employers, the Trustees have adopted certain rules relating
to the language that should appear in the collective bargaining agreement. This required lan-
guage is designed to assure that each party to the contract understands precisely the terms and
conditions that concern the amount of contribution that will be paid to the Fund, the manner in
which these contributions should be calculated and the method of payment by the signatory
employer. The recommended provision in Article XXII of the Model Agreement also requires
- 23 -
that the signatory employer understand that it will, by making contributions to each respective
Fund, become legally obligated to abide by all rules and regulations adopted by the Trustees that
are generally applicable to contributing employers to each Fund.
The first paragraph of the recommended provision is designed to establish the amount of
the contribution and answer questions concerning the identity(ies) of employees on behalf of
whom contributions should be made and the hours paid for which contributions should be sub-
mitted, and describes the method by which the contribution should be transmitted to the Fund
Office. The parties should note that the provision requires, fringe benefit contributions based
upon all hours paid but contains an exception relating to fringe benefit contribution amounts for
overtime hours. When overtime is worked, the provision will only require a contribution to the
fringe benefit funds(s) based upon the actual overtime hour(s) worked. Paragraph 2 [along with
paragraph 1(d)] requires that the Employer will be bound by the Agreement and Declaration of
Trust that governs each Trust Fund and that the Employer designates as its representative(s) on
the Board of Trustees of each respective Fund, the duly appointed Management Trustees. These
Trustees are appointed by the Finishing Contractors Association on behalf of all contributing
employers in the industry. Paragraph 3 obligates the Employer to submit its contributions to
each Fund at such time and in such manner as the Trustees may determine under their Rules and
Regulations and in accordance with provisions set forth in the respective Trust Document.
Paragraph 4 advises the Employer that it may become obligated to pay interest, liquidated dam-
ages, attorneys’ fees, costs, and other allowable penalties in the event it fails to make proper or
appropriate contributions to the respective Fund as required in the labor contract or the rules of
the Fund. Finally, paragraph 5 advises the signatory employer that each Trust Fund will comply
with the provisions set forth in the Internal Revenue Code and other applicable federal laws that
relate to the deductibility, for tax purposes, of the contribution.
- 24 -
Contributions through Voluntary Deductions to the IUPAT-PAT-PC Fund
Members in the International Union of Painters and Allied Trades have overwhelmingly
adopted and supported programs to promote various political, legislative and social causes,
issues and initiatives. Direct financial support for political candidates by labor organizations,
under law, can occur only through the mechanism of a separate identifiable fund that is estab-
lished by the Union for the purpose of providing assistance, through direct contributions and
other means, to candidates for public office.
The International Union has structured a political action committee that satisfies all guide-
lines contained in applicable federal and state statutes, rules, and regulations. For the signatory
employer and the District Council or Local Union that execute a collective bargaining agree-
ment, each party should be aware that the labor contract, in relation to such contributions,
should contain specific language that will enable the Employer to establish a payroll mechanism
for receiving and transmitting “voluntary” contributions from the employees to the committee.
From the perspective of the parties’ collective bargaining interests and concerns, the rules
relating to these provisions are straightforward. First, it is lawful for an Employer to deduct from
the net pay of an employee a contribution that the employee desires to make to a political action
fund or committee. The contribution by the employee must be in a specified amount, stated as
either a fixed dollar amount, an amount per hour, or a percentage of the employee’s wage. The
parties, as well as the employee, must understand that such amounts are not an “employer con-
tribution.” The Employer is not contributing out of its funds to the political action fund or com-
mittee; all such contributions come solely from the employee.
The rules require that the contributions be “voluntary.” This means that the employee can-
not be threatened with loss of employment, union discipline, or any other job action or adverse
consequence as a result of his or her agreement (or refusal to agree) to make the voluntary con-
tribution. Finally, the employee must, in order to make lawful such a voluntary deduction from
his or her net pay, provide a written authorization to the Employer. This is generally accom-
plished through the means of an “authorization form” that will be executed by the employee in
which these rights and restrictions are explained. The “authorization form,” when properly
drafted, will also inform the employee, and the parties, that the employee will have a right to
revoke the authorization, in writing. Upon a written notice of such revocation, the Employer will
not be permitted, any longer, to make a deduction from the employee’s pay for transmittal to
the political action fund. The form will also advise the employee that the voluntary contribution
to the political action fund or committee is not tax deductible.
- 25 -
Contributions to District Council (or Local Union) Welfare,
Pension, Apprenticeship (or other Fringe Benefit Funds)
District Councils, Local Unions, and signatory Employers in most geographic areas have
established jointly administered employee benefit Funds for a variety of lawful purposes. These
funds may provide welfare, health, hospitalization, disability, life insurance, pension, supplemen-
tal unemployment, severance, or other direct employee benefits, depending on their structure
and purpose. Some funds are intended to support apprentice and journeyperson training pro-
grams and industry promotion.
The establishment of any “Taft-Hartley” or “fringe benefit fund” should occur only under
the guidance of skilled labor and/or ERISA counsel, as several statutes and numerous govern-
mental rules and regulations may apply to the operation of any such entity. Once established,
however, each of these funds, regardless of its purpose, will generally receive its flow of income in
the form of contributions submitted by Employers pursuant to a collective bargaining agreement.
In almost all instances, the structural and operational documents (agreements and decla-
rations of trust and/or plan benefit documents, etc.) adopted by the parties to these fringe ben-
efit funds will require that a provision in the collective bargaining agreement specify the amount
of each contribution dollar, the manner in which contributions will be computed, and that the
signatory employer will agree to be bound by provisions set forth in the trust document(s), the
plan of benefits, and the rules and regulations of the Board of Trustees. In Section 15(b), model
provisions for contributions to national fringe benefit funds were described and are similar to
the recommended provisions in Article XXIV of the Model Agreement. Each provision con-
tains language that will accomplish these similar objectives. Indeed, a Board of Trustees for a
fringe benefit fund generally will not accept contributions to the fund on behalf of the employ-
er’s employees unless such obligations are set forth in a written instrument, usually a participa-
tion agreement or language in the collective bargaining agreement.
The model clause may be used by District Councils, Local Unions, and area signatory
employers when the parties desire that the Employer submit contributions to a jointly adminis-
tered trust fund so that its employees may be covered by the plan of benefits established by the
ARTICLES XXV and XXVI
Respecting Union and Employee Rights
In the finishing industry the Finishing Contractors Association and the companies that
comprise its membership, along with the International Union of Painters and Allied Trades,
have successfully established a cooperative union/employer relationship that assures enthusias-
tic support by the labor organization in achieving a highly productive, skilled, and efficient
workforce for all signatory contractors and a recognition that companies should operate effi-
- 26 -
ciently and profitably for the benefit of their ownership and the employees. An important part
of this philosophical and economic “union” of mutually beneficial objectives also involves a
commitment by each signatory employer to the philosophy that basic union and employee
rights must be respected.
Among the important institutional and individual rights of unions and employees that are
recognized as basic in the finishing industry is the right by a union to appoint job stewards at
each facility or project for the purpose of policing the enforcement of the collective bargaining
agreement. It has been determined, through decades of experience in our industry, that having
qualified job stewards available to employer representatives and employees serves as a useful
tool in avoiding potential disputes concerning the meaning or application of the collective bar-
gaining agreement and provides an indispensable line of communication for the Employer with
the labor organization when a dispute occurs and requires prompt resolution.
Other basic rights of the Union and employees that have been recognized by the major
employers in our industry involve the acknowledgement that the Union, as an institution, is con-
stantly seeking to organize nonunion workers and may, on occasion, be involved in disputes with
other companies that perform work in the same or related industries. Since District Councils,
Local Unions, and their memberships are affiliated with other labor organizations through
Building Trades Councils or similar entities, the District Council, Local Union, or its member-
ship may occasionally be required, due to their philosophies or commitments to other employ-
ee groups, to honor or respect protests or disputes involving those labor organizations. Having
a qualified steward serves as a useful tool in ensuring that provisions of the Agreement are
observed, disputes are avoided and lines of communication between the Employer and Union
remain open. Accordingly, under this provision the steward does not have the authority to initi-
ate a job action. Further, the steward is responsible for mentoring employees in proper profes-
sional conduct and on a productive approach to work.
The IUPAT has adopted rules that generally require members of the organization to
respect the rights of all workers. It is thus important for an employer in our industry to respect
this powerful commitment by all Union members to their fellow brothers and sisters who work
within the jurisdiction of the IUPAT, other building trades unions, or in other industries. This
philosophy, and the internal rules of the IUPAT, require that certain provisions be contained in
the collective bargaining agreement to clarify that the signatory employer will respect an
employee’s wishes when a labor dispute occurs and the employee will not suffer discipline or
adverse consequences when he or she exercises the “right” to refuse to perform work when the
performance of the job may diminish or injure the protest rights of other workers.
Protection of these Union and employee rights is an important subject that should be
addressed in any collective bargaining agreement. In addition to language in Article XXV that
will define the role of the Job Steward, the suggested provisions in Article XXVI include a
clause that will protect an employee’s right to honor a valid primary picket line established by
the District Council or Local Union, language that will permit employees to refuse to perform
“struck” work (work that would have been performed by a different group of employees, but
- 27 -
for the fact that the group is engaged in a lawful strike against their employer), and a provision
that will allow employees of the signatory employer to be free from discipline in the event they
choose to support the primary lawful activity of a labor organization or group of employees
against another company.
ASSURING THE AVAILABILITY OF A HIGHLY TRAINED
WORKFORCE AND PROVIDING JOB SECURITY TO SKILLED WORKERS.
DISCUSSION OF THE PROVISIONS IN ARTICLES XXVII AND XXVIII
The IUPAT and the FCA continually create and implement programs to achieve an effi-
cient, skilled workforce for all signatory contractors. Maintaining the availability and assuring the
growth of this workforce–one that sets our signatory contractors above all of their competitors–is
an effort in which all District Councils, Local Unions, and signatory employers must participate.
A skilled worker is a major asset for any contractor. Having sufficient numbers of trained
and motivated workers available for employment on projects when and where they are needed
is essential to any successful and profitable business enterprise. In a labor intensive market such
as the finishing industry, the productivity, efficiency, and talent that a worker brings to his or her
job can mean the difference between success and failure for the contractor.
Training and motivating apprentices and journeypersons is an important part of assuring
the success of signatory employers, but it is only one of several vital building blocks that need to
be in place. In addition, District Councils, Local Unions and signatory employers must also assure
that work opportunities for these skilled workers are, and will remain, available. It is not ade-
quate for the industry on a national, regional, or local basis to train and create the best jour-
neypersons if it, in turn, fails to do everything necessary to maintain and enhance the job securi-
ty of those workers. A skilled trades person who cannot find a job, or is underemployed in his or
her trade, may choose to leave the industry and seek a career elsewhere–a result that will waste
all the time, effort, and assets that have been devoted to that individual’s training and will, in both
the short and long term, seriously injure the interests of the Union and all signatory contractors.
In our industry, an object of the collective bargaining relationship should be to assure that a
quality workforce is presently available to a signatory employer, and also to assure that job oppor-
tunities remain available and are not eroded by the conduct of the parties to the agreement.
In this context, work preservation is a legitimate objective in a committed and cooperative
collective bargaining relationship. This Agreement gives the Employer the necessary tools to
compete for work in the marketplace and the Union has a legitimate expectation that in return,
the work will be assigned to the employees represented by the Union. From the Employer’s per-
spective, such a clause also offers a benefit in that it prevents other contractors from using a sub-
terfuge to circumvent the collective bargaining agreement, thereby becoming unfair competi-
tion at any time they choose.
- 28 -
Labor and Management should work in a cooperative partnership to achieve quality, pro-
ductivity, and efficiency. It is the obligation of both, as part of this relationship, to do everything
in their power to assure that work opportunities will not be eroded by their own conduct. Only
by securing the maximum availability of work opportunities for the skilled men and women so
essential to all contractors can the parties know that the pool of manpower will be maintained,
so that contractors will have no difficulty, in the future, properly staffing their projects as their
There are certain provisions that should appear in a finishing industry collective bargain-
ing agreement that are designed specifically to maintain the availability of job opportunities for
the skilled workforce that the union and signatory employers spend so much effort and money
to develop. These provisions include a standard “work preservation” clause that has been adopt-
ed by most major employers in our industry that are signatory to agreements with the IUPAT.
Its objective is to assure that a signatory employer will not, through the establishment of dou-
ble-breasted companies, alter egos, or other similar business transactions, erode the work oppor-
tunities for members of the bargaining unit. The provision guarantees that the company will not
shift its work to another business entity that it directly, indirectly, or beneficially controls to
avoid the impact of the labor agreement.
Another important provision to protect the job security of workers is the subcontracting
clause, a clause that will prohibit a signatory employer from subcontracting work that should be
performed by members of the bargaining unit to a business entity that does not have a contract
with the Union. Each of these provisions, while dealing with different aspects of the same sub-
ject matter, is designed to avoid problems and potential litigation between the parties by assur-
ing that the Employer, when it executes the Agreement with the Union, understands that all of
the work encompassed by the recognition and jurisdictional clauses in the labor agreement will
be performed by workers who are employed under that labor agreement.
The specific types of work preservation clauses that should appear in the collective bar-
gaining agreement are discussed below:
Preservation of Work Clause
The importance of this particular provision in a collective bargaining agreement is under-
scored by the fact that all District Councils and Local Unions affiliated with the IUPAT are
required, by provisions in the International Constitution, to seek the inclusion of this clause in
their trades labor contracts. Indeed, the majority of major employers in the industry that have
relationships with the IUPAT and its affiliated District Councils and Local Unions have recog-
nized the merit of this provision and the benefits that it can deliver, not only for the Union and
its membership, but for the signatory employer as well.
- 29 -
The “preservation of work” clause requires that any contractor that is signatory to the
IUPAT agreement assure that all work it controls will be performed by members of the bargain-
ing unit and that the same or similar work performed by any other company in which the
Employer, through its owners, officers, directors, partners, family members, or stockholders,
directly or indirectly, exercises management control or majority ownership will similarly be obli-
gated under the terms of the labor agreement. The provision is designed to assure that job
opportunities for bargaining unit members are not eliminated or diminished through the device
of having other companies created or managed (under the direct or indirect control of the
employer or its principals) as a subterfuge for evading the provisions in the labor agreement.
In the building and construction industry, which includes trades agreements in the finish-
ing industry, a Union and an Employer are permitted to execute an agreement in which job site
work on a construction or maintenance project must be performed by individuals who are work-
ing under the union’s collective bargaining agreement. “Job site” work has been defined by the
National Labor Relations Board as work performed at the site of the construction. A provision
of this nature is intended to preserve the work of members of the bargaining unit.
Under the standard and recommended provision that commonly appears in most trade
union agreements, the Employer will be obligated, in relation to all job site work to perform
such work using only its own employees or through a subcontractor that is also a signatory to
an IUPAT agreement. Stated differently, this provision requires the Employer to perform the
work by itself with its own workforce or, in the alternative, should it desire to subcontract, the
work must be performed by trades personnel who are part of the same general workforce in the
area and who are employed under an IUPAT agreement. Effectively, when subcontracting is
desired by the Employer, the clause limits the other businesses to which the work can be sub-
contracted to those that are already organized by, and in signatory relationship with, the IUPAT.
A provision of this nature is among the most important that should appear in a collective
bargaining agreement. In addition to the basic “subcontracting” language in Article XXVIII, the
recommended provision in Section 3 requires that an Employer, when subcontracting job site
work even to an IUPAT signatory subcontractor, retain some financial responsibility for that
assignment in the event it has received notice from the Union that the particular contractor, to
which it seeks to subcontract the work, is delinquent in the payment of financial obligations to
the Union or to any fringe benefit fund encompassed by the collective bargaining agreement. If
the Employer proceeds or continues with subcontracting under these circumstances, the Employ-
er may be held liable for the delinquencies of the subcontractor at the job site. This provision is
designed to avoid circumstances in which a “subcontractor” may seek to underbid other signato-
ry employers by a scheme in which it fails to pay fringe benefit contributions. This type of con-
duct clearly injures employees whose benefits depend upon these contributions and can destroy
the level playing field that signatory employers rely upon when bidding for work at the job site.
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The safety of employees in the workplace is an important responsibility of each signatory
employer. Numerous federal and state laws, including the Occupational Safety and Health Act
of 1970, as well as federal and state governmental regulations, impose liabilities on employers
that fail to maintain a safe workplace or who otherwise engage in conduct that exposes employ-
ees to various health risks. The role of the Union, in relation to employee health and safety on
the job, is that of a party who is interested in assuring to the extent possible that employees are
not exposed to such risks.
Provisions in collective bargaining agreements that deal with workplace health and safety
issues should state guidelines that inform the parties about the responsibility of the Employer
and the rights of the Union and the employees. “Safety” language is not intended to replace or
substitute for the rights of workers under federal or state laws or in any manner expose the
Union or the employee to liabilities that they otherwise do not have under law.
The recommended provision at Article XXIX of the Model Agreement reminds the
Employer that it is subject to rules and regulations contained in the Occupational Safety and
Health Act of 1970 and other applicable federal and state laws relating to work site safety and
health matters. The language clarifies that the Union is not liable to the Employer or to any
employees, and cannot be rendered liable in relation to such issues merely because it takes an
interest in employee safety or acts to represent the rights of bargaining unit employees. A
union’s power under the collective bargaining agreement and within the context of a collective
bargaining relationship is somewhat limited when potential health or safety risks occur, since
the Union does not control the job site or workplace. It will encourage Employers to take steps
to avoid having employees suffer harm from known, dangerous conditions.
The language also requires the Employer to provide safe tools, materials, and equipment
for employees, and all necessary personal protective equipment and instructions on the proper
use of such equipment in the performance of the various jobs and work assignments that will be
required of employees. The Employer, in accordance with law, will not be permitted to require
employees to sign any statement dealing with health or safety absent the consent of the Union
(this is required to assure that an employer does not attempt to evade its own responsibility by
having an employee execute a “release” or waiver as a condition of employment).
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Journeyperson Upgrade Training
The performance requirements in our trades have changed over the years. No longer can
a journeyperson assume that once he or she has completed an apprenticeship program, no fur-
ther training is necessary. Health and safety regulations and laws require extensive training and
periodic refresher courses at a minimum. Technological changes, new applications and new tools
and techniques also require continuing education in order for the Employer to remain compet-
itive and the Union member to remain employable. In some instances, cross-training in the skills
required for various trades in the finishing industry is necessary to meet manpower and skill
Journeyperson upgrade training is a subject that must be addressed by employers and
unions alike. IUPAT members no longer can view their particular trade merely as a job, but
rather each member should view his or her responsibility as a trades person as a career that
requires constant honing of skills.
The parties to a number of collective bargaining agreements have adopted language that
requires journeyperson upgrade training as a condition of employment or as a precondition to
receiving compensation increases. In the Model Agreement, at Article XXX, the format for a
mandatory provision that will require all journeypersons to engage in periodic refresher cours-
es or upgrade training is provided. The recommended provision suggests that the local parties
to the collective bargaining agreement establish their own specific rules and regulations that will
apply to the program. The rules adopted by the parties should address issues such as the fre-
quency of the journeyperson upgrade training (preferably, every year), the courses that a jour-
neyperson will be required to take, the manner in which a journeyperson will be certified as hav-
ing completed an upgrade course and any incentives that the parties may wish to adopt to
encourage journeypersons to attend the course(s).
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Miscellaneous Terms and Conditions that are Recommended
for Inclusion in the Collective Bargaining Agreement
Discrimination (Article XXXI – Section 1)
A variety of federal and state laws make it unlawful for an Employer to discriminate
against an employee. The forms of discrimination that are generally considered to be unlawful
include discrimination based upon race, age, religion, national origin, sex, union membership,
and, in some jurisdictions, marital status and sexual orientation. Provisions in a collective bar-
gaining agreement dealing with discrimination usually alert the Employer, the Union and the
employees to those forms of discrimination that will not be tolerated by the parties and are
designed to assure all employees, and applicants for employment, that both the Employer and
the Union have taken steps to prohibit such unlawful conduct.
The purpose of having a “no discrimination” provision in the agreement is not to replace
or remove the rights that employees may have under federal or state law to prosecute a claim
against the Employer (or even the Union) if they believe they have suffered discrimination.
Instead, the purpose of the clause is to provide the parties, the Employer, the Union, and the
employee with a mechanism for determining and, hopefully, resolving any claim or complaint
that may occur, without the necessity of complex litigation in federal or state courts. By placing
the provision in the collective bargaining agreement, if an employee believes that he or she is a
victim of discriminatory conduct, the claim may be heard by using the grievance procedure,
which is a less costly and more efficient system, in most instances, for resolving such claims. The
parties should be aware, however, that an employee may also have a right, outside the grievance
process, to seek redress through government agencies and/or litigation. In many cases, however,
submission of the claim to the grievance process will allow the parties to seek and achieve a
complete solution or settlement and permit them to avoid the burdensome process of litigation.
Entry Level Journeypersons (Article XXXI – Section 2)
In times of work booms, both the Union and signatory employers have occasionally been
caught unprepared. During such times, due to manpower shortages, needed employees have
been recruited from nonunion employers and other sources. All of these recruits cannot be
placed in the Apprenticeship Program either because they do not meet certain apprenticeship
entry criteria or they are unwilling to join as apprentices. Sometimes, a recruit’s skills may be
above apprenticeship standards in some aspects of the trade, but not others. When these circum-
stances occur, it may negatively impact the Union as it will have some members who are only
marginally employable. Employers will similarly suffer a negative impact as a company may
have employees seeking journeyperson wages who do not have the skills of a fully trained jour-
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Some District Councils and Local Unions have implemented clauses in collective bargain-
ing agreements that address this problem. These clauses have established a classification known
as an “entry level journeyperson.” Such employees may be hired at either a percentage of the
established journeyperson wage and fringe benefit rate or at a set wage and fringe benefit rate
agreed upon by the parties. This wage rate is considered temporary until such time the entry
level journeyman has met the qualifications and achieved full journeyman status.
During the first thirty (30) days of employment, the entry level journeyperson will be eval-
uated by the District Council (or Local Union) Examining Board and/or District Council or
Local Union JATC. Following this examination, the individual will be placed at either the appro-
priate level of the Apprenticeship Program or remain in the entry level journeyperson classifi-
cation and be required to take journeyperson upgrade classes. The entry level journeyperson
classification will remain until the employee/member has worked for four thousand (4,000)
hours and completed required upgrade training and other applicable courses. At the end of this
time, upon satisfactory completion of all course work, a re-evaluation will occur and the individ-
ual can be upgraded to full journeyperson status. The recommended language will also permit
the District Council (Local Union) Examining Board or District Council or Local JATC to ele-
vate an individual to full journeyperson status, notwithstanding completion of the 4,000 hour
requirement or other factors, if and when it has objectively determined that the individual has
acquired the skills of a full journeyperson through completion of required courses and/or expe-
rience on the work site.
This provision can be written in different ways, depending on market conditions in the
area and the capabilities of the District Council (Local Union) Examining Board or District
Council or Local JATC to test, evaluate, and train these new members to enhance their skills.
The clause should also allow the Employer the ability to terminate any person who does
not comply with all requirements for attaining full journeyperson status. Similarly, the District
Council Examining Board or the District Council JATF should be permitted to revoke the des-
ignation for employees who do not comply. A sample provision that may be considered by the
parties is set forth at Article XXXI, Section 2, of the Model Agreement.
Union Right to Verify Compliance by Signatory Contractor
with Provisions and Obligations in this Agreement (Article XXXI – Section 3)
The provisions in Article XXXI, Section 3, provide to the parties, the Union, the
Association, and all signatory employers in an area, a necessary tool to permit the Union and
signatory employers, when probable cause exists, to investigate alleged serious violations of the
collective bargaining agreement. In a separate recommended provision in the Model
Agreement, Article XI (Dispute Resolution), the Joint Trade Board is given the power and
responsibility to investigate alleged violations of the collective bargaining agreement. The lan-
guage in Article XXXI, Section 3, is designed to enhance and facilitate this power so that, upon
application by the Union claiming that a contractor has violated provisions in the Agreement
and a finding of probable cause by the Joint Trade Board, the Union will be authorized to
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employ an auditor to inspect and audit a signatory employer’s books and records in furtherance
of the investigation into the alleged violation(s). A provision of this nature will assist the Union
in conducting investigations into potential serious violations of the labor agreement, will protect
signatory employers from unreasonable requests or demands by the Union for books and
records by requiring a showing of probable cause before the Joint Trade Board, and will
enhance the ability of all parties subject to the labor agreement to keep a level playing field, by
helping to assure compliance with the agreement among all signatory contractors.
STARS Program (Article XXXI – Section 4)
The STARS Program, established by the International Union and the FCA, is designed to
promote and support the training, skills, and excellence that the Union and employers, on a
national basis, are striving to achieve throughout the industry. This publication is not designed
to provide detailed information concerning the STARS Program. Substantial documentation
and information is available, upon request, from the LMCI. In an effort to promote participa-
tion in the STARS Program and the national commitment to excellence that it represents, the
Model Agreement provides language that will require the parties to form a joint committee to
study and implement the STARS Program. This commitment will serve the interests of all sig-
natory employers and Union members as safety incentive programs have been shown to
improve jobsite safety performance.
Bonding (Article XXXI – Section 5)
The purpose of a bonding requirement in a collective bargaining agreement is to assure
the payments by the Employer of wages, fringe benefit contributions, and other amounts due
and owing under a collective bargaining agreement. Sometimes Employers promise to pay
appropriate wages and fringe benefit contributions and amounts required by the labor agree-
ment by executing a contract, but fail to pay some or all of these amounts. This is harmful to
legitimate employers, as well as to employees.
A strong bonding provision should be contained in every collective bargaining agreement.
The language should require that the signatory employer, through a reputable surety company,
will comply with its financial responsibility under the labor contract, at least up to a reasonable
amount. While the “amount” of the surety bond should not be so high as to be unreasonable or
cripple the ability of an employer to operate, the amount, nevertheless, should be sufficiently sub-
stantial to assure the payment of at least several months of wages, fringe benefit contributions, or
other amounts required for payment under the agreement. The Agreement may also permit
other alternatives that accomplish the same result. For example, it may permit a cash deposit, or
the providing of an irrevocable letter of credit as an alternative to furnishing a bond. Such flexi-
bility is important, as in some cases it may be difficult for every contractor to furnish a bond.
The Model Agreement does not provide specific language for adoption by the parties.
Each area and each jurisdiction has numerous samples of potential model language available to
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it and the LMCI has determined that the negotiation of specific language on this subject should
be left to the discretion of the parties during local negotiations.
Workers’ Compensation Insurance and ADR Programs (Article XXXI – Section 6)
Traditional Workers’ Compensation Insurance
Workers’ Compensation insurance (or an equivalent and approved self-insured program)
is a requirement for virtually all employers in every state and region throughout the country.
Unfortunately, experience has shown that some employers may ignore their responsibility to
comply with state or local laws governing this subject, to the detriment of their employees.
The recommended provision at Article XXXI, Section 6, requires that the Union receive
an appropriate certification from the signatory employer that Workers’ Compensation insur-
ance is available for the employees. The insertion of such language in the collective bargaining
agreement will also permit the Union, in addition to any other lawful remedies that may be
available to it, to utilize the grievance and dispute resolution procedure in the agreement and
potentially seek court enforcement of a Joint Trade Board Award, to require prompt employer
compliance with the Workers’ Compensation insurance provision. In the absence of language in
the agreement permitting this remedy, the Union and its members could be at the mercy of cum-
bersome state procedures that can take months (or even years) to assure compliance by an
employer that is not providing the appropriate insurance coverage to its employees.
Alternative Dispute Resolution Workers’ Compensation Programs
The recommended language also provides that an FCA affiliated Local Chapter that is
signatory to the Union area agreement may establish an Alternative Dispute Resolution
Workers Compensation (“ADR Program”) where permitted by state law.
Alternative Dispute Resolution Workers’ Compensation Programs have existed since the
early to mid-1990’s. Recently, there has been growing interest among the building trades in these
programs because statistical information is now available to confirm that these programs, if
properly structured and administrated, can be beneficial to both employees and employers.
ADR Programs are established by Union and Management through collective bargaining.
They provide a different procedural method for resolving workers’ compensation claims.
Rather than using a state’s statutory scheme for resolving contested workers’ compensation
claims, an ADR Program utilizes a facilitator who becomes involved very early in a contested
workers’ compensation claim. The facilitator acts as a mediator between the employer (the
insurance company usually) and the employee. Sometimes the facilitator is referred to as an
“ombudsman.” Dispute resolution is not the only element of an ADR Program, other important
parts of an ADR Program include providing good medical networks, return to work programs
and rehabilitation services. The statutory workers’ compensation benefits remain the same in an
- 36 -
Each state has its own workers’ compensation laws and statutory procedures for resolving
claims. Although similar, they will vary from state to state and there must be enabling legisla-
tion in the state in order for an ADR Program to operate. Currently ADR Programs are avail-
able in California, Florida, Hawaii, Kentucky, Maine, Maryland, Massachusetts, Minnesota, New
York, and Pennsylvania. In addition to these states, the existing laws of other states may allow
an ADR Program to be implemented with approval of the Insurance Commissioner of the state.
These states are: Connecticut, Delaware, Georgia, Indiana, Missouri, Nebraska Oklahoma,
Rhode Island, South Dakota, Utah, and West Virginia. Also, existing laws may partially allow
ADR Programs in Colorado, Mississippi and Wisconsin.
There are currently a number of successful ADR Programs in operation. California and
Minnesota are just two examples. In Minnesota, the Program is open statewide to all building
trades employers. As of July 1, 2005, a total of 112 employers were participating in the Minnesota
Program. This Program currently covers over 10,900 employees including some in the Finishing
Industry. It should be noted that the Programs may vary significantly from state to state.
The use of the Alternative Dispute Resolution process encourages a much faster return to
work and faster claim settlement, thereby reducing the amount of time for which indemnity
benefits are paid while waiting for a hearing. This can be extremely beneficial to the injured
worker who may be losing as much as $1,000 or more a week (over and above workers’ com-
pensation benefit payments) in lost wages, fringe benefits, pension accruals, health and welfare
eligibility, social security payments, etc. In Minnesota, the statutory system takes an average of
18 months in order to get a hearing. The Alternative Dispute Resolution system used in
Minnesota, however, results in a majority of the disputes being resolved at facilitation, which can
be completed within 30 days of the injury.
Ullico Insurance Company has done a number of studies nationwide. One study per-
formed by Cornell University indicated that in New York, the average cost of a claim using the
statutory procedures was $13,441 compared with the Alternative Dispute Resolution proce-
dures of $7,911. The same study showed that there was an approximate 26% reduction in the
average length of a claim using the Alternative Dispute Resolution mechanism, as opposed to
the statutory mechanism. Since the ADR Program is designed to reduce the amount of time that
the injured employee is off work by expediting the claim process, the overall claim costs are gen-
erally lower, and therefore, the employer’s premium should be lower. Some insurance carriers
will automatically offer a 3% to 5% discount on the insurance premium if the employer is
enrolled in an ADR Program.
Oftentimes, the ADR Programs will incorporate the use of exclusive provider organiza-
tions to provide occupational medical doctors and specialists. The goal of these providers is to
rehabilitate and get the injured workers back to work as soon as possible.
These Programs do not prevent an employee from hiring an attorney; however, experience
has shown that employees are less likely to hire an attorney if they participate in an ADR
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The ADR Program works whether the employer is fully insured, self-insured, part of a self-
insured group, part of a group buying program, or has a retrospective policy. There are a variety
of ways to implement ADR Programs through the collective bargaining process:
1. Fully insured program using a licensed insurance carrier or carriers;
2. Self-insured program using group or single self-insurance;
3. Self-insured program using a joint employer association established under state law;
4. Fully insured or self-insured program using a Taft Hartley Trust Fund.
The model language in the collective bargaining agreement permits an FCA-affiliated
local association to establish an ADR Program for FCA members. This could be a program
self-contained within the Finishing Industry, or could be part of a larger multi-craft program.
It is important to keep in mind that these programs are only available to FCA-affiliated union
contractors and will assist union contractors in being more competitive with the nonunion
There are different ways to form and structure an ADR Program. One way is for the FCA
affiliated organization to form its own ADR Program or join an established multi-trade ADR
Program. The model language permits this. Another way, one in which the District Council or
Local Union will take a more proactive role in the administration of the ADR Program,
involves the formation of a jointly administered trust. It is important to note that the recommend-
ed language in the Model Agreement does not require the District Council or Local Union to par-
ticipate in the formation of a jointly administered trust since the determination of whether such a
trust is feasible or preferable is a matter that should be discussed, analyzed, and decided by the
parties at a local level. The District Council or Local Union, among other things, will need to
study and consider the proposed structure of the trust, the financial obligations that Employers
will have to the trust, the actuarial needs of the trust, the costs of its operation, the nature and
style of the dispute resolution mechanisms, and other important issues before agreeing to par-
ticipate in such an endeavor. These comments are not intended to dissuade any District Council
or Local Union from considering participation in such a trust, but only to caution the parties
that the issue(s) should be thoroughly researched and understood before an agreement to estab-
lish a trust is made.
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Where the parties are in agreement that an ADR jointly administered trust should be cre-
ated and administered in their area, a model clause for inclusion in the collective bargaining
agreement is provided below:
“It is agreed to establish a jointly managed alternate workers compensation program,
which allows for optional participation by signatory contractors and the [NAME OF DIS-
TRICT COUNCIL OR LOCAL UNION].
It is the purpose of this alternate workers’ compensation program to provide a system to
ensure the timely and fair payment of workers compensation benefits required by (State) law
or the law of any other jurisdiction to participants who have suffered work-related illnesses or
injuries while performing work under this Collective Bargaining Agreement.
The operation of the alternate workers compensation program will be determined by the
Trustees in accordance with the Agreement and Declaration of Trust of the Union Construction
Crafts Workers’ Compensation Fund (hereinafter, “the Fund”). This Fund will be administered
by an equal number of Employer Trustees and Union Trustees and will be funded from contri-
butions from participating employers on behalf of employees covered by this Collective
The parties hereto agree to be bound by the Agreement and Declaration of Trust estab-
lishing the Fund, together with any amendments thereto and rules and regulations established
by the Trustees. The parties hereby designate as their representatives on the Board of Trustees
such Trustees as are named pursuant to the Trust Agreement, together with any successors who
may be appointed pursuant to the Trust Agreement.
The parties hereby agree to be bound by the delinquency collection procedures estab-
lished by the Trustees of the Fund. The amount of contributions to this Fund shall be established
by the Trustees and may be changed from time to time.”
Additional information on ADR Workers’ Compensation Programs can be obtained from
the Finishing Contractors Association headquarters office.
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Flexibility to Modify Agreement and to Expand or Recover Work
At times, the provisions in a collective bargaining agreement may require modification in
order to permit the Union and signatory employers to be competitive on a specific project.
Some Unions deal with these circumstances through established “market recovery” pro-
grams or special agreements, modified wage rates, etc. Such programs or separate agreements
may not always be necessary. Provisions in a collective bargaining agreement may provide that
the Business Manager shall be granted the power to modify an Agreement subject to certain
restrictions and limitations.
The recommended provisions in Article XXXII of the Model Agreement will permit the
Business Manager the necessary flexibility to insure that his/her District Council or Local Union
is competitive and obtains jobs for union members. The language can be modified, as appropri-
ate, to satisfy local concerns, but the subject should be dealt with in the labor contract.
Wage rates in our collective bargaining agreements are typically negotiated with an eye
toward the part of the market in which the union finishing industry is dominant, or at least
remains competitive. It is recommended that rates be negotiated and applied to those segments
of the market. However, the parties to a labor contract should not stop there. The Union and the
signatory employer cannot ignore the percentage of the market where Union standards do not
apply, and where the work is not being performed by IUPAT contractors and members.
These markets should be specifically identified and defined. Then, realistic and market-
responsive wage and fringe benefits should be negotiated, and set forth in the collective bargain-
ing agreement or in a separate Memorandum that addresses the marketplace or issue. This
should be done with the commitment of the Union to recruit the workforce able to perform this
work, and the commitment of the employers to aggressively bid this work.
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IUPAT and Finishing Contractors Association
Not a Party to the Collective Bargaining Agreement
The International Union of Painters and Allied Trades, AFL-CIO, CLC is structured so
that each affiliated District Council or Local Union that is chartered by the International Union
operates as a separate legal entity. This means that a District Council or Local Union, though
affiliated with the IUPAT, conducts its business and enters into contractual relationships sepa-
rately from the International Union as an autonomous entity.
A District Council or Local Union is not an agent or representative of the International
Union. Thus, no representative of a District Council or Local Union can take any action that will
be legally binding on the International Union, or subject the officers, employees, agents, or other
persons acting on behalf of the International to liability. Although the International may, on
occasion, involve itself in the affairs of a District Council or Local Union in order to assure com-
pliance with provisions in the Constitution, this involvement or assistance does not mean that
the International Union, in turn, becomes a party to a collective bargaining agreement or, in any
manner, accepts or incurs liability or responsibility for the acts, actions, or failure to act of a
District Council or Local Union, its leaders, representatives, or agents.
In a similar vein, neither the IUPAT, the Finishing Contractors Association, nor the Labor
Management Cooperation Initiative (LMCI), by reason of their endorsement and recommen-
dation of various “model provisions” in this publication and in the related “Model Agreement,”
or their officers, agents, or others acting in their behalf, can be held liable or be considered par-
ties to a labor contract merely because they have recommended for adoption in a collective bar-
gaining agreement certain provisions that have been provided to the District Council, Local
Union, Local Association, or the signatory Employer. The ultimate decision to adopt or reject
the recommended provisions in the Model Agreement lies with the local parties. By recom-
mending the inclusion of these provisions, neither the FCA, the LMCI, the IUPAT, nor any of
their officers, employees, or persons acting in their behalf shall be construed, or become, a party
to the Agreement or otherwise liable under its provisions.
The inclusion of the recommended language in Article XXXIII is required to emphasize
and underscore the respective responsibilities of the parties. To the extent that a labor organi-
zation or a signatory employer executes or is bound by an Agreement, only the entity that exe-
cutes the Agreement, the signatory employer, the District Council or Local Union, can be held
liable for its responsibilities and obligations under the Agreement.
- 41 -
The job security of workers is also protected by a provision in the labor contract that will
require that, in the event of a sale, transfer of assets, lease, assignment, receivership, or similar
type of transaction or process involving the employer’s business, the provisions in the collective
bargaining agreement will continue to apply so that such forms of business transactions or
devices may not be used as a means to evade the Employer’s responsibilities.
The standard provision dealing with “successors” also requires an affirmative commitment
that, if the Employer sells its business to another, the transferee (purchaser, lessee, etc.) will be
required, as part of the agreement, to agree to be bound by provisions in the collective bargain-
These provisions are designed to insure that the job security of members of the bargain-
ing unit is not negatively impacted by a sale, transfer, lease, or other arrangement by the
When the parties enter into a collective bargaining agreement, the Agreement is designed
to establish wages, hours, and other terms and conditions of employment for all employees in
the bargaining unit. The Employer should not, absent specific Union consent, enter into any side
agreements with any employee or otherwise seek to modify provisions in the Agreement
through separate “side deals.” To do so could embroil the parties in litigation or other disputes,
including potential proceedings before the National Labor Relations Board.
The Supremacy Clause prevents an Employer or an employee from entering into any
agreement that undermines this agreement and creates unfair bidding competition for fair
employers and losses of wages and or fringe benefits for union members.
In order to clarify the purpose of the collective bargaining agreement for the benefit of all
parties, including employees who may seek special “side deals” or arrangements from the
Employer, the labor agreement should contain a provision known as a “supremacy clause” in
which all parties, including employees, are informed that no separate agreements absent the
consent of the Employer and the Union will be permitted.
- 42 -
General Savings Clause
Circumstances occasionally develop in which a contract provision that was properly
agreed upon and implemented by the parties is determined to be invalid. This can occur through
no fault of the parties, but as a result of congressional or legislative action, a change in govern-
ment regulations, an NLRB decision, or a court proceeding.
Although these situations are rare, it is important that language appear in the labor agree-
ment that will advise the parties of their rights in these circumstances. In the absence of such
language, the parties may be left to guess at the rules governing a particular term or condition
of employment while the Agreement remains in effect, a situation that can lead to serious dis-
putes that are otherwise avoidable. It is also possible, in the absence of a General Savings
Clause, that the entire Agreement can be terminated by a court decision that affects only a sin-
gle provision in the Agreement.
The recommended provision explains to each party precisely what will occur in the event
that language in the collective bargaining agreement is determined by a competent authority to
be invalid or unenforceable. The clause states that the affected language will not be enforced,
but the parties will meet promptly to discuss the issue and negotiate a new provision. In almost
all instances, after such discussions, experience dictates that the parties will mutually agree on a
solution to the problem that often involves merely a modest change in the language of provi-
sion so that it will comply with the new legal standard. In circumstances where the parties can-
not agree, the clause provides that either party will, in such event, be entitled to take “all appro-
priate legal or economic recourse,” which means that either the parties may resort to their dis-
pute resolution mechanism contained in the Agreement (if applicable), the courts, or the Union
may engage in economic action against the employer as if the contract no longer exists.
Each collective bargaining agreement must contain language that informs the parties
when the Agreement will be effective and when the agreement will end.
The recommended provision contained in Article XXXVII resolves issues that typically
confront the parties in relation to defining the “term” of the collective bargaining agreement
and explains what will happen if neither party takes appropriate action to end the Agreement
as of its termination date.
The provision establishes the beginning date of the Agreement (effective date) and also
identifies the ending date of the Agreement (expiration date), the date at which, assuming one
party or the other acts to terminate the Agreement, the Agreement will no longer be effective.
In order to terminate the Agreement as of its expiration date, one party or the other must, in
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writing, serve upon the other party a notice that it intends to cancel or terminate the Agreement
as of the expiration date. This notice must be given, under the provision, not less than sixty (60)
and not more than ninety (90) days prior to the expiration date. If neither party forwards a notice
of a desire to cancel or terminate the Agreement within the stated time frame, the Agreement will
automatically be extended for an additional one (1) year period. It should be noted, however, that
if both parties later desire, by agreement, to terminate a contract that has been extended under
this provision, the parties may agree to do so at any time.
The proposed clause also contains language that will permit each party, pursuant to cus-
tom in some areas, to advise the other side that it wishes to modify or amend provisions in the
existing agreement, but not necessarily to “terminate” the Agreement. This language is recom-
mended because experience teaches that many parties do not like to use the terminology “can-
cel” and/or “terminate” when they merely wish to renegotiate various provisions in the Agree-
ment. The second clause of the recommended provision, therefore, permits the parties to use
such terminology, but also clarifies that the use of such terminology is, in a legal sense, identical
to the use of the “cancel” or “terminate” language referenced in the first paragraph. In other
words, a letter from the Employer to the Union or from the Union to the Employer within the
60–90 day time frame, stating that the party wishes to negotiate amendments or modifications
to the existing Agreement, will effectively provide the Employer and the Union all rights they
would otherwise possess upon the termination date of the Agreement as if the “cancel” or “ter-
minate” language had actually been used.
Finally, the Union and the Employer should be aware that they are also required, when
giving notices to “terminate” an Agreement, to file a notice of such termination with the Federal
Mediation and Conciliation Service and its equivalent agency in each State. Each party should
consult with counsel concerning the rules that apply to such filings as the legal rights of the
Union and Employer can be affected by a failure to properly notify these agencies.
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PAINTERS & ALLIED TRADES
L MCI LMCI CBA GUIDEBOOK NOTES