What Is a Union Bond?
Union bonds, sometimes referred to as “wage and welfare bonds,” are required in cases when a company wants to hire an employee represented by a union. The bond guarantees that the employer will cover all due payments on wages and welfare for the union employee.
Union bonds are financial guarantee surety bonds. They work as a contract between three parties. Your company is the principal asked to get bonded. The obligee is the entity requiring the bond, usually the union of the employee. Finally, the surety is the bond underwriter.
In case the business does not meet its obligations towards union employees, a claim can be made on the wage and welfare bond. If proven, the company needs to compensate the claimants in full.
Because of the direct financial reimbursement involved, union bonds are high-risk. That’s why obtaining them requires posting collateral in most cases.
Questions about Wage Welfare Bonds
Who needs to obtain a union bond?
Companies that want to employ people who are members of a union are required to obtain wage and welfare bonds.
Often, businesses settle collective agreements with unions about the conditions under which they can hire union members. Usually union bonds are decided on then. Every union sets the conditions and bonding amount individually.
Are there different types of union bonds?
While there are different names for union bonds, by and large they serve the same purpose: to protect union workers from non-payment of wages and benefits on the side of their employers.
There are some variations between union bonds across the U.S. Each wage and welfare bond is slightly different, as each union decides on the specific conditions to be set in it.
Some of the ways in which union bonds are referred to include wage fund bonds, wage and fringe benefits bonds, welfare fund bonds and fringe benefits bonds. In case the name mentions only welfare or fringe benefits, this means that the bond guarantees the due payment only of these benefits and not of wages. |
How much does a union bond cost?
The price of your union bond, first and foremost, depends on the surety bond amount required by the union that represents your employees. It is often settled during negotiations between unions and companies, and applies to all workers in that union.
Because union bonds are high-risk bonds, your bond price is not calculated the same way as other surety bonds’ cost. There have been numerous cases of claims on wage and welfare bonds, which makes posting a collateral, often 100%, a usual requirement when getting a union bond.
Besides the collateral, you need to cover a bond premium, which is a fraction of the surety bond amount.
To set your bond premium, your surety will still consider your personal credit score and overall finances. If they are both strong, you are likely to get a lower bond premium in the range of 1%-4% of the bond amount.
Regarding the collateral, often it is difficult to avoid posting it. However, if you have long-term relations with your surety, a good history working with them, and strong finances, you might be able to pay only the bond premium and skip the collateral.
Can I get a union bond with bad credit?
Lance Surety Bonds works with many of the most prestigious A-rated, T-listed surety bond companies. This gives us the opportunity to offer you bad-credit bonding, even for the high risk union bonds.
The usual percentages for applicants with damaged credit or poor financials are between 5%-15% of the bond amount, which is needed to compensate for the risk involved. In most cases, getting a union bond with bad credit also means posting collateral.
Still, the bad credit program presents an option for companies that want to work with union employees to get the bond required for this. You can be sure that with us you’re getting top bonding rates and the best conditions on the market.
How do I get my union bond?
Getting your union bonds with Lance Surety Bonds is an easy and quick process. You can apply online to get your free bond quote in no time. After completing a full bond application, we will deliver your exact bond price.
The bonding process can be confusing, so if you have any questions, we are here to help. You can call us at (877) 514-5146 and we will be happy to guide you through.
If you’d like to get more detailed information about how bonding works, our How to Get Bonded page is an excellent resource.
Find Your Surety Bond
|California||District Council of Iron Workers||CA District Council Of Iron Workers||Apply Now|
|District of Columbia||Voice-Data-Video National Agreement Bond||IBEW AFL-CIO||Apply Now|
|District of Columbia||Employer's Wage, Expense, Welfare, Pension, Annuit||International Union of Bricklayers and Allied Craf||Apply Now|
|Federal Government||IBEW Bond||IBEW LOCAL 351||Apply Now|
|Georgia||Southeastern Carpenters Millwrights Fringe Benefit||Carpenters Local 256||Apply Now|
|Idaho||Farm Labor Contractor Bond||Idaho Department Of Labor||Apply Now|
|Illinois||Council of Carpenters Wage and Fringe Benefit||Chicago and Northeast Illinois District Council of||Apply Now|
|Illinois||Contractors' Wage, Welfare, ETC.||Sheet Metal Workers Local Union 73||Apply Now|
|Illinois||Painters District Council No. 30||Painters District Council # 30||Apply Now|
|Illinois||Employer's Wage||Local Number 134, International Brotherhood of Ele||Apply Now|
|Illinois||IUOE Local 520 Bond||International Union of Operating Eng Local 520||Apply Now|
|Illinois||IBEW #9 Employer's Wage Bond||Local Union 9 IBEW||Apply Now|
|Illinois||Employer's Fringe Benefit Bond||Local Number 134 International Brotherhood of Elec||Apply Now|
|Illinois||Contractor's Wage and Welfare Bond for Pipe Fittin||Pipe Fitters' Association Local Union No. 597||Apply Now|
|Illinois||Chicago Employer Wages and Fringe Benefit Bond||Painters District Council #30||Apply Now|
|Illinois||Local 701 - IBEW Sign Agreement Bonds||Local 701 - Int'l Brotherhood of Electrical Worker||Apply Now|
|Illinois||Granite-Cutters Union Local #21 Wage and Welfare B||Granite-Cutters Union Local #21||Apply Now|
|Illinois||OPCMIA Wage and Welfare Bond||OPCMIA - Local 11||Apply Now|
|Illinois||Fringe Benefit & Wage Bond||Mid-Central Illinois Regional Council of Carpenter||Apply Now|
|Illinois||Fox Valley Laborers Wage and Welfare Bond||Fox Valley Laborers Fund Office||Apply Now|
|Illinois||Contractor's Wage & Fringe Benefits Bond (Local 50||Cement Masons Local 502||Apply Now|
|Illinois||IBEW #9 Employer's Fringe Benefits Bond||Local Union 9 IBEW||Apply Now|
|Illinois||Employer's Bond (Construction and General Laborers||Laborers' District Council of Chicago & Vicinity||Apply Now|
|Illinois||Employer's Fringe Benefit Bond||Local Number 134 International Brotherhood of Elec||Apply Now|
|Illinois||Chicago Painter's District Council Wage and Fringe||Painter's District Council #14||Apply Now|
|Illinois||(Local Union No 597) Contractor's Wage and Welfare||Local 597 Pipe Fitters||Apply Now|
|Illinois||Dues and Fringe Benefit Bond (IBEW 461)||IBEW Local 461||Apply Now|
|Illinois||The Central Laborer's Pension Fund Bond||central laborers pension fund||Apply Now|
|Illinois||Insulation Work Bond (Local 17)||International Association Heat & Frost Insulators||Apply Now|
|Illinois||Contractors Wage, Wage Deduction and Fringe Benefi||CONSTRUCTION WORKERS PENSION TRUST FUND OF LAKE CO||Apply Now|
|Illinois||IBEW Local 150 Contractor Wage and Fringe Bond||IBEW Local 150||Apply Now|
|Indiana||IBEW Local 531 Contractor's Wage, Fringe Benefit a||Intl Brotherhood of Electrical Workers Local 531||Apply Now|
|Indiana||IBEW Local 153 Contractor Wage Bond||Intl Brotherhood of Electricial Workers Local 153||Apply Now|
|Local Government||AIWU Local #63 Bond||Architectural & Ornamental Iron Workers Union 63||Apply Now|
|Local Government||Employer Wage and Fringe Benefit Bond||Local 176 IBEW||Apply Now|
|Maryland||Local Union No. 24 - Electrical Workers, AFL-CIO||Local Union No. 24 Intl Brotherhood of Elec.Worker||Apply Now|
|Maryland||Maryland Electrical Industry Funds||Maryland Electrical Industry Funds||Apply Now|
|Maryland||Voice - Data - Video National Agreement Bond||International Brotherhood of Electrical Workers||Apply Now|
|Maryland||Plumbers and Steamfitters Local 486 Joint Administ||Plumbers and Steamfitters Local 486 Joint Funds Ad||Apply Now|
|Maryland||Payment of Employee Benefit Contributions and Wage||MARYLAND PLUMBING & PIPEFITTING||Apply Now|
|Maryland||Wage Payment Bond (IBEW Local 26)||IBEW Local 26||Apply Now|
|Maryland||Employer's Wage, Expense, Welfare and Pension Fund||International Association Heat & Frost Insulators||Apply Now|
|Maryland||Guaranteed Payment Bond (Local 26 IBEW-NECA)||IBEW Local 26||Apply Now|
|Massachusetts||Local No.12 Trust Funds and Other Funds Payment Bo||Trustees of Plumbers Union Local 12 Trust Funds||Apply Now|
|Minnesota||Fringe Benefit Bond (MCTCA)||MN & ND Bricklayers and Allied Craftworkers||Apply Now|
|Missouri||Painters' District Council #2||Painter's District Council #2, Saint Louis||Apply Now|
|Missouri||Employer's Wage, Expense, Dues Check Off, and Vaca||Insulators & Allied Workers Local No.||Apply Now|
|Missouri||Pension, Welfare and Vacation Funds Bond||CEMENT MASONS LOCAL 527 & CEMENT MASONS LOCAL 527||Apply Now|
|Missouri||Guaranteed Payment into Miscellaneous Benefit Fund||Glaziers Local 513||Apply Now|
|Missouri||Construction Laborers' Benefit Office Wage and Wel||Construction Laborers' Benefit Office||Apply Now|
|Missouri||Employer Contributions to Employee Benefit Plans||Sheet Metal Workers Local 36||Apply Now|
|Missouri||IUOE Local 513 Wage Contribution Payment Bond||IUOE Local 513||Apply Now|
|Missouri||Wage and Welfare Funds Bond (Labors Local #110)||Labors Local #110||Apply Now|
|Missouri||Operating Engineers Local 101 Employer Benefits Bo||Operating Engineers Local 101||Apply Now|
|Missouri||Employer Contributions To Employee Benefit Plans||Sheet Metal Workers' Local 36||Apply Now|
|New Jersey||Wage & Fringe Benefit||International Brotherhood Of Electrical Workers||Apply Now|
|New Jersey||Wages & Fringe Benefits||International Brotherhood of Electrical Workers||Apply Now|
|New Jersey||Wages & Fringe Benefits||International Brotherhood Of Electrical Workers Lo||Apply Now|
|New Jersey||Wage and Welfare Local Union #164||IBEW LOCAL 164||Apply Now|
|New Jersey||Pipefitters Lcoal 274 Wages & Fringe Benefits Bond||Pipefitters Local Union 274||Apply Now|
|New Jersey||(U.A. - N.J.) Employee Benefit Funds Wage and Bene||Refrigeration & Air Conditioning Service Division||Apply Now|
|New Jersey||OPERATING ENGINEERS LOCAL 825 FRINGE BENEFIT FUNDS||Operating Engineers Local 825||Apply Now|
|New Jersey||Refrigeration & Air Conditioning Service Employee||Refrigeration and Air Conditioning Service Divisio||Apply Now|
|New York||Steamfitters' Industry Funds Construction Trades||Steamfitters Local 638||Apply Now|
|New York||Welfare, Pension, Annuity Payment Bond||IBEW Local Union 363||Apply Now|
|New York||IUEC Wage and Fringe Benefit Payment Bond||NY LOCAL 1 IUEC||Apply Now|
|New York||Local Union #9 Wage & Welfare Bond||TRUSTEE OF THE DISTRICT COUNCIL NO. 9 OF NEW YORK||Apply Now|
|New York||International Union of Painters||Trustess of the District Council No. 9 of New York||Apply Now|
|New York||Fringe Benefits Only Bond||Sheet Metal Intl #28||Apply Now|
|New York||Sheet Metal Workers International/Local Union #28||Sheet Metal Workers International/Local Union #28||Apply Now|
|New York||Steamfitters' Industry Funds Construction Trades B||The Steamfitters' Industry Fund||Apply Now|
|New York||Fringe Benefits Bond (Local #200)||Plumbers Local No. 200||Apply Now|
|Ohio||Wages & Fringe Benefits||Local Union #32 IBEW Lima OH||Apply Now|
|Ohio||Fringe Bond||International Union of Operating Engineers, Local||Apply Now|
|Ohio||Secure Payment of Wages and Fringe Benefits Bond||Local Union No. 24 Sheet Metal||Apply Now|
|Ohio||Contractor Wage and Fringe Benefit Bond||Northern Ohio PMC, INC.||Apply Now|
|Ohio||Wage & Fringe Benefit Bond (Plumbers & Steamfitter||Plumbers & Steamfitters Local 42||Apply Now|
|Oregon||Statutory Public Works||Construction Contractors Board||Apply Now|
|Other||Painters District Council #14||Painter's District Council #14||Apply Now|
|Other||Bricklayers Employers Bond||United Order of American Brick Layers and Allied C||Apply Now|
|Other||Ohio Vicinity Regional Council of Carpenters||Ohio Vicinity Regional Council of Carpenters||Apply Now|
|Other||Plumbers Local 27||Plumbers Local 27||Apply Now|
|Other||Northern California Drywall Finishers||Dist 16 Northern CA Health & Welfare Trust Fund||Apply Now|
|Other||Steamfitters Local 449||Steamfitters Local 449||Apply Now|
|Other||Mid-Central IL Regional Council of Carpenters||Mid-Central IL Regional Council of Carpenters||Apply Now|
|Other||Plumbers & Steamfitters Local 47||Plumbers & Steamfitters Local 47||Apply Now|
|Other||Contractor To Secure Payment of Wages||Painters Local Union No. 555||Apply Now|
|Other||NYC District Council of Carpenters Wage & Welfare||The New York District Council of Carpenters||Apply Now|
|Other||Sheet Metal Workers International Assoc. Local Uni||Sheet Metal Workers Int'l Assoc. Local 28||Apply Now|
|Other||Operating Engineers Joint Trust Funds, Local 77||Associated Administrators||Apply Now|
|Other||Wage, Fringe Benefit and Payroll Deduction Bond||IBEW Local Union 34||Apply Now|
|Other||Benefit Contribution & Wage Payment||Electrical Industry Board||Apply Now|
|Other||Steamfitters' Industry Funds Construction Trades||Local 638 Steamfitters Union||Apply Now|
|Other||Wages & Fringe Benefits Bond||Steamfitters Local Union 420||Apply Now|
|Other||International Union of Painters||District Council 9 Local 1281||Apply Now|
|Other||Contractors' Wage, Welfare and Pension Funds Bond||Glaziers Union Local No. 27||Apply Now|
|Other||Contractor's Wage, Fringe Benefit and Deductions||Teamsters Local Union 142||Apply Now|
|Other||Laborers District Council of Chicago and Vicinity:||Laborers District Council of Chicago and Vicinity||Apply Now|
|Other||Fringe Benefit Contribution Security Fund||United Association Local Union No. 725||Apply Now|
|Other||Construction Laborers' Benefit Office of St. Louis||Construction Laborers' Benefit Office||Apply Now|
|Other||Insulators Local 80- Employers Wage, Expense, Welf||Insulators Local 80||Apply Now|
|Other||Secure Payment of Wages and Fringe Benefits Bond||Local Union No. 24 Sheet Metal Workers Int'l Assoc||Apply Now|
|Other||Wages & Fringe Benefits||IBEW Local Union 317||Apply Now|
|Other||International Union of Operating Engineers Local 1||The International Union of Operating Engineers||Apply Now|
|Other||Wages & Fringe Benefits||IBEW Local #305||Apply Now|
|Other||Wages & Fringe Benefit Bond||IBEW Local No. 380||Apply Now|
|Other||Wage and Welfare||Carpenters' District Council of St. Louis||Apply Now|
|Other||Sheet Metal Trades Contractor's Benefit Funds||Local Union No. 33, Parkersburg District||Apply Now|
|Other||Wages & Fringe Benefits Bond||Intl Assoc of Bridge, Structural, Ornamental & Rei||Apply Now|
|Other||Payment of Fringe Benefits Bond||Plumbers & Pipefitters Local 562||Apply Now|
|Other||S.W. Washington Trust Funds Bond||oregon- S.W. Washington Electrical Trust Funds||Apply Now|
|Other||Bridge Structural and Reinforcing Iron Workers Bon||Local 1 Structural Workers Union||Apply Now|
|Other||IBEW-NECA Local 26 Guaranteed Payment Bond||Local 26 IBEW-NECA, Joint Trust||Apply Now|
|Other||Wage and Industry & Fringe Benefit Funds Payment G||IBEW Local #38||Apply Now|
|Other||Contractors' Wage, Welfare and Pension Fund Bond||Glaziers Local 513||Apply Now|
|Other||Local #520 Wage & Welfare Bond||Employers and Operating Engineers Local 520||Apply Now|
|Other||Contractor's Wage and Fringe Benefit (Local 172) B||Local 172||Apply Now|
|Other||Employer's Wage Bond||IBEW Local 134||Apply Now|
|Other||Wage and Welfare Bond (Local Union #68)||U.A. Plumbers Local Union No. 68||Apply Now|
|Other||Roofers Health and Welfare Trust||Roofers Health and Welfare Trust Fund of Californi||Apply Now|
|Other||IBEW Local Union #98||IBEW Local #98||Apply Now|
|Other||IBEW Local #124||IBEW Local #124||Apply Now|
|Other||IBEW Local No. 58||IBEW Local #58||Apply Now|
|Other||Wage & Welfare||Sprinkler Fitters UA Local #709||Apply Now|
|Other||Steamfitter's Industry Funds||Steamfitters Local 638||Apply Now|
|Other||Wage & Welfare Union #440||Plumbers and Steamfitters Local Union No. 440||Apply Now|
|Other||Welfare, Pension, Annuity, Job Training & Vacation||Local 282 Welfare Trust Fund||Apply Now|
|Other||Employer's||Laborer's International Union of North America||Apply Now|
|Other||Wage & Welfare Fringe Only (NYC Council of Carpent||The New York District Council of Carpenters||Apply Now|
|Other||Carpenter's District Council $25K||CARPENTER'S DISTRICT COUNCIL OF ST LOUIS||Apply Now|
|Other||Carpenters' District Council Wage and Welfare Bond||Carpenters' District Council of St. Louis||Apply Now|
|Other||UA Local No. 22 Employee Benefit Funds||UA Local No 22 Employee Benefits Funds||Apply Now|
|Other||Wages, Welfare and Fringes||IBEW Local 400||Apply Now|
|Other||IBEW Local 26 Wage Payment Bond||IBEW Local 26||Apply Now|
|Other||Roofers Local #195 Bond||Roofers Local #195||Apply Now|
|Other||Health and Welfare Bond||Sheet Metal Workers' Local No. 49 JATC||Apply Now|
|Other||Health and Welfare Bond||Sheet Metal Workers' Local No. 49||Apply Now|
|Other||Health & Welfare, Vacation, Pension Funds & JATC F||Puget Sound Electrical Workers||Apply Now|
|Other||SMWIA Performance Bond||SMWIA, Local 104||Apply Now|
|Other||Employer's Fringe Benefit Communication Agreement||IBEW Local 134||Apply Now|
|Other||United Plant and Production Workers Bond (Local 17||Local 175 United Plant and Production Workers||Apply Now|
|Pennsylvania||Local 420 Steamfitters Bond||Local 420 Steamfitters||Apply Now|
|Pennsylvania||Wages & Fringe Benefits Bond||IBEW Local 98||Apply Now|
|Pennsylvania||Wage & Fringe Benefit Bond (IBEW Local 380)||Local No.380 I.B.E.W.||Apply Now|
|Pennsylvania||Local Union 27 Plumbers Benefit Funds Bond||Local 27 Plumbers Union||Apply Now|
|Virginia||International Brotherhood of Electrical Workers an||IBEW Local 666||Apply Now|
|Washington||Local Union 191 Welfare Traning Fund||Board of Trustees of the Fringe Benefit Board||Apply Now|
|West Virginia||Wage Payment Bond||WV Division of Labor||Apply Now|
|West Virginia||(WVCJAT)Wages & Fringe Benefits Bond||West Virginia Carpenters Joint Admin. Trust||Apply Now|
|West Virginia||Wage Payment Collection Surety Bond||Division of Labor||Apply Now|
|Wisconsin||Wages & Fringe Benefit Bond (North Central States||North Central States Regional Council of Carpenter||Apply Now|
|Wyoming||Non-Resident Employers' Bond||Dept of Workforce Services, Worker's Comp Div||Apply Now|