To prevent employers (most often contractors) from withholding wages from iron workers or contributions to the union’s trust funds, unions in Ohio require a Wage and Welfare Bond to be filed to ensure that the contractor will pay all wages and dues. Jet Insurance Company provides an Iron Workers’ Wage and Welfare Bond so that if the employer refuses to or cannot pay the iron worker(s) or union dues, the union can take action on the bond to fulfill any payment owed.
In Ohio, Iron Worker Wage and Welfare Bonds are required by the following unions: the International Association of Bridge, Structural and Ornamental Iron Workers’ Union, Local No. 17 and No. 550, and the Iron Workers District Council of Southern Ohio and Vicinity Pension Trust, Benefit Trust, and the Annuity Trust.
The cost of a Wage and Welfare Bond for Iron Worker Unions in Ohio starts at $250 per year with Jet. The rate that is offered is based on a few factors to determine how risky it is to issue the bond. Underwriting for this bond evaluates the bond limit required and your personal credit. For higher limits, business and/or personal financials may also be considered.
The chart below shows what rates are available to an applicant in good credit standing.
|Bond Term||Annual Cost|
When you buy your bond with Jet, you can directly contact the insurance company (Jet) who is backing your bond. Jet cuts out the middleman to make sure that no unnecessary fees (think broker fees) or delays are part of your bonding experience.
The bond limit that is needed depends on which union you are hiring iron workers from. The bond limit for the District Council of Southern Ohio is typically $20,000 but they allow new contractors to hold a $5,000 cash bond as long as they pay contributions on a weekly basis, provided that a $20,000 bond is filed when able.
A $25,000 bond must be filed with the Local Union No. 550.
A bond for the Local Union No. 17 depends on how many iron workers are hired:
The unions that require this bond use it to guarantee that if the contractor fails to complete payment of wages to ironworker union members there is financial recourse available through the surety company (Jet). The bond also protects the annuity, benefit, and pension trusts set up by the union.
Local Unions No. 17 and 550 and the District Council of Southern Ohio have a mission to protect the wellbeing of iron workers. The bond assists in this by making sure that union members will be compensated for their work or funds are available to assist them.
It is easy to apply through our online step-by-step application, which can be done within minutes. We only ask for what is needed, such as business information and the social security number of the contractor/employer (this is needed for a soft credit check and doesn’t impact credit scores). For bonds over $10,000, a review of financial statements may be needed.
Bond limits of $10,000 may be instantly approved for a rate after the application is completed. Once the review is complete, you will be emailed a rate that you can purchase online. After payment is received, you will be emailed a receipt and a copy of your bond for your records.
Jet can prepare your Ohio Iron Workers’ Wage Bond form for you and mail it to the union that requires it. But, you can file the bond yourself by selecting that option when you are checking out.
The original bond must be submitted to the union you are working with:
Iron Workers Local Union No.17
1544 East 23rd St
Cleveland, OH 44114
Iron Workers Local Union No. 550
618 High Ave NW
Canton, OH 44703
Iron Workers District Council of Southern Ohio and Vicinity
Benefit, Pension and Annuity Trust
1470 Worldwide Pl
Vandalia, OH 45377
No problem; you can cancel an Ohio Wage and Welfare Bond for Iron Workers by giving Jet a written notice, either through the mail or by sending an email to email@example.com. Once we receive the request for cancellation, we will notify the union that your bond is with to begin the cancellation process. The District Council will cancel the bond after 30 days; Local Unions 17 and 550 will cancel after 60 days.
Once the cancellation has been finalized, Jet will calculate any remaining time from the bond term into a refund.
These bonds need to be renewed each year that union members are hired by a contractor. When your term is ending, Jet will send out a notice of renewal through mail and email. All you have to do is complete the renewal by paying the premium to keep your bond active — Jet will take care of the rest. If there is a change to your bond limit, you can address it at this time to make sure that you hold the correct amount of coverage required.
Wage and Welfare Bonds are utilized by unions in Ohio to make sure that their members are not hired by contractors and left to hang out to dry when it’s time for compensation. Should a contractor or employer of these union members fail to pay them for the work they did or for vacation, welfare, or pension contributions that were specified in the Collective Bargaining Agreement, the iron workers’ union can seek recompense from the bond.
As long as the contractor makes all payments that are owed to the iron worker or union, there should not be cause for a claim. It’s best to comply with this because if a claim is filed it will lead to a stressful legal procedure and you would still be responsible for paying the amount that was due. Usually, you will receive a complaint that payment was not made, with a claim used as a last resort. If you receive a complaint, mend it by making sure that payment is completed so it does not escalate.
Whenever you receive notice of a claim on your bond, contact Jet right away. We will shield you from false allegations by conducting an investigation into the validity of the claim. Jet will provide the union (as claimant) with the necessary documents, while you are responsible for maintaining open and honest communication.
If an acceptable proof of loss is submitted, Jet must come to a conclusion of the investigation within 21 days. A claim that is found to be valid must be paid out to the union by Jet. Since a bond is used as protection against your actions that are in violation of the Collective Bargaining Agreement, you are ultimately responsible for paying Jet back. Failure to pay back the claim will effectively burn any bridges with other surety companies, making it difficult to purchase another bond.
It’s possible that a contractor who employs workers of other trades may run into other unions that have a bond requirement as well. In addition, there are various Ohio construction bonds required on a city-, county-, or state-level.