Union business owner

[Guest clar7490]

I have a card carying union business onwer who owns 100%. He has 3 non-union employees. He has approx 40 union employees. Union employees are cover by union retirement plan which owner contributes to. Currently the owner also pays into the union plan for his own retirment plan coverage and also health care coverage. The owner wants to keep the health care coverage but stop his union retirement plan contributions and use the company sponsored 401(k).

I've heard and read yes he can do it. I've heard and read no he cannot.

Yes he can

Owners/management are not employees and thus not covered by CBA

He is a "bargaining unit alumni" which allows him keep union benefits but not be covered by CBA

His wages are not collectively bargained (pays himself what he wants/can) and thus not covered by CBA

No he can't

Document says Union = Any Employee who is included in a unit of Employees covered by a CBA, if retirement benefits were the subject of good faith bargaining. "Employee" definition does include Self Employed. "Self Employed" is any indvidiual who has Earned Income from the business.

He has a union card so he is union until he turns in his card.

Any respnse is appreciated.

[ETA Consulting LLC]

I've often made arguments for and against. The key, however, is knowing where to draw the line. There is "mandatory" disaggregation for union and nonunion. The union line is drawn "not by the title of union", but by the fact that "the benefits on the work or Compensation is subject to Collective Bargaining". With that in mind: "IF" the owner of the Company receives compensation in two forms: 1) So many required hours of labor under the union contract and 2) Compensation for providing management functions to the business; then it is conceivable that the owner could benefit solely from the non-union wages he receives from managing the company.

Just think, if you're employed with a company for the first part of a year and then join the union, you are not allowed to aggregate your Compensation for the full year for contribution or testing purposes. The "Chinese Wall" between union and nonunion will preclude you from doing this. The difference here, in my mind, is that the Compensation received for services performed is either union or non-union; making it possible to receive both during a single year (or even simultaneously).

Good Luck!