ILNews

Judges affirm construction company had to pay into union funds

Back to TopCommentsE-mailPrintBookmark and Share

The 7th Circuit Court of Appeals agreed with an Indiana federal court that a construction company that entered into a working agreement with a cement masons union had to contribute to two funds for all hours worked, not just bargaining unit work.

DLF Construction’s agreement with Local 692 of the Cement Masons Union bound DLF to all collective bargaining agreements between the union and various employer associations. Under the CBAs, DLF is required to make fringe benefit contributions to a pension fund and a health and welfare fund established by the union.

An audit of the funds revealed that DLF didn’t make contributions to the funds on behalf of a journeyman cement mason and member of the local union over the course of two years. DLF only contributed to the funds for cement-related work, not other work the union member performed for DLF, including painting and demolition. The audit report indicted DLF owed nearly $12,000 in fringe benefit contributions.

The District Court granted summary judgment in favor of the union funds.

DLF argued that under the Memorandum of Joint Working Agreement, it’s not contractually bound to make contributions for non-bargaining unit work, but DLF has misinterpreted the working agreement. It cited Section 2 in support, but that section binds DLF to the CBAs and establishes what type of employee is covered under the CBA. That section does not limit the CBAs coverage to employees only doing bargaining unit work, the appellate court held in Mark McCleskey, trustee, et al. v. DLF Construction Inc., an Indiana corporation, 11-1826.

There is no language in either the working agreement or CBAs that limits DLF’s obligations to make fringe benefit contributions, so the District Court was correct in finding DLF must pay into the funds for each hour worked by the union journeyman.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  2. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

  3. I will agree with that as soon as law schools stop lying to prospective students about salaries and employment opportunities in the legal profession. There is no defense to the fraudulent numbers first year salaries they post to mislead people into going to law school.

  4. The sad thing is that no fish were thrown overboard The "greenhorn" who had never fished before those 5 days was interrogated for over 4 hours by 5 officers until his statement was illicited, "I don't want to go to prison....." The truth is that these fish were measured frozen off shore and thawed on shore. The FWC (state) officer did not know fish shrink, so the only reason that these fish could be bigger was a swap. There is no difference between a 19 1/2 fish or 19 3/4 fish, short fish is short fish, the ticket was written. In addition the FWC officer testified at trial, he does not measure fish in accordance with federal law. There was a document prepared by the FWC expert that said yes, fish shrink and if these had been measured correctly they averaged over 20 inches (offshore frozen). This was a smoke and mirror prosecution.

  5. I love this, Dave! Many congrats to you! We've come a long way from studying for the bar together! :)

ADVERTISEMENT