SUBLET WORK. A. The parties acknowledge that a close relationship exists between the Employer and its subcontractors on its job sites; and that employment of craftsmen at a particular job site is sporadic, necessitating a ready supply of craftsmen such as are available through the resources of the Union; that precise knowledge concerning present and prospective labor costs is essential to the Employer for the purpose of bidding; and that it is necessary and desirous to reduce the friction that results when union and non-union workers are required to work together at the same job site. The parties recognize the strong interest of the Union in insuring a continuity of hiring hall employment opportunities for its members, and continuity of funding as and for the employee benefit trust funds, to the benefit of its members and their dependents. The parties recognize in this regard that such objectives can best be achieved by requiring that all work described in this Agreement be performed by business concerns signatory to this Agreement. B. Two or More Employers: The Employer Signatory to this Agreement hereby agrees that no two or more Employers having separate shop cards will be allowed to work for each other as employees. The Employer shall not contract or subcontract any job site work heretofore described except to a person, firm, partnership, corporation or other entity that is licensed in accordance with State Law and signatory to this Agreement. The Employer agrees that he will not sublet or contract to his employees. It shall be deemed a violation of this Agreement for any employee to act as a labor contractor. C. The Employer agrees that in the event he subcontracts any work covered by this Agreement, the subcontract shall be in writing and a copy submitted to the Painters and Allied Trades District Council No. 36 and to the LMCC Office prior to commencement of the job by the subcontractor. The LMCC Office shall notify the Employer in writing within seventy-two (72) hours the status of the subcontractor. The subcontracting agreement shall contain a provision that the subcontractor shall be responsible for the observance of all terms and conditions of this Agreement including the payment of wages and other monetary obligations. In the event that any subcontractor fails to pay the wages or other monetary obligations provided under this Agreement, the Employer shall become liable for the payments of such sums and such sums except liquidated damages immediately become due and payable by the Employer. In the event that work described in this Agreement is subcontracted to any party not signatory to this Agreement, all monies paid to the subcontractor shall be considered gross wages and divided by the basic hourly wage rate, excluding fringe benefits to determine the hours of bargaining unit work lost. Such hours are to be assessed at an amount equivalent to all contractual contributions required of the Employer, including fringe benefits and dues check off. This formula is to be utilized whether or not the subcontractor employs workmen or performs such bargaining unit work alone. While the gross monies paid to such subcontractors are the appropriate sums to be converted to contributions due and owing, in the event that the Signatory Contractor can authenticate material, overhead and profit margin on the part of the subcontractor, such authentication may be considered by the Trust Funds and/or LMCC Judicial Committee and a reduction made in the event that such is determined to be appropriate. It is recognized by the parties that each case depends upon its own facts and that any reduction thus made by either the Board of Trustees or the LMCC Judicial Committee shall not constitute a precedent in any future case. The conversion formula as described above will be affected by use of the basic contractual rate applicable to journeymen, apprentice or clean-up, irrespective to the actual rate being paid by the Employer. The conversion formula described above and elsewhere in this Agreement is recognized as the most practical and accurate means of determining the loss of hours of bargaining unit work to the employees and the contractually required monetary payments. Such conversion formula is neither intended nor designated as a penalty against any party to this Agreement. D. The signatory contractor in no event will permit the assignment of bargaining unit work on any job site to persons not in his employ or business concerns in an amount in excess of 80 percent of the total bargaining unit work required in the construction contract. For the purpose of this paragraph, the total monetary value of the production contract shall be deemed the equivalent of the total amount of bargaining unit work provided for therein. This paragraph will be applicable with respect to any such assignment, whether in the form of a subcontract or any other type business transaction. It is the intent of this paragraph to assure that at least 20 percent of the total amount of bargaining unit work required to perform a construction contract on any job site will be assigned to employees of the Signatory Employer. It is the further intent of the parties that application of this Article is in accord with Federal and State Law. The Employer warrants that this paragraph will be strictly complied with and that any damages caused or costs incurred as a result of a violation thereof will be recoverable through the arbitration provisions of this contract or before any court of competent jurisdiction. In the event that a violation of this paragraph renders the subcontracting provisions of this Agreement invalid, as applied to any job site, the Union shall be entitled to secure such damages as would be available by application of the formula set forth in Article 5, Section 9 (C) of the Agreement.
Appears in 2 contracts
Sources: Joint Agreement, Joint Agreement