Beware of pension pitfalls if terminating union contracts

Description

Abstract: Some contractors may try to slash labor costs and payroll expenses by parting ways with workers whose price tags have exceeded their limits. If the employees in question are union laborers, this can be an expensive proposition for a construction company — especially if the union has a pension fund. As this article explains, concession bargaining can often convince trade unions to forgo or give back improvements in pay and conditions in exchange for job security. Other alternatives include petitioning for union decertification or setting up separate enterprises to take on union projects.