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Obligee: IBEW Local 508 Surety Bond Surety Bonds

IBEW 508 Bond – Wage and Welfare Funds

A wage and welfare bond (also referred as a Union Bond, Wage Fund Bond or Welfare Fund Bond) is required by unions when negotiating collective agreements with other companies. The bond guarantees an employer will honor the payments of union dues, contributions to funds and promised benefit packages to employees of the union. If a union member company fails to uphold its obligations under the bond?s terms, the bond amount is used to pay claims for salaries, wages, fringe benefits and/or compensation for services rendered by employees represented by the union. Each particular wage and welfare bond is unique to the union by whom it is required.

The IBEW Local 508 Surety Bond is mandatory for contractors working under the International Brotherhood of Electrical Workers (IBEW) Local 508 in Savannah, Georgia. This bond ensures that the contractor will fulfill the contract’s terms and pay their workers all necessary wages and benefits. Generally, the bond amount is 10% of the contract price, and the premium is 1% of the bond amount.

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1 833 7-SURETY

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