What Is a Union Bond (Wage & Fringe / Wage &
Welfare)
A union bond—also known as a wage & fringe bond, wage & welfare bond, or collective bargaining bond—is a surety bond required by labor unions to ensure contractors pay all required union wages, fringe benefits, and contributions on time.
This bond protects unions and their members from:
- Unpaid wages
- Unpaid fringe benefits
- Unpaid health, pension, or welfare contributions
- Contract violations
- Failure to comply with collective bargaining agreements
If you work with union labor, the union may require this bond before allowing your company to dispatch workers to a project.
Union Bond Amounts and Cost
Bond amounts vary by union and typically range from $10,000 to $500,000, depending on:
- Number of union workers employed
- Trade or craft (electrical, plumbing, carpentry, etc.)
- Size and duration of the project
- Collective bargaining agreement requirements
Your premium depends on:
- Bond amount
- Credit score
- Company financials
- Experience with union projects
Most contractors qualify quickly with competitive rates, even for high‑value bonds.
Who Needs a Union Bond
You may need a union bond if you are:
- A general contractor working with union labor
- A subcontractor signing a collective bargaining agreement
- A construction firm hiring union workers
- A specialty contractor (electrical, HVAC, plumbing, etc.)
- A company required to guarantee wage and benefit payments
Any contractor participating in union projects may be required to file this bond before work begins.
Union Bond Requirements & Eligibility
Unions typically require:
- Signed collective bargaining agreement
- Union‑mandated bond amount
- Credit review
- Company financial statements
- Proof of business history
- Annual or project‑specific renewal
Some unions require higher bond amounts for new contractors or large crews.
How the Union Bond Process Works
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Secure the Lowest Rate
We match you with the best rate available from A‑rated sureties.
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Receive your bond
Same‑day issuance available for union filing.
Why Contractors Choose Us
- Lowest rates from A‑rated sureties
- Fast approvals
- Digital delivery for immediate filing
- Construction & union‑bond specialists
- 100% compliance guaranteed
Top questions answered
Our most common questions answered efficiently.
Premiums vary based on bond amount, credit, and financials.
Many union bonds are approved the same day.
It guarantees payment of union wages, fringe benefits, and welfare contributions.
Surety bonds are generally non‑refundable once issued.
Yes — each union typically requires its own bond.
