If you have employees representated by a bargaining unit (Labor Union), can you utilize a PES provider?
The use of a PES to provide employee services to bargaining employees requires the permission of the bargaining unit. Due to the need to coordinate the contract timing and other issues, services generally cover only non-bargaining unit employees.
However, with the permision of the bargaining unit and timing with the beginining of the next labor union contract, union employees and the employer would benefit from the greater experience of the human resource personnel that some PES providers staff and expanded benefits. Secondly, if the insurance benefits are provided by the business owner, the cost of the insurance premiums may be reduced by the greater buying power of the PES.
In summary, both employees and employer benefit from PES services. Business owners can proceed with the implementation of a PES solutions with or without the inclusion of union employees.
Author: Allan Peace, President, Allan Peace & Associates, allanpeace.com Date: 12/10/2009