In the 1946 agreement between NECA and IBEW, electrical contractors contributed what percentage of gross wages to the new fund?

In the 1946 agreement between NECA and IBEW, electrical contractors contributed what percentage of gross wages to the new fund?

• A. 0.5 Percent Of Gross Wages
• B. 1 Percent Of Gross Wages
• C. 2 Percent Of Gross Wages
• D. 5 Percent Of Gross Wages

Answer: (B)

Understanding how joint funds are funded helps here: agreements between unions and employers often set contributions as a percentage of gross wages so the fund grows directly with payroll. In the 1946 NECA-IBEW agreement, contractors were required to contribute one percent of gross wages to the new fund. This rate provides steady, scalable funding for the programs and benefits the fund supports, without unduly burdening contractors as payroll changes. A smaller or larger percentage would either underfund or financially strain the arrangement, so one percent was chosen as a balanced amount.

Understanding how joint funds are funded helps here: agreements between unions and employers often set contributions as a percentage of gross wages so the fund grows directly with payroll. In the 1946 NECA-IBEW agreement, contractors were required to contribute one percent of gross wages to the new fund. This rate provides steady, scalable funding for the programs and benefits the fund supports, without unduly burdening contractors as payroll changes. A smaller or larger percentage would either underfund or financially strain the arrangement, so one percent was chosen as a balanced amount.