Chicago Automobile Trade Association


November 23, 2010
An article in the March 17 edition of this newsletter about employees who are on military leave contained certain information relating to pension obligations that requires further explanation. Specifically, CATA dealers who are signatory to the standard labor contracts with IAM Local 701 or Teamsters Local 731 are not required to make pension contributions for employees represented by those unions while the employees serve in the military. Governing plan documents specifically provide that the Local 701 and 731 Pension Funds, not individual dealers, are liable for those required contributions. Questions regarding pension contributions for employees working under other union contracts, or who are not represented by a union, should be directed to Franczek Sullivan P.C., as the answer will depend on the specific plan and contract language at issue. Franczek Sullivan represents CATA dealers in labor and employment matters. The Chicago law firm has prepared a detailed memorandum outlining what CATA dealers should know about their obligations to workers serving in the military. For a copy, call Mike Palmer at 312- 786-6571.


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