Health fund launches three suits against companies

Contractors face ERISA charges, claims of giving union workers short shrift

Email | Print By Kyle Swenson

A trio of Tennessee construction companies have been targeted by a health and welfare fund for allegedly failing to comply under the Employee Retirement Income Security Act. In three separate suits filed in U.S. District Court, the Southwest Laborers Health and Welfare Fund targeted Columbia-based W.M. White Inc., Morrison-based Millco Inc. and Knoxville-based Performance Contracting Inc.

The companies had contracted with the fund to make payments for the provision of benefits, the suits say, but have “neglected and refused to pay the amounts that are due.”

According to the fund's attorney, R. Jan Jennings with Branstetter, Stranch & Jennings, the fund conducted a routine audit for compliance and discovered the three companies' supposed shortfalls.

“Each of the companies appears to have been making payments based upon whether people who worked in the bargaining unit were union members or not,” Jennings told NashvillePost.com. “That's not the way the contract calls for it and, as far as I'm aware, federal labor law does not allow for that distinction.”

Jennings stressed the suits are based on separate yet have similar circumstances.(Access the complaints here: Millco, Performance and White.)

Representatives of Performance Contracting were not immediately available for comment. A representative of W.M White said she was not aware of the suit when reached for comment. Millco owner Charles Thompson said he is in the process of getting an attorney and declined to comment further.