In 1946, NECA and IBEW reached an employee benefit agreement requiring electrical contractors to place what percentage of gross wages into a new fund?

• A. 0.5%
• B. 1%
• C. 2%
• D. 5%

Answer: (B)

The idea being tested is that labor agreements sometimes fund employee benefits with a fixed employer contribution, taken as a share of payroll. In the 1946 agreement between NECA and IBEW, electrical contractors committed to placing a fixed portion of gross wages into a dedicated employee-benefit fund. That fixed portion was one percent. This choice provides a predictable, steady stream of money to support workers’ benefits while keeping the cost manageable for employers. If the contribution were smaller, the fund might be underfunded; if larger, it would be a heavier burden on contractors. One percent strikes a balance that fits the era’s negotiations and the goal of building a lasting benefits program.