Short answer: Union employees usually get health coverage through a multiemployer, or Taft-Hartley, plan rather than a plan the individual employer runs. Participating employers contribute to a jointly managed trust fund at a rate set by the collective bargaining agreement, often per hour worked, and the fund provides the benefits. Eligibility is typically based on hours worked, so coverage can continue as employees move between participating employers.
When a workforce is unionized, health benefits are usually delivered through a multiemployer plan, commonly known as a Taft-Hartley plan, rather than a plan the employer designs on its own. The plan is created through collective bargaining between one or more unions and the employers that participate.
How these plans are governed and funded:
A multiemployer plan is run by a joint board of trustees with equal representation from labor and management. Participating employers fund it through contributions set by the collective bargaining agreement, frequently a fixed amount per hour worked, paid into the trust on a regular schedule, along with the fund’s investment earnings.
What it means for employers and workers:
For a covered employer, the obligation is usually to contribute to the fund at the bargained rate rather than to administer a plan directly, and any non-union employees are typically covered under a separate company plan. For workers, eligibility is generally based on hours banked rather than continuous employment with one company, so coverage holds steady even when they move between job sites or employers in the group. Because many employers pay into the same fund, cost and risk are pooled across a larger population.