Scholarship Loan Agreements (SLAs) have proven to be effective at retaining apprentices in the unionized construction industry throughout the term of training and beyond. Under the Alliance’s Model SLA, the JATC advances the cost of training to the apprentice, and the apprentice agrees to repay those costs, either in cash or, the preferred way – “in kind” – by working a specified number of years after graduation for contributing employers. The Courts have unanimously approved these agreements. However, there have been changes in the law that have made it more difficult to collect “in cash” when an apprentice, or former apprentice, defaults on the loan. As a result, a number of JATCs are now using “Tuition Reimbursement Programs,” under which the apprentice pays as he or she goes, through payroll deductions when working. This session will discuss both options and address questions about structure and enforcement of each.
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