The Tax Reform Act (TRA '86) brought about a drastic change for leasing companies and their clients who sponsored pension or profit sharing plans separately from their employees. According to (TRA '86) this option was virtually eliminated. This caused leasing companies to completely alter their Marketing. Many shut down, those that remained began to accent human resource management.

As luck would have it. When Leonard Ellis informed his leased employees that they were likely to lose their pension plans, several young women, who had been members of a union in their prior employment, contacted their former union representative, who, in turn, contacted Leonard Ellis. The two met, they had a rapport, when the employees requested union representation, Ellis canvassed other employees who responded favorably by vote and the company agreed to a contract with the union.

The benefits to all concerned were immediate. Unionization essentially negated the TRA '86 restrictions.

More recently, the IRS issued revenue procedure 2002-21, which put another damper on the leasing industry and its clients, who sponsored defined contribution plans (mainly 401(k). Since Staff Providers plan is solely for the benefit of their employees, the clients will be unaffected by this procedure.

During all the years of unionization, no client has ever had a problem. All of the legal backup is available upon request.