Original Message

And did the union report their per diem as income to the IRS?  (Which was the issue, not the diversion tangent you attempted)

Per Diem rates $59/day are considered income, not reimbursements and need to be taxed.  That's why the companies keep it at the standard rate or below, including airlines.  Airlines paying per diem to pilots flying out-in schedules get taxed because it doesn't involved an overnight.