In combination, a welding gun having an electrode holder, an electrode attached to the electrode holder, and an electrode cap attached to the electrode holder, and a collet assembly, comprising an actuator, and a collet connected to the actuator, the collet assembly being installed on the electrode holder, the collet being moveable by the actuator from an advanced position, in which the collet is adapted to grip a fastener, and a retracted position, in which at least a portion of the collet is retracted into the actuator to enable the electrode to weld the fastener to an external work piece, and in which the collet is adapted to release the fastener, wherein the electrode is shrouded by the collet when the collet is in its advanced position, and the electrode is exposed from the collet when the collet is in its retracted position.