Opinion: Even Newsom agrees that Labor shouldn't be paid to strike
Image by Wikimedia Commons
California had to beg the fed gov't for $20 billion during Covid, just to stay up-to-date on providing unemployment benefits. Yet some union members think they should get checks after voluntarily striking for 2+ weeks. As the NY Times reports, Gov. Newsom recently vetoed controversial SB 799, citing CA's existing “sizable debt.”
Gov. Gavin Newsom of California vetoed legislation on Saturday that would have allowed workers to collect unemployment pay while on strike, disappointing union leaders who had hoped to capitalize on a wave of high-profile walkouts during the state’s “hot labor summer” this year.
Why It Matters: The bill would have given unionized workers more power in dealing with employers.
Labor unions hold more sway in California than in most other states, with an electorate dominated by Democrats and a large roster of liberal officeholders who rely on union support. But California, with its high costs of living, is an expensive place to go on strike without income.
Employers are often able to simply wait out a labor action, knowing that the lost income alone will force unionized workers back to the bargaining table. Hollywood writers repeatedly expressed this concern during their recent strike, which lasted nearly five months before a tentative contract agreement was announced Sept. 24.
This bill, backed by the California Labor Federation and an assortment of unions while opposed by the state Chamber of Commerce and various business associations, would have given workers more leverage in contract negotiations by making it less costly to strike.
Background: Business owners equated approving the bill with raising taxes.
Unemployment benefits in California are funded by a payroll tax on businesses, but the tax is so low and generates so little revenue that the state had to borrow $20 billion from the federal government to provide benefits during the pandemic.
This article originally appeared in the New York Times. Read the whole thing here.
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