California: Gavin Newsom Reveals Budget Reasons for Vetoing Bill for Strikers' Unemployment Pay

California Governor Gavin Newsom has vetoed a bill that aimed to provide unemployment benefits to striking workers despite receiving strong support from labor unions and fellow Democrats in the state legislature, according to Reuters.

He explained his decision to reject the bill. Gavin Newsom cited the state's substantial unemployment trust fund debt, nearing $20 billion.

The state's unemployment trust fund is already grappling with more than $18 billion in debt.

This debt accumulated during the pandemic when the fund was depleted due to the mandated closure of most businesses and the resultant surge in unemployment.

Moreover, the fund was marred by significant levels of fraud that cost the state billions of dollars.

Numbers of Employees Won't Impact Unemployment Trust Fund, Said Labor Unions

The proposed bill would have permitted workers engaged in job strikes in California for at least two weeks to receive unemployment benefits from the state, potentially amounting to $450 per week, AP reports.

Typically, only workers who have lost their jobs through no fault of their own are eligible for such benefits.

Labor unions contended that the number of workers involved in strikes exceeding two weeks is relatively small and would have had an insignificant impact on the state's unemployment trust fund.

According to Democratic state Sen. Anthony Portantino, the bill's author, only two out of 56 strikes in California over the past decade lasted longer than two weeks.

The veto decision drew criticism from labor unions, with Lorena Gonzalez Fletcher, executive secretary-treasurer of the California Labor Federation, asserting that it "punishes workers who exercise their fundamental right to strike" and favors corporations and CEOs.

California Senator Slams Gov. Gavin Newsom Veto

Sen. Anthony Portantino expressed his disappointment with the veto, emphasizing that the bill would have offered much-needed security to working families.

Proponents of the legislation argued that the expansion of unemployment benefits, which offers a maximum of $450 per week, would have provided a safety net during labor disputes, per DEADLINE.

In comparison, striking workers in New York and New Jersey are eligible for unemployment benefits after two weeks, a provision that the California bill sought to adopt.

Additionally, the legislation aimed to enshrine in law the eligibility of workers locked out by their employers during labor disputes.

The bill's effective date was scheduled for January, making it unlikely that the Writers Guild of America (WGA) and SAG-AFTRA would have benefited unless their strikes extended into the new year.

However, the recent WGA agreement that concluded the strike and renewed SAG-AFTRA negotiations make it plausible that the labor disputes will have ended by then.

Support for the bill came from various unions and guilds, including Actors Equity and IATSE, while business groups, such as the state Chamber of Commerce, opposed it.

California Gov. Gavin Newsom, although remaining publicly neutral on Hollywood labor disputes, expressed his willingness to engage in negotiations if requested, maintaining contact with representatives from both sides.

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Written by: Bert Hoover

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