Democrats from California are anticipated to suggest providing unemployment compensation to striking workers.
Language slated for distribution in the next few days or weeks would grant striking workers access to California’s $18 billion in debt unemployment insurance program. The decision was made in the midst of historic strikes by actors and screenwriters, which forced several motion pictures and television programs to suspend production.
According to Rob Moutrie, a policy advocate with the California Chamber of Commerce, who opposes the proposal, it would enable those who are on strike, are not seeking a job, and were not fired for no reason of their own to file for unemployment benefits as if they were actually unemployed.
Moutrie thinks labor advocates are taking advantage of the strike to forward this policy idea that they had intended to advance for years.
When the unemployment insurance program had a surplus in 2019, former state assemblywoman Lorena Gonzalez proposed similar legislation, but it was not passed.
California’s Unemployment Program Woes: Borrowed Billions, Bogus Claims, and Proposed Jobless Legislation
The California Republican went on to say that his state made such a mess of running its unemployment program that it borrowed over $20 billion from the federal government before defaulting on it. During the COVID-19 pandemic, millions of bogus jobless claims were given out in the Golden State, according to California officials.
Democratic Assembly Members Laura Friedman and Chris Holden are set to co-author the jobless legislation, which will be submitted by Anthony Portantino, the chair of the Senate Appropriations Committee, according to Politico.
According to Moutrie, if the measure becomes law, companies will probably be required to pay for the strikers.
Employers pay per-employee taxes to fund the unemployment insurance fund and pay benefits when they are requested. Therefore, this measure would essentially be an indirect tax on every company in California that would be used to support the strikers.
It would take money from the unemployment insurance system. As stated by Moutrie, the law presents a serious issue with justice for businesses that don’t now have or have never had a strike involving their workers.
Source: Fox News