SACRAMENTO, Calif. (AP) — California won't be giving unemployment checks to workers on strike, with Democratic Gov. Gavin Newsom vetoing a bill Saturday that had been inspired by high-profile work stoppages in Hollywood and the hotel industry.
Newsom, a Democrat, says he supports workers and often benefits from campaign contributions from labor unions. But he said he vetoed this bill because the fund the state uses to pay unemployment benefits will be nearly $20 billion in debt by the end of the year.The fund the state uses to pay unemployment benefits is already more than $18 billion in debt.
“That money is going to corner stores, to restaurants, to caterers, to nail salons, to the small businesses that are also struggling along with workers who are on strike,” Sarah Flocks, legislative and strategic campaign director for the California Labor Federation, told lawmakers during a public hearing earlier this month.
Labor unions had argued the amount of workers on strike for more than two weeks is so small it would not have had a significant impact on the state’s unemployment trust fund. Of the 56 strikes in California over the past decade, only two lasted longer than two weeks, according to Democratic state Sen. Anthony Portantino, the author of the bill.
Beyond the debt, the Newsom administration has said the fund is not collecting enough money to pay all of the benefits owed. The money comes from a tax businesses must pay on each worker. But that tax only applies to the first $7,000 of workers' wages, a figure that has not changed since 1984 and is the lowest amount allowed under federal law.
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