California Lawmakers Advance Proposal to Offer Unemployment Insurance to Striking Workers

California lawmakers advanced a bill on Wednesday that would allow workers who go on strike for more than two weeks to receive unemployment insurance benefits.

The various unions supporting SB 1116, introduced by state Sen. Anthony Portantino (D-Burbank), say that walking off the job is a last resort for workers, who forgo their regular pay and often struggle to afford basic necessities as they fight for better wages.

However, the 4-to-1 vote by the state Senate’s Labor, Public Employment and Retirement Committee to move the bill forward followed opposition testimony from a long line of business group representatives.

“Striking is a negotiating tactic and, of course, a difficult one, and it’s hard on all parties involved. But we view it as fundamentally different from being unemployed,” Robert Moutrie, a senior policy advocate with the California Chamber of Commerce, told the committee.

He added that employers, who finance unemployment benefits through a payroll tax, worry they’d be forced to “subsidize” striking workers and pay for additional costs.

Last year, California saw dozens of strikes, including at least 15 that involved 1,000 or more workers, according to the U.S. Bureau of Labor Statistics.

The 148-day, high-profile Hollywood screenwriters’ walkout last year inspired a statewide proposal to offer striking workers up to $450 a week.

Last year, Gov. Gavin Newsom vetoed that legislation, citing concerns that California’s Unemployment Insurance Fund is about $21 billion in debt after the state borrowed from the federal government to keep the program solvent during the pandemic.

Meagan Subers, a lobbyist on behalf of the Writers Guild of America West, said striking screenwriters depended on second and third jobs, as well as donations, to pay for food, gas and rent.

“Corporations rely on the expectation that striking workers will lack the resources to hold out for better wages, fair compensation and job security,” Subers said. “And their strategy is often to wait workers out until they have no choice. One studio executive said the employers’ strategy was to allow things to drag on until union members start losing their apartments and losing their houses.”

In testimony before the committee on Wednesday, supporters of the new bill argued the state should address the fund’s long-standing insolvency issues, but also noted that the number of California workers involved in extended trade disputes who would be actually be eligible for the proposed benefits is relatively small.

“If you look at other states who offer unemployment insurance for striking workers, we know that it’s doable,” said Lorena Gonzalez, who heads the California Labor Federation, referring to New York and New Jersey, which offer such benefits. “California should be on the forefront of not penalizing workers who go on strike.”