Unemployment for Striking Workers Bill Draws Opposition
A recycled bill allowing striking Connecticut workers to qualify for unemployment benefits is drawing opposition from a number of sectors.
HB 5164, which mirrors failed legislation from previous General Assembly sessions, was among the bills discussed at a Feb. 22 Labor and Public Employees Committee hearing.
The proposal allows workers who have been on strike for 14 days to collect unemployment benefits, when eligibility is usually reserved for those who become unemployed through no fault of their own.
CBIA’s Ashley Zane told committee members that unemployment benefit eligibility also requires that an individual “be available for and seeking work.”
“The state’s unemployment compensation program is an important economic safety net that has proven critical in recent years,” Zane said.
“This system is funded exclusively by employers for the purposes of ensuring workers that become unemployed through no fault of their own receive compensation while seeking new employment.”
‘Unprecedented Policy Change’
Zane was one of a number of people who testified against the bill, which is a top priority for organized labor this session.
National Federation of Independent Business state director Andy Markowski told the committee the bill “would result in an unprecedented policy change that goes against one of the major tenets of the state’s unemployment benefits system.”
“It is important to note that recent bipartisan legislation passed in 2021 accomplished balanced, systemic reforms to the state’s unemployment system moving forward,” he said.
“Substantial policy changes such as those contemplated in this bill could destabilize the fund.”
NFIB’s Andy Markowski
“Substantial policy changes such as those contemplated in this bill could destabilize the fund and throw off the balance achieved through that prior legislation, potentially resulting in a greater burden on employers, including most small business owners.”
Kathy Saint, president of Bridgeport manufacturer Schwerdtle, Inc., told committee members the unemployment system was “a crucial safety net that must be preserved for qualified individuals in need.”
“The Unemployment Trust Fund should not be treated as a source of revenue to fund lawmakers’ policy goals or create an unequal playing field in disputes between employers and employees,” she said.
‘Skeptical’
Gov. Ned Lamont later told reporters that he was “skeptical” about the bill.
“I’m a strong supporter of labor and the right to organize and making sure that people have fair representation,” he said.
“And I’m also somebody that supports small business. And I don’t want to put my thumb on that scale.”
Last year, Lamont’s California counterpart, Gov. Gavin Newsome, vetoed similar legislation.
“Any expansion of eligibility for UI benefits could increase California’s outstanding federal UI debt … and could jeopardize California’s Benefit Cost Ratio add-on waiver application, significantly increasing taxes on employers,” Newsome wrote in his veto letter.
New York and New Jersey are the only states that offer unemployment benefits to striking workers.
For more information, contact CBIA’s Ashley Zane (860.244.1169) | @AshleyZane9.
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