UNITED STATES: On Saturday, California Governor Gavin Newsom vetoed a bill that sought to provide unemployment benefits to striking workers and had garnered significant backing from labour unions and fellow Democrats in the state legislature.
The bill, SB799, aimed to grant workers eligibility for unemployment benefits following a two-week strike.
In his veto message, Newsom highlighted the state’s unemployment trust fund, which is already close to $20 billion in debt.
He explained his veto in a message, saying, “Now is not the time to increase costs or incur this sizable debt.”
Newsom’s decision to veto the bill is likely to create dissatisfaction among his supporters in organised labour, many of whom advocated for the legislation.
Those in favour of the measure contended that California workers should have the ability to tap into the unemployment funds they’ve funded through taxes when they participate in strikes.
On the other side, business groups argued that California should distinguish between workers who voluntarily go on strike and those who are laid off due to different circumstances. They emphasised that California’s unemployment debt has led to increased taxes on businesses.
In September, the Democratic-majority legislature approved the bill amid several prominent strikes. Notably, Hollywood writers concluded their nearly five-month strike just 12 days later, while Hollywood actors continued their strike efforts. Additionally, hotel workers in Southern California were also on strike.
This bill would have extended eligibility for unemployment benefits to workers engaged in strikes lasting at least two weeks. Most states, excluding New York and New Jersey, do not provide unemployment benefits to striking workers.
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