California Governor Rejects Striking Workers’ Unemployment Benefits Bill
California Governor Gavin Newsom has turned down a bill that aimed to provide unemployment benefits to striking workers. This proposal had strong support from labor unions and his fellow Democrats in the state legislature.
In explaining his decision to veto the bill, Newsom pointed out that the state’s unemployment trust fund is already facing a substantial debt of nearly $20 billion. He stressed that the current economic situation is not favorable for increasing costs or accumulating more significant debt.
The bill, passed by the Democratic-majority legislature in September, came about during a period of notable strikes. While Hollywood writers concluded their nearly five-month strike a mere 12 days later, Hollywood actors are still on strike, as are hotel workers in Southern California.
Had the bill been approved, it would have made workers on strike for at least two weeks eligible to receive unemployment benefits. It’s worth noting that the majority of states, except for New York and New Jersey, do not provide unemployment benefits to striking workers.
Governor Newsom’s decision to veto the bill underscores the challenging financial situation faced by the state of California.