The Act would repeal the law that denies benefits to a person who is unemployed due to an active labor dispute.

Provides that an individual otherwise eligible for unemployment insurance benefits is not disqualified for any week that the individual’s unemployment is due to a labor dispute in active progress at the individual’s place of employment. Declares an emergency, effective on passage.

Small business owner taxes could be increased if SB 916 passes – even if they aren’t involve in a strike.

According to the Oregon Employment Department, “Unemployment insurance provides money to people who have lost their jobs or have had their hours reduced through no fault of their own. Weekly payments of unemployment insurance benefits support people as they actively look for work.”

Allowing UI benefits for workers who voluntarily leave their jobs to go on strike would not only add cost to the system, but it would also tip the balance in favor of unions during contract negotiations.

Unions would no longer need to collect strike-fund contributions from members, which has been common practice for decades. Instead, SB 916 would unfairly shift this obligation to employers subsidizing union work stoppages – paying workers to go on strike against them.

In Oregon, employers pay 100% of unemployment taxes. Public employers, including cities, counties and school districts, typically reimburse the state for benefits paid to former employees – dollar for dollar. The increased costs of providing unemployment benefits for workers on strike would be spread among all employers and local taxpayers.

There are many issues and unintended consequences from this legislation but to name a few:

1. This policy will encourage longer strike times – putting the economy and residents in the crosshairs – we all saw the unintended consequences of COVID-19 unemployment misuse 
2. Employers will be paying for voluntary leave – currently, unemployment pay is for “involuntary” work leave, this forces employers to pay 100% of strikers voluntary work leave – a misuse of the current fund 
3. Will affect government services – this policy also affects government agencies, costing taxpayers millions and putting services such as education, social work, healthcare and more into jeopardy
4. This strains an already expensive, delicate system – Oregon businesses already pay some of the highest unemployment insurance in the country — not only will this further strain our business community, but it will also strain the unemployment fund for political purposes – taking it from the people who really need it 
5. This bill will make things more expensive and less accessible to Oregonians – experts state this will result in price increases and potential business closures for stores, pharmacies, gas stations, delivery services, grocery stores and more – affecting our most vulnerable community members 

EMAIL COMMITTEE

Sen.KathleenTaylor@OregonLegislature.gov
Sen.DanielBonham@OregonLegislature.gov
Sen.Cedric Hayden@OregonLegislature.gov
Sen.KhanhPham@OregonLegislature.gov
Sen.AaronWods@OregonLegislature.gov