Governor Newsom Vetoes Bill to Pay Unemployment Benefits to Striking Workers

California Governor Gavin Newsom this Saturday vetoed a bill that would provide unemployment benefits to striking workers.a proposal inspired by high-profile shutdowns in Hollywood and the hospitality industry.

Newsom has voiced his support for workers and acknowledged that he often benefits from campaign contributions provided by unions. However, the country’s president said that the bill had to be vetoed because the fund the state uses to pay unemployment benefits would be about $20 billion in debt by the end of the year..

At the moment, The fund the state uses to pay unemployment benefits is more than $18 billion in debt..

The fund ran out of resources and had to turn to the federal government for a loan during the pandemic, when Governor Newsom ordered most businesses to close, leading to a massive increase in unemployment.

In addition, the unemployment fund fell victim to a huge number of scams that cost California billions of dollars.

Unions have looked at the benefits unemployment assistance leaves in the economy as workers They can continue to spend money and support local businesses despite the strike..

The bill contains a proposal for Workers who had been on strike for at least two weeks received unemployment checks of about $450 per week from the state of California..

Usually, Only workers who lose their jobs through no fault of their own are eligible to receive benefits..

Some union workers called Newsom’s determination blow to union members currently on strike in California.

“The fact that Newsom vetoed this decision in California, and we are not going to benefit from the strike like workers in New York and New Jersey, will not weaken the resolve of those who are now on strike,” said Taylor Orsi, who hosted participation in the writers’ strike. Guild of America and SAG-AFTRA protests in Hollywood.

According to the trade unions, the number of workers striking for more than two weeks was so small that it would not have a significant impact on the state unemployment fund.

Democratic state Sen. Anthony Portantino, the bill’s sponsor, said Of the 56 strikes that occurred in California over the past decade, only two lasted more than two weeks..

The bill was an attempt by state legislators support Southern California hotel workers and Hollywood actors who have been on strike for months without receiving any pay.

Last week, the Hollywood Writers Union reached a contractual agreement with production companies after a nearly five-month hiatus.

Governor Newsom’s administration announced this. The unemployment fund does not collect enough money to cover all benefits due.

The resources come from a tax that companies must pay for each employee. However, This tax applies only to the first $7,000 of workers’ salaries, a figure that has not changed since 1984 and is the lowest amount allowed by federal law..

Meanwhile, unemployment benefits increased. The Newsom administration projects benefit payments will exceed tax revenues by $1.1 billion in 2023.This is the first time this has happened during a period of job growth, according to the nonpartisan Office of the Legislative Analyst.

There’s a chance lawmakers will try to pass the legislation anyway, but it’s been decades since a California governor’s veto was overridden.