California Governor Gavin Newsom has vetoed a bill that would have made striking workers eligible for unemployment benefits. The bill was inspired by high-profile work stoppages in the Hollywood and hotel industries. Newsom, a Democrat, cited the state’s already massive debt in the unemployment benefits fund as the reason for his veto. The fund is currently over $18 billion in debt, and Newsom argued that increasing costs or incurring further debt would not be wise at this time.
Labor unions and workers’ rights advocates have criticized the veto, claiming that it favors corporations and CEOs over workers’ rights. They argue that the number of workers on strike for more than two weeks is small and would not significantly impact the state’s unemployment trust fund. The bill would have allowed workers on strike for at least two weeks to receive unemployment benefits from the state, which can amount to $450 per week. However, Newsom’s administration has stated that the fund is already unable to collect enough money to pay all the owed benefits, as the tax businesses pay on each worker has not changed since 1984 and is the lowest allowed under federal law.
The vetoed legislation was an attempt by Democratic state lawmakers to support striking hotel workers in Southern California and Hollywood actors and writers. Although the writers’ strike ended in September, the strikes in the other industries are ongoing, leaving many workers without pay for months. The Newsom administration predicts that benefit payments will exceed tax collections by $1.1 billion this year, marking the first time this has happened during a period of job growth. Despite the veto, lawmakers could still try to pass the law, although it is rare for a governor’s veto to be overruled in California.