California Governor Gavin Newsom has vetoed a bill that would have provided unemployment benefits to striking workers. The bill had garnered support from labor unions and fellow Democrats in the state legislature. Newsom cited the state’s already significant debt of nearly $20 billion in the unemployment trust fund as the reason for his decision. The bill would have made striking workers eligible for unemployment checks after being on strike for at least two weeks, a benefit that is currently only offered by New York and New Jersey.

The Democratic-majority legislature passed the bill in September amid high-profile strikes, including the Hollywood writers’ walkout, which was resolved 12 days later. However, Hollywood actors and Southern California hotel workers remain on strike. Newsom’s veto comes as the state grapples with the financial burden of the unemployment trust fund, making it impractical to increase costs and incur further debt at this time.

The decision to veto the bill highlights the ongoing debate around providing unemployment benefits to striking workers. While the bill had strong support from labor unions and Democrats, Newsom’s concern about the state’s mounting debt ultimately led to its rejection. As California continues to face economic challenges, the issue of unemployment benefits for striking workers remains unresolved, with the state deviating from the limited number of states that currently offer such benefits.

Source link