UI Benefits for Striking Workers (S.4573/A.6592) | 2019

June 10th, 2019

AN ACT to amend the labor law, in relation to decreasing the length of the suspension period applicable to certain striking workers who seek to obtain unemployment insurance benefits

S.4573 (Kennedy) / A.6592 (Ryan)

MEMORANDUM IN OPPOSITION

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York opposes this legislation.

This legislation reduces the suspension period for unemployment benefits for striking workers from seven weeks to one week. New York is one of only three states that provide this benefit to striking workers, and the only state that does so after a week’s waiting period.

This proposal represents and new and significant burden on New York’s Unemployment Insurance Fund, which is funded by New York employers. This policy would also serve as a means of forcing employers to subsidize the entire cost of a strike. In many instances unions themselves are required to provide strike pay to their members. This proposal would shift those costs to employers in the form of rising unemployment insurance premiums.

Shifting the cost of strikes to employers, and significantly reducing the suspension periods for striking workers to receive unemployment benefits will lead to more union strikes and increase their duration. This increased threat of work stoppages will add significant burdens to New York businesses.

Unshackle Upstate has consistently advocated for policies that will make New York a better place to do business. If enacted, this legislation would certainly make New York less competitive, lead to more strike and hurt our state’s economy.

For these reasons Unshackle Upstate opposes the enactment of this legislation.