The Washington State Senate has approved SB 5041, a bill that threatens the integrity of our unemployment insurance system by granting benefits to striking workers for up to twelve weeks. This legislation would disrupt labor negotiations, tipping the scales for prolonged strikes, and severe financial consequences for our state and the UI trust fund.
The right to strike is respected but should be a last resort, with labor and management negotiating in good faith. UI benefits during a labor dispute unfairly shift the balance.
Retailers and the business community remain concerned that this bill will create a conformity issue with the federal UI system because unemployment is meant for workers who lose their jobs through no fault of their own.
Additionally, public employers may be forced to cover benefits for workers participating in illegal strikes unless a court formally declares the strike unlawful.
Lawmakers should be concerned that the bill’s fiscal note fails to consider worst-case scenarios for extended strikes and excludes data from significant strikes like the recent Boeing and Teamsters concrete strike. The estimated cost of this recent 7-week strike would have cost the trust fund $162 million. An extended strike would have had an even greater impact on the trust fund and the economy.
The bill now moves to the House, where a similar proposal allowing four weeks of benefits passed in the 2024 session but ultimately failed in the Senate.
