HOUSE BILL REPORT

SB 6243

As Amended by the House

BYSenators Smitherman, Lee, Warnke, Bender, Talmadge, Vognild, Metcalf, Hansen, Stratton, West and Fleming; by request of Joint Select Committee on Labor-Management Relations

Revising labor dispute disqualification for unemployment compensation.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (10)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisher, Jones, R. King, Patrick, Sanders, Sayan, C. Smith and Walker.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE MARCH 1, 1988

BACKGROUND:

Since its enactment in 1937, Washington's unemployment compensation law has contained a labor dispute disqualification. Under this law, if there is a stoppage of work at the employee's workplace because of a labor dispute, the unemployed worker is disqualified from receiving unemployment compensation benefits.  The disqualification does not apply, however, if the employee and the class of workers to which the employee belongs are not directly interested in or participating in the dispute.  Once an employee has been disqualified, the employee remains disqualified from benefits until the stoppage of work has ended and the workplace is operating at substantially normal production.  In some cases, the workplace may not reach normal operating levels for some period of time after the labor dispute has been settled.

During the 1987 regular legislative session, an exception to the disqualification provision was enacted.  Workers who were locked out by their employer during a labor dispute were eligible for benefits if (1) the workers were willing to return to work under the employer's last offer (unless the offer was a substantial deterioration of working conditions); and (2) a four- week waiting period had elapsed.  This exception did not apply if a lockout by a multi-employer bargaining unit resulted from a strike of one of the employer members.  The lockout provision expired December 27, 1987.

The 1987 legislature also created a Joint Select Committee on Labor-Management Relations to study, among other issues, the labor dispute disqualification. The joint select committee recommended that the disqualification provision be revised to deny benefits during strikes and allow benefits during lockouts, except for lockouts that resulted from a strike of one of member of a multi-employer bargaining unit.

SUMMARY:

The disqualification for unemployment benefits during a labor dispute applies only during a strike or, if the employer is a member of a multi-employer bargaining unit, during a lockout by the employer that occurs after one member of the multi- employer bargaining unit has been struck by its employees as a result of the multi-employer bargaining process.  There is no disqualification if an employee and the class of employees to which the employee belongs are not participating in or financing the strike or lockout.  Any disqualification from benefits imposed under these circumstances will end when the strike or lockout is terminated.

A study analyzing the impact of the act's disqualification provisions will be conducted by the Employment Security Department.  In conducting the study, the department is directed to convene meetings of business and labor representatives.  The results of the study must be reported to the governor and legislature by the start of the 1990 regular session.

Fiscal Note:      Requested February 8, 1988.

Effective Date:The bill contains an emergency clause and takes effect on the Sunday following the Governor's signing of the bill.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.