SENATE BILL REPORT

ESHB 445

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Wang, Jacobsen, Sayan, R. King, Lux, Wineberry, Brekke, Fisher, Niemi, Leonard, P. King, Dellwo, Cole, Basich, Heavey, Unsoeld and Todd)

Authorizing unemployment compensation for certain locked-out workers.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 10, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Tanner, Vognild, Williams, Wojahn.

Senate Staff:Mark McDermott (786-7429)

                  February 11, 1987

AS PASSED SECOND READING, FEBRUARY 11, 1987

BACKGROUND:

An employee who is unemployed due to a stoppage of work that exists because of a labor dispute at the employee's workplace is disqualified from receiving unemployment compensation benefits.  The Washington State Supreme Court has held that the term "labor dispute" includes the lockout of employees by an employer when the lockout results from a controversy over wages, hours, work requirements, fringe benefits, working conditions or other terms of employment.

The disqualification from benefits does not apply if (1) the employee is not participating in, financing, or directly interested in the labor dispute that caused the stoppage of work; and (2) the employee does not belong to a grade or class of workers that were working immediately prior to the start of the labor dispute and are participating in, financing, or directly interested in the dispute.

SUMMARY:

An employee is not disqualified from unemployment compensation benefits if:  (a) the unemployment is due to a lockout by the employer unless the lockout is called by members of a multi-employer bargaining unit after one employer has been struck as a result of the multi-employer bargaining process; (b) the employee's collective bargaining agent must have notified the employer that the employees are willing to return to work, pending the ratification of a new collective bargaining agreement, under the terms of the employer's last offer prior to the lockout.  However, the employees are not required to be willing to return to work if the last offer represented a substantial deterioration of the terms and conditions of employment that existed prior to the expiration of the last collective bargaining agreement; and (c) the individual has been locked out for four or more weeks.

Benefits shall be paid beginning with the fourth week of the lockout.

Benefits paid to an employee due to a nondisqualifying lockout for weeks of unemployment prior to the act's effective date are not charged to the experience rating account of any base year employer.

The Employment Security Department is directed to report the number of claimants receiving benefits and the total amount of benefits paid under the act to the Commerce and Labor Committees of the Senate and House of Representatives by January 1, 1989.

Retrospective application to November 16, 1986, is specified.

The bill has a termination date of December 27, 1987.

Fiscal Note:      requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: No one