FINAL BILL REPORT

SB 6243

                                   C 83 L 88

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.

Senate Committee on Economic Development & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Prior to 1987, individuals were disqualified from receiving unemployment compensation benefits if they were unemployed due to a stoppage of work because of a labor dispute.  The Legislature placed an exception in the law in 1987 to allow individuals who were locked out by their employer to receive unemployment compensation benefits if the employees' collective bargaining agent notified the employer that the employees were willing to return to work at the employer's last contract offer until a new agreement could be reached, unless the last offer constituted a substantial deterioration of the terms and conditions of employment; and the individuals were locked out for four or more weeks.  Employees who are members of a multi-employer bargaining unit who were locked out because of a whipsaw strike were ineligible for benefits. This statutory exception expired on December 27, 1987.

The Joint Select Committee on Labor-Management Relations recommends this measure.

SUMMARY:

Employees who are locked out by their employer are eligible for unemployment compensation benefits, 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.  An individual who is unemployed due to a strike is disqualified from receiving unemployment benefits.

The stoppage of work requirement for eligibility purposes is eliminated.  An individual is not disqualified from receiving unemployment compensation once the strike or lockout is terminated.

The Department of Employment Security is directed to study the impact of the lockout and strike provisions on the number of unemployment claimants, the amount of benefits paid, and the type, frequency, duration, and outcome of labor disputes.  The department must specifically address the impact of the multi-employer exclusion in their study.

The department must periodically meet with labor and management representatives during the course of its study.

The department must report its findings to the governor, the Senate Economic Development and Labor Committee, and the House Commerce and Labor Committee by the beginning of the 1990 session.

VOTES ON FINAL PASSAGE:

      Senate    47     0

      House 97   0 (House amended)

      Senate    46     0 (Senate concurred)

EFFECTIVE:March 20, 1988