SENATE BILL REPORT

SB 6243

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

Senate Hearing Date(s):January 18, 1988; January 22, 1988

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, Deccio, McMullen, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Bill Lynch (786-7427)

                  March 2, 1988

AS PASSED SENATE, FEBRUARY 1, 1988

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:  (1) the employees' collective bargaining agent notified the employer that the employees are willing to return to work at the employer's last contract offer until a new agreement could be reached, unless the last offer constitutes a substantial deterioration of the terms and conditions of employment; and (2) 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 lock out 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 14, 1988

Effective Date:The bill declares an emergency and takes effect on the Sunday following the day on which the governor signs the bill.

Senate Committee - Testified: Graeme Sackrisen, Dept. Employment Security; Bob Dilger, Bldg. & Construction Trades Council; Clif Finch, Assn. of Washington Business; Mike Ryherd, Teamsters; Jan Gee, Washington Retail Council, Angelo Bruscas, Associated Grocers; Richard King, Allied Employers; Gary Smith, Independent Business Assn.; Brent Knott, Assn. of Western Pulp and Paper Workers; Bill Johnston, United Food and Commercial Workers

HOUSE AMENDMENTS:

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.