Oppose Senate Bill 5041: It would exacerbate challenges for Washington’s workers and businesses, undermine the UI system’s integrity…

Lakewood Chamber of Commerce
Board of Directors Policy Position
Opposes SB 5041 – Unemployment Benefits to Striking Workers
January 28, 2025

Senate Bill (SB) 5041, which would extend unemployment benefits to striking workers in Washington state, is opposed by the Lakewood Chamber Board of Directors, as well as other business groups and employer advocates. 

SB 5041 poses significant risks to workers, employers, and the broader state economy. While it purports to support workers, its unintended consequences far outweigh any perceived benefits, making it harmful for unionized and non-union employees, businesses, and consumers alike.

Key Concerns:

1. Economic Harm to Workers and Employers:
Strikes often have cascading effects on both workers and employers. For example, following a recent Boeing machinist strike, layoffs were partially attributed to the financial strain of the strike itself. By incentivizing strikes through unemployment insurance (UI) benefits, this bill risks amplifying such consequences, reducing job stability and economic security for workers.

2. Threat to Washington’s Business Climate:
Washington is already ranked as one of the least business-friendly states (46th in a recent survey). Policies like this exacerbate the challenge of running a business, potentially driving employers out of the state. Fewer businesses mean fewer jobs and diminished economic opportunity for workers.

3. Jeopardizing the Unemployment Insurance Fund:
UI benefits are designed for workers who lose their jobs through no fault of their own and are actively seeking new employment. Redirecting these funds to support striking workers undermines the system’s purpose and jeopardizes its stability. This is particularly concerning given the state’s reliance on worker-driven revenue for funding essential programs.

4. Unintended Impact on Public Services:
The bill does not explicitly prevent UI funds from being used by striking public employees. This oversight could lead to increased disruption in critical public services, such as education, potentially encouraging strikes that contribute to additional learning losses and harm to students and families.

Better Alternatives:
* Unions already collect dues from members, which can be used to create strike funds without burdening the state UI system.
* Policymakers should explore mechanisms to reduce strikes, such as promoting dialogue and collaboration between workers and employers, rather than subsidizing work stoppages.
* Strike penalties for public unions could deter disruptions to essential services, preserving stability for workers and the public alike.

Conclusion:
Senate Bill 5041 would exacerbate challenges for Washington’s workers and businesses, undermine the UI system’s integrity, and worsen the state’s economic competitiveness. Protecting work options, job stability, and a sustainable business environment is critical. We strongly urge policymakers to reject this harmful proposal.