Feb. 6, 2025
What happened: On Feb. 6, representatives of several business groups testified before the Senate Labor and Business Committee in opposition to SB 916, which would extend unemployment insurance benefits to striking workers (see video). The hearing on the bill will continue on Tuesday, Feb. 11, when OBI will testify. OBI has submitted written testimony, which you can read by following the link to the right.
The problem: The unemployment insurance system is built to protect people who lose work involuntarily. SB 916 would extend those benefits to people who choose to walk off the job. This would increase strain on the state’s unemployment insurance system, which is funded by an employer-paid tax that was the nation’s third highest in 2023. It also would reduce the buying power of Oregonians’ tax dollars, as agencies must pay back unemployment benefits on a dollar-per-dollar basis. Finally, making unemployment benefits available to striking workers would provide an incentive to lengthen strikes, increasing pressure on struggling employers.
What other states do: Only New York and New Jersey make unemployment benefits available for striking workers. Coincidentally, those are the only states deemed less business-friendly than Oregon in CNBC’s 2024 America’s Top States for Business rankings.
The consequences: Passing SB 916 would make Oregon less appealing for business investment, which is needed to create jobs and generate revenue needed by state and local governments.
What’s next: The hearing on SB 916 will resume on Tuesday, Feb. 11, when OBI will testify.