Oregon bill providing unemployment pay for striking workers signed into law by governor

SALEM, Ore. (AP) — Democratic Oregon Gov. Tina Kotek on Tuesday signed into law a bill that provides unemployment benefits to striking workers, following neighboring Washington state in adopting measures spurred by recent walkouts by Boeing factory workers, hospital nurses and teachers in the Pacific Northwest.

Oregon’s measure makes it the first state to provide pay for picketing public employees — who aren’t allowed to strike in most states, let alone receive benefits for it. It makes striking workers eligible to collect unemployment benefits after two weeks, with benefits capped at 10 weeks.

Only three other states — New York, New Jersey and most recently Washington state — give striking workers unemployment benefits. Washington’s bill, which passed in April, pays striking private sector workers for up to six weeks, starting after at least two weeks on the line.

Democratic Connecticut Gov. Ned Lamont on Monday vetoed a bill that would provide financial help for striking workers, after vetoing a similar measure last year.

The final passage for Oregon’s bill proved tumultuous. It first passed the state Senate in March and then passed the state House earlier this month. But a majority of senators did not concur with amendments added by the House, which sent the measure to a conference committee to resolve the differences between the two bills. It ultimately received final approval following a compromise on the 10-week benefits cap.

The bill sparked debate among lawmakers as well as constituents, with over 1,000 letters of written testimony submitted.

Supporters said it would level the playing field between workers and wealthy corporations that can wait until union strike funds run out to pressure employees under financial distress to accept deals.

Opponents said it could incentivize strikes and hurt employers, particularly public employers such as school districts. Private employers pay into the state’s unemployment insurance trust fund through a payroll tax, but many public employers do not, meaning they would have to reimburse the fund for any payments made to their workers.

In response to those concerns, the bill requires school districts to deduct the benefits received by an employee from their future wages.

Some argued it wouldn’t cost public employers more than what they have already budgeted for salaries, as workers aren’t paid when they are on strike. Also, those receiving unemployment benefits get at most 65% of their weekly pay, and benefit amounts are capped, according to documents presented to lawmakers by employment department officials.

Oregon has seen two large strikes in recent years: Thousands of nurses and dozens of doctors at Providence’s eight Oregon hospitals were on strike for six weeks earlier this year, while a 2023 walkout of Portland Public Schools teachers shuttered schools for over three weeks in the state’s largest district.