North San Diego Business Chamber Expresses Opposition to SB799, Unemployment Insurance; Trade Disputes; Eligibility for Benefits
September 8, 2023
Contact: Chris Thorne
Office (858) 487 1767
Direct: (858) 217-8970
Email: chris@sdbusinesschamber.com
FOR IMMEDIATE RELEASE
North San Diego Business Chamber Expresses Opposition to SB799, Unemployment Insurance; Trade Disputes; Eligibility for Benefits
September 8, 2023
San Diego – On Friday, September 8th, the North San Diego Business Chamber released the attached letter of OPPOSITION to Senate Bill No. 799, Unemployment insurance: trade disputes: eligibility for benefits, on behalf of the more than 800 large, small, and independent businesses which are Chamber members across San Diego County and beyond.
September 8, 2023
RE: Strong Opposition to Senate Bill No. 799
Dear Members of the Assembly Appropriations Committee,
I am writing on behalf of the North San Diego Business Chamber, representing over 800 business members across San Diego County, to express our deep concern and opposition to Senate Bill No. 799, Unemployment insurance: trade disputes: eligibility for benefits. Our members represent more than 350,000 employees, ranging from global businesses with 5,000+ headcount, to minority owned small business and sole proprietorships. Across this spectrum, there is broad concern for the potential impacts based on the unanswered questions and unintended consequences which SB 799 presents. It is our strong intent to convey that, in its current form, SB 799 risks the jobs of hard-working Californians, and the viability of businesses who strive daily to provide services and opportunity to our community.
While we acknowledge and support the importance of worker rights and labor negotiations, SB 799 raises significant concerns for businesses in our community, throughout the state, and the threatens the long-term viability of California's Unemployment Insurance (UI) program.
First, I would like to emphasize that the North San Diego Business Chamber and its members hold worker rights and labor negotiations in the utmost regard. We wholeheartedly believe employees deserve appropriate compensation for their invaluable contributions to society and our communities.
However, we have significant reservations about the unintended consequences that this proposed bill could have on business and our communities. Our opposition to SB 799 is grounded in several key concerns, including the increased burden on employers and placement of the fingers of government influence on the scales of labor negotiation by incentivizing work stoppages as employer subsidized negotiation tools. Further, as currently proposed, SB 799 leaves unanswered significant questions regarding defined qualified labor disputes, deconfliction relief during concurrent payment from organized labor “strike funds”, or employer/employee requirements upon “make whole” agreements at dispute resolution, among many other questions. These are questions of legislative value and should not be left to agency rulemaking.
This shift in the burden of supporting striking workers places an undue financial strain on employers who may not be involved in the labor disputes. Increased employer burden will also be seen through employer tax increases on employers, specifically small businesses which comprise around 96% of all San Diego County Businesses, many of whom are still grappling with economic challenges.
Further, as a regional Business Chamber, it is our responsibility to advocate for strong safety nets in support of our workforce. Since the enactment of the Unemployment Reserves Act of 1936, signed by Governor Frank Merriam, the California Unemployment Insurance Fund has been one of the strongest worker safety nets in the Nation. Currently, California's UI program is facing a historic debt of approximately $18 billion due to the COVID-19 pandemic. SB 799's provisions could add further debt to this already strained UI Fund, potentially worsening the financial stability of the program and leading to continued tax increases on employers until at least 2032, and the potential need for long term reconstruction of the plan, placing both employers and employees at risk.
Finally, we share with our members a grave concern regarding potential significant conflicts with Federal UI eligibility requirements which stipulate that claimants must be "able to work, available to work, and actively seek work." Striking workers, who still have jobs and have chosen not to work as a negotiation tactic, present a unique situation that raises potential federal compliance issues. If the Federal Department of Labor determines California's program is non-compliant, SB 799 invites costly litigation and could result in a catastrophic loss of federal benefits for California's UI program.
In conclusion, while we understand the importance of addressing the needs of workers involved in labor disputes, SB 799, as currently drafted, poses significant challenges for employers, the UI program's financial sustainability, and the potential risk of non-compliance with federal law. We respectfully urge you to oppose this bill and consider alternative approaches that strike a fair balance between worker rights and employer responsibilities.
Thank you for considering our perspective on this matter. We appreciate your commitment to serving our community and would welcome the opportunity to further discuss our concerns. Please do not hesitate to contact me directly at chris@sdbusinesschamber.com or (858) 217-8970.
Respectfully,
Chris Thorne CEO (Chief Executive Officer)
North San Diego Business Chamber
“Today, the North San Diego Business Chamber stands in strong opposition to the proposed legislation,” said North San Diego Business Chamber CEO Chris Thorne. “In its current form, SB 799 risks the jobs of hard-working Californians and threatens the viability of businesses who provide services and opportunities to our community.” Thorne went on to mention while the North San Diego Business Chamber wholeheartedly believes in worker rights and labor negotiations, it has significant reservations about the unintended consequences this proposed bill could have on businesses, especially in San Diego County and throughout the state.
“We urge a balanced approach that safeguards both workers and employers,” stated Thorne. SB799 is currently scheduled for California Legislature Floor Vote on Monday, September 11th.
For further information, or for direct engagement related to this topic please contact Chris Thorne, CEO, North San Diego Business Chamber, at chris@sdbusinesschamber.com, (858) 217-8970.
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About North San Diego Business Chamber:
North San Diego Business Chamber is a regional chamber of commerce located in San Diego County, California. We serve as a networking and advocacy organization for businesses in the region, providing resources and support to help them grow and succeed. North San Diego Business Chamber is the only 5-Star US Chamber of Commerce accredited organization in San Diego County and one of only 194 such accredited organizations of more than 7,000 eligible Chambers nationwide. The Chamber supports commerce across San Diego County, representing over 800 businesses. We offer a wide range of services and programs to our members, including networking events, business education and training, marketing opportunities, and advocacy on behalf of local businesses. North San Diego Business Chamber also works to promote economic development in the region by supporting local initiatives and working with government and community leaders to attract and retain businesses. For further information about North San Diego Business Chamber, please visit https://sdbusinesschamber.com/
