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Minnesota Legislature debates jobless benefits for striking workers

Striking union workers from UPM Blandin picket in one of several locations near the paper mill Saturday, July 15, 2023, in Grand Rapids, Minnesota. The mill is not operating while the strike continues.
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Tom Cobb
Striking union workers from UPM Blandin picket in one of several locations near the paper mill Saturday, July 15, 2023, in Grand Rapids, Minnesota. The mill is not operating while the strike continues.

A bill would make workers involved in a walkout of at least one week eligible for jobless benefits. Backers of the plan point to major gaps between corporate profits and workers' pay.

Minnesota is among the states taking a closer look at extending unemployment benefits to workers who go on strike.

A bill making its way through the Legislature would make workers involved in a walkout of at least one week eligible for jobless benefits.

In the past year, labor economists have said, there's been positive movement with wage growth. However, backers of Minnesota's plan are pointing to major gaps between corporate profits and the pay most workers receive.

When those individuals want to fight for fair compensation, Jake Schwitzer, executive director of the left-leaning think tank North Star Policy Action, said they're at a big disadvantage in taking on ownership.

"They can use their considerable profits to engage in bad-faith negotiating tactics, and simply wait out their poorly paid workers," he said.

During labor disputes, Schwitzer said, providing unemployment benefits alleviates hardships and empowers workers to keep fighting.

Critics have cited the potential costs and disincentivizing people to work. However, research from Schwitzer's group estimates fewer than 200 additional workers are added to the unemployment rolls in these cases.

Nearly 10 other states have either debated or enacted similar laws.

John Kontzelmann, secretary-treasurer of UAW Local 125, said a walkout is viewed as a last resort, while noting the recent auto workers' strike was a tough choice for many of his colleagues.

"The uncertainty of no or reduced income, for an unknown amount of time, was very stressful and worrying," he said.

Without small levels of assistance from a union strike fund, Kontzelmann said, making ends meet would have been even more challenging for workers and their families.

The Minnesota bill cleared a House committee earlier in March and in the Senate, was laid over for possible inclusion in an omnibus bill. It's unclear if it will win final legislative approval.