In the last few weeks, about 1,500 West Virginis have learned that they will lose their jobs as big companies are shutting down their workplaces.
Cleveland-Cliffs announced that their tinplate production plants in Warenet would be inactive in April, resulting in a loss of potential job for 900 workers. Then, Allegheni Wood Products closed their doors and ended about 600 jobs in many places.
Despite the loss of all those jobs, the Senate Finance Committee on Saturday made two bills, which will significantly limit unemployment benefits in West Virginia.
The bills now go to the full Senate. Committee members said that similar bills have come in previous years, but laws have not been made.
Josh sword
Organized labor leaders said that they would urge their members to reach the senators and representatives and ask them to reject any attempt to overcome unemployment benefits.
Josh Talwar, president of West Virginia AFL-CIO, said, “This is probably the most heart disease that I have seen in my 25 years of representing working people in Capital.”
“To take advantage earned from around 2,000 hard -working people who are losing their own jobs through their own mistake, it is unimaginably cruel and completely unnecessary.”
The director of the Workforce West Virginia testified before the committee that the overriding of changes would shut down the state’s unemployment trust fund. Right now, the trust fund has a balance of $ 387,657,779.05.
State officials, citing the economic model, said that a 10% long unemployment rate can insult the trust fund in 91 weeks. In other words, the unemployment trust of the state may be less than two years during a severe recession before tired.
Scott edkins
“We are trying to be active because we are going in the wrong direction on that trust fund balance,” Workforce West West Virginia acting director Scott Edkins told the senators.
“Gambhir recession – 18 months, and we will see this body for funding or we will be looking at Feds.”
The Senate Bill 840 makes many changes, the most West-Virginia’s seasonal-dominated unemployment rate to determine the maximum number of weeks of maximum profit eligibility. Therefore, for example, if the average unemployment rate is less than 5.5 percent, the maximum duration of profit will be 12 weeks.
The most recently released data showed 4.3 percent of the unemployment rate of West Virginia. The current maximum duration for unemployment benefits is 26 weeks.
This bill specifies that West Virginians will remain eligible only for unemployment benefits if they conduct at least four task search activities each week. There are 10 activities that will be eligible, such as completing job applications or taking Civil Services Examination.
The bill is a maximum weekly profit rate from its current 66 and two -thirds of the average weekly salary in West Virginia to 55 percent. According to the bill, the amount does not exceed $ 550.
The Senate Bill 841 focuses on unemployment taxes and benefits. It is a fellow bill that indicates some changes proposed by SB840.
Jack woodram
The MPs of the Senate Finance Committee brought conditions in Cleveland-Clips and Allegheni Wood Products, wondering how they can affect the state.
“Recently we have two major employers in the state who have closed their doors. How to affect funds? “Asked the Senator Jack Woodram, R-summer.
Edkins said that closure will have significant impact, even the state works to help the employees laying which helps to find other jobs as soon as possible. “This trust can make a big impact on the fund, of course,” he said.
Mike Olivorio
Senator Mike Olivario, R-Monongalia, also asked about the effects of closing the same in Alleghani Wood Products.
“I am only worried about this trigger that can limit employment benefits when we have people who are going to earn very good wages. Often we think of unemployment comp for people in low wage classification, but these are people with very good wages and as they try to replace it on a temporary basis, I am a bit worried about stepping with a hat right now. ,
Olivario wanted to know what are the options.
Edkins said that it depends on the legislature.
“I mean, I don’t want to tell that the trust is in strict straits in the fund. It is in a very good shape,” he said. “But a large recession under the pike can have a very important impact on the trust fund.”