AFL-CIO Alert

Message From Denis Hughes President AFL-CIO

UNEMPLOYMENT: NEW YORK’S WORKING FAMILIES DESERVE BETTER

Next week the State Department of Labor will release the unemployment numbers for January and we can all expect another jolt in terms of new and extended filings. The facts below outline why the NYS AFL-CIO is leading the fight to increase the unemployment benefit and create an annual indexation of the benefit.

There is simply no choice. If working families are going to get through this economic crisis, we need the legislature and Governor to act now.

CLAIMS ARE AT HISTORIC LEVELS & GETTING WORSE

First time claim filings in New York City have increased by over 25% from last year.
The unemployment rate in New York State is 7.0%, and in New York City it is 7.4%

NEW YORK’S BENEFIT IS SHAMEFULLY LOW

The maximum weekly benefit is just $405 per week and has not increased for a decade
New York’s benefit rate ranks among the lowest of all the states
Every surrounding state has a higher benefit than New York
The New York benefit only replaces 26.6% of the lost income for unemployed workers

WE NEED TO INCREASE BENEFITS AND GUARANTEE FUTURE INCREASES

For every $1 in unemployment benefits spent, $1.64 of economic activity is generated
A benefit increase will help stop foreclosures and help working families bridge the income gap
Unemployment benefits are immediately and directly spent in the economy
Unemployment benefits help the local economy in the form of greater sales tax revenue, as well as property taxes because more people will be able to keep their homes

Indexation at 50% of the average weekly wage
is a must

We can never again allow the unemployment benefit to slip in value to such an extent. We also cannot allow the unemployment trust fund to become so underfunded. Indexation of the benefit and corresponding premium increases will ensure that workers will receive an updated and meaningful benefit. Indexation will also prevent the need for large, dramatic and costly one shot increases. Indexation allows for a gradual, rational and affordable process for both employers and workers.

Denis M. Hughes

Issue of the Week

The New York State AFL-CIO Strongly Supports ...

Legislation has been introduced (A. 4921 John/S.2245 Onorato) to gradually increase the unemployment benefit over 4 years, to raise the maximum weekly benefit to $625.00 per week. This is about 50% of the average weekly wage.

Also introduced was A. 4920 John, an omnibus reform bill to overhaul the entire unemployment system in the State. This bill would not only address the benefit & funding of Unemployment Insurance, but it would add several classes of employees not currently covered.

Keep An Eye On

Tuesday, March 3, 2009
Nurses Issues Committee Meeting, 2:00 p.m., 100 South Swan Street

Wednesday, February 25, 2009
Meeting on Health Insurance Costs, 1:00 p.m., 100 South Swan Street. Mr. Troy Oechsner, Deputy Superintendent for Health at the NYS Department of Insurance will talk on legislative and regulatory controls on the costs of health insurance.

For further information contact Ed Donnelly at:
518-436-8516 or edonnelly@nysaflcio.org