Nonstriking GM Workers to Recieve Jobless Benefits
24 June 1998
Michigan Unemployment Agency to Pay Jobless Benefits to Nonstriking GM Workers Benefits Denied to Strikers
DETROIT, June 24 -- General Motors workers who
have been forced off their jobs by the strike at two Flint GM plants will
qualify for state unemployment benefits, according to a decision announced
today by Michigan's Unemployment Agency (UA).
"I'm very pleased with how quickly staff at the Unemployment Agency acted
to address the issue of unemployment benefits. I know these are difficult
times for workers who have been laid off as a result of the strike and want to
assure them that we will continue to operate efficiently and effectively in
order to help them and their families," Governor John Engler said.
"While we are allowing benefits to GM workers around the state who have
been displaced from their jobs by the labor disputes, we are disqualifying the
striking workers," UA Acting Director Jack Wheatley said.
Wheatley explained that state law is clear in the case of striking
workers. They are not entitled to jobless benefits.
"For nonstriking GM workers who have been laid off due to parts shortages
created by the strikes, we have found that they have no direct interest in the
outcome of the Flint labor disputes," Wheatley said. "In other words, based
on the information we have received, it is our finding that the nonstriking
workers do not have any reasonable expectation that their wages, hours or
employment conditions will change once the dispute is settled. Consequently,
they do qualify for benefits."
General Motors can appeal the individual determinations the agency will
issue on every GM-related claim filed for unemployment benefits.
The Unemployment Agency is now sending instructions to its local offices
telling them how to handle claims from striking and nonstriking GM workers.
Wheatley estimates that eligible workers could begin receiving benefit
payments as early as next week.
