(Source: MIRS.news, Published 12/10/2024) Senate bills that raise the weekly financial benefits one can receive from unemployment and increase the amount of time a person is eligible for the benefits passed the House Tuesday, making the governor's signature the only thing stopping the change. 

The bills mark the first change in benefits in more than 20 years and reverse legislation signed under the Gov. Rick Snyder administration that trimmed the number of weeks someone could collect benefits.

Just five days ago, the Senate approved the $362 to $614 increase that an unemployed person would qualify for by 2027 after a series of annual, incremental increases. Part of the package extends the unemployment eligibility period from 20 weeks to 26 weeks. 

Speaker Joe Tate (D-Detroit) and a group of around 17 House Democrats held a press conference during dinner break to celebrate the passage of the unemployment insurance expansion. 

"This is a huge victory for Michigan's working people," said Michigan AFL-CIO President Ron Bieber. "For too long Michigan has lagged behind not only our Midwestern neighbors, but almost every other state in the country when it comes to our safety net for workers who lose their job through no fault of their own. 

"Unemployment can affect anyone and everyone, especially union workers, as our industries are often first to bear the brunt of economic crises. Strong unemployment benefits that allow workers to continue to put food on the table and support their families while they look for work is simply the right thing to do by working people". 

However, Tate said the caucus isn't open to negotiations with the business community in exchange for changes to the paid sick leave law set to go into effect in February. The plan for paid sick leave is to continue conversations, Tate said.

Members of the business community wrote in a letter sent to the Speaker last week that they would be OK with a higher unemployment insurance benefit in exchange for more stability in the system and earned sick time reforms.

The business community members didn't specify how high they'd be willing to go. SB 40 extends unemployment benefits from 20 weeks to 26 weeks and the maximum benefit from $362 a week to $614. The average UI benefit for similar states, however, is $502.07 a week. 

In exchange for signing off on the higher wage, business groups want the increase phased in over five to seven years and any increase paused if the UI Trust Fund drops below $2.5 billion. 

They also want a system where employers can report occurrences of job interview no-shows and turned-down job offers, also known as "ghosting." 

And, maybe more importantly, they'd like changes to the Earned Sick Time Act set to take effect in February that would give some employers more flexibility if they already offer at least 72 hours of paid sick time a year. 

"Our members see a connection between HB 6057 and the current move to increase unemployment benefits," the letter reads. "The two issues, whether we like it or not, are connected to the ability of Michigan employers to not just be able to compete with competitor states, but to the survivability of many businesses with a presence in Michigan." 

While having not read the letter, Dave Woodward, who has advised the One Fair Wage and Paid Sick Leave initiatives throughout the process, said he doesn't see why Democrats should feel as if they need to deal at all. They are in the majority of both the House and Senate and shouldn't need any Republican or business community support to pass a UI increase. 

He said those suggesting this compromise deal are the same people who concocted the "adopt and amend" strategy for the paid sick leave proposal that landed the issue in front of the state Supreme Court in the first place. 

As far as he's concerned, there should be "no deal." Along the same lines, a UAW source familiar with the letter was not inspired. 

"For the UAW, the House should absolutely pass SB 40 as it is and should not attempt to water down the Earned Sick Time Act. There is a choice to be made. This is either fighting for the working class people of this state or doing the bidding of corporations and their lobbyists." 

SB 40 passed by 58-51 and SB 962, SB 972, SB 975, SB 976 and SB 981 passed by 56-53, with Rep. Curtis Vanderwall (R-Ludington) absent. At a certain point in the afternoon, Rep. Donni Steele (R-Lake Orion) was excused from voting, leaving the House with 108 members present.

In a floor speech, Rep. William Bruck (R-Erie) said there are many things in the package that he disagrees with, and that he thinks they will be bad for business in the state.

"Unemployment is not meant to be a living wage. It's not meant to be an amount that someone can function on and not have to worry about getting another job," Bruck said. "It's there for a purpose. It's there as a bridge, a short bridge to get them from Job A to Job B."

Rep. Jim Haadsma (D-Battle Creek) said unemployment benefits are not a permanent solution, but they are the lifeline people use to afford life in the meantime.