A bill passed through the state House on Thursday by a 61-47 vote along partisan lines will improve Michigan’s unemployment insurance system. Or it will substantially damage the system.
It all depends on whether a Republican or a Democrat is doing the talking.
“This bill would significantly reduce Michigan Unemployment Insurance benefits. Even though Michigan and our workers are slowly recovering from this economic recession, we are not at a point where we can afford to cut off aid to Michigan’s unemployed,” said Rep. Jon Switalski, a Warren Democrat. “Our residents rely on these benefits to pay their rent and mortgages, gas and electric bills, phone bills, and to put food on the table.”
State Rep. Wayne Schmidt, a Traverse City Republican who guided the two-bill package through the House, said the intent was to strengthen unemployment insurance through reforms and to pay back the $3.1 billion debt the state system owes to the federal government.
“The focus of this and all the other reforms the Legislature has worked on this year is to finally bite the bullet, as difficult as it may be, to address the government overspending that has been allowed to be neglected for the past 10 years. Growth and improvement of our state’s economy and job market will continue to be held back until all the books are balanced and our government is right-sized for welcoming employers and job providers.”
According to the Democrats, the package of bills, which now goes back to the Senate, will:
* Require workers to take jobs that are outside of the worker’s specialized training and experience, and drastically lower the minimum wage that the claimant must take.
* Add new provisions tightening the definition of when an individual would be considered “unavailable for work.”
* Allow the Unemployment Insurance Agency to obtain restitution from a claimant due to a benefit overpayment by aggressively garnishing wages, even in situations when the claimant was an “honest actor” and a mistake was made by the agency.
And here are the GOP talking points – the bill will:
* Increase job-hunt requirements;
* Disqualify employees who quit or are fired with cause;
* Update the definition of seasonal employees;
* Lower the threshold for “suitable work” for some recipients;
* Create an amnesty program for employers who owe the Unemployment Insurance Agency; and
* Make unemployment fraud penalties similar to those for welfare fraud.
One amendment added to the legislation was put forward by Rep. Andrea LaFontaine, a former Richmond Republican who has apparently taken up residence in Columbus Township. Under her proposal, benefit recipients would be permitted to earn up to 10 percent more of their average weekly benefit when on unemployment by taking a part-time job. Under the current system, unemployment checks are cut when a recipient starts earning part-time pay.
“Michigan’s UI system has long been in need of modernization. We need to ensure it is fair to employers who pay in, while maximizing benefits for those who receive them to support their families,” LaFontaine said. “Those who are unemployed should be rewarded for making the decision to take part-time work if they’re unable to find full time employment.
“In this time of economic downturn, there is no reason to punish someone financially for taking on whatever work they can find. We must ‘incentivize’ those who are willing to work when on unemployment,” she added.
Meanwhile, Senate Democrats are needling their GOP counterparts for rejecting a Gov. Rick Snyder plan put forward Dec. 1 to embrace “work sharing” in Michigan.
A concept that has gained widespread acceptance in many states, work sharing allows a company to reduce workers’ hours during slow economic times, provide those employees with offsetting benefits from the unemployment insurance fund, and thereby avoid layoffs.
