This commentary is by state Rep. Taylor Small, P/D-Winooski.
So far this has been another rough year for labor in the Legislature. From pensions to unemployment insurance, a consistent theme keeps surfacing — a lack of balance and equity for working Vermonters in the policies being considered by the Legislature.
S.10, a bill addressing the unemployment system, passed the Senate with an acknowledgment of the strain that families on unemployment insurance are currently experiencing. As we listened to the joint public hearing on unemployment insurance benefits last Tuesday, we heard stories that matched the data that we are receiving: workers dropping out of the economy to take care of their children, loved ones, and their own health.
One mother shared that she remains on unemployment and other subsidy programs because, as a single parent and domestic violence survivor, she continues to struggle with the balance of finding work for herself and child care for her 10-month-old.
The House Commerce Committee stripped support for these unemployed Vermonters out of S.10 by removing a flat $50-a-week dependent care benefit for people with dependents under 18 to help meet their basic needs. This amendment is a clear signal that unemployed workers’ struggles matter less than the Vermont businesses, as businesses are set to receive $400 million in tax breaks from the very same bill.
Unemployment insurance is a temporary program that was established during the New Deal to support workers as they transition between jobs, while simultaneously keeping them connected to the workforce. As it stands, workers on unemployment insurance can only receive up to 57% of their salary prior to unemployment.
Many experts agree Vermont’s wage replacement rate should be higher as it is one of the lower wage rates in the country and is an inadequate amount to meet one’s basic needs.
Unemployment insurance is meant to keep our workers out of poverty. By not recognizing the need to support workers during their time of need with enhanced income support like dependent benefits, we jeopardize the integrity of unemployment insurance — a temporary wage replacement program to get Vermonters back to work.
This particularly affects marginalized communities who are disproportionately impacted by the Covid-19 pandemic economy.
The current House version of S.10 includes a large and more permanent employer rate calculation adjustment than the bill proposed by the Senate. Throughout the debate, we have often looked at this issue through the lens of how little employers should have to pay in order to keep the system stable.
This lens sets up a false narrative. We should be asking how much support workers need and then determine what employers need to contribute to adequately support the unemployment insurance system. Without that lens. we will constantly find ourselves in the situation we are in now in the House, with employers getting approximately $400 million tax relief and unemployed Vermonters receiving minimal additional support.
This lens also leads us to develop Covid-19 economic recovery policy almost entirely in favor of supporting businesses, with very little direct support for workers.
And this lens ultimately reflects a failed trickle-down economic theory, as opposed to investing in working people who will spend their money on basic needs in their communities.
As we recover from this recession, workers have a different path from employers. Workers need economic security while they find reliable and safe child care, safe working conditions, and a job that meets their professional and basic needs.
Our state and our employers cannot function without workers. Working Vermonters deserve more than what is in this amended bill. A dependent benefit program, or other substantial unemployment insurance benefit improvements, are targeted policy approaches to support women and working families.
As a state, we should be investing in our working families and specifically women beyond what may be available under the federal government’s one-year American Rescue Plan programs. Vermont should not abdicate its responsibility to support working Vermonters recover from the recession by relying only on federal policy.
We understand there are challenges to improving our unemployed insurance system, but we should prioritize the needs of unemployed Vermonters first and resource the Department of Labor to adequately address internal operational issues to meet our state’s needs.
If we see this issue through that lens, our workers, our communities, our children, our economy, and our state will be better off.
