Boeing Strike Could Stress-Test Washington State's Unemployment Insurance Policy

A recent hotel strike in Washington state has highlighted concerns about the impact of a new policy that allows striking workers to collect unemployment insurance (UI) benefits. The policy, which went into effect this year, has already been tested by a small number of striking workers, but a potential Boeing strike could pose a significant challenge to the system.

According to the Washington state Employment Security Department, as of September 14, 174 striking workers have collected UI benefits, totaling $604,491. While this may seem like a small number, it's worth noting that these benefits are paid for by employers and traditionally meant for workers who lose their jobs through no fault of their own.

The policy was passed after labor unions in Washington state successfully lobbied for the change, which allows striking workers to access limited UI benefits during a strike. However, critics argue that this policy favors organized labor at the expense of businesses and most workers in the state.

Boeing, one of the largest employers in the state, has already offered its union members a new contract with significant wage increases and other benefits. While it's unclear whether the union will accept the offer, a strike could still pose a challenge to the UI system. If all 17,000 Boeing workers represented by the Society of Professional Engineering Employees in Aerospace (SPEEA) were to apply for UI benefits, the theoretical payout would exceed $123 million.

The Unemployment Trust Fund, which holds about $3.6 billion, is already projected to fall below its statutory solvency threshold this year. Adding large strike claims could further strain the system and affect cash flow and employer tax calculations.