"he vetoed this bill because the fund the state uses to pay unemployment benefits will be nearly $20 billion in debt by the end of the year.

The fund the state uses to pay unemployment benefits is already more than $18 billion in debt. That’s because the fund ran out of money and had to borrow from the federal government during the pandemic, when Newsom ordered most businesses to close and caused a massive spike in unemployment. The fund was also beset by massive amounts of fraud that cost the state billions of dollars."

The reasoning and background, if anyone is curious

Striking workers should get unemployment checks. Striking workers are unable to work due to no fault of their own. That's what unemployment is supposed to cover.

A strike can only legally happen if contract negotiations are not making progress. If negotiations have reached an impasse, the union can chose to strike, or management can choose to lockout the workers. As long as the union's side of the negotiating table are bargaining in good faith, neither a strike nor a lockout is the fault of the workers. Therefore in any just world they would be eligible for unemployment.

That’s a really weird take for someone who looks to be trying to run in the ‘28 race. Why this stance over all the others you’ve taken? This would have been a grand slam policy along with the others he’s approved this minth

If only the bloods and crips were pro-worker instead of pro-wealthy class.

Newsom, a Democrat, says he supports workers and often benefits from campaign contributions from labor unions. But he said he vetoed this bill because the fund the state uses to pay unemployment benefits will be nearly $20 billion in debt by the end of the year.

Beyond the debt, the Newsom administration has said the fund is not collecting enough money to pay all of the benefits owed. The money comes from a tax businesses must pay on each worker. But that tax only applies to the first $7,000 of workers’ wages, a figure that has not changed since 1984 and is the lowest amount allowed under federal law.

Unemployment is paid for by employers. Paying unemployment to striking workers is in effect forcing employers to keep paying their employees even though they're not working.

Keep in mind that California is an at-will employment state.