GOVERNOR'S VETO

Pursuant to Article V, Section 6 of the Constitution of Virginia, I veto House Bill 938, which provides unemployment insurance benefits in the case of a lockout due to a labor dispute. 

Virginia remains a right-to-work state, a status that this proposal would compromise.

Labor unions negotiate contracts with employers, and if negotiations fail, employers are permitted to hire replacements or lockout workers until a resolution is reached. During a lockout, employers cannot permanently replace workers, and workers may seek back pay through a National Labor Relations Board proceeding.

The proposal would involve the Virginia Employment Commission (VEC) in labor disputes for the first time by requiring it to determine eligibility for unemployment benefits during such a dispute. This would be a significant departure from current practices, potentially entangling the VEC in contentious issues.

Furthermore, unemployment benefits are funded through contributions to the Commonwealth's Unemployment Insurance Trust fund, with tax collections increasing when solvency is low. While this process is fair for rebuilding the Trust fund during economic downturns, allowing labor unions or a few employers to raise taxes on others is unjust for employers and employees. 

Accordingly, I veto this bill.