Unemployment Insurance

Maryland's second-highest court has ruled that Giant Food Inc. truck drivers and other workers who participated in a one-month strike against the company two years ago can collect unemployment insurance.The Court of Special Appeals ruled that an employer's operations as a whole must be considered in deciding whether a "stoppage of work" has occurred.Giant estimated that the strike, which began in December 1996, cost it about $3.9 million to replace goods that it ordinarily manufactured. Sales dropped almost 15 percent during the strike.

Maryland's second-highest court has ruled that Giant Food Inc. truck drivers and other workers who participated in a one-month strike against the company two years ago can collect unemployment insurance.The Court of Special Appeals ruled that an employer's operations as a whole must be considered in deciding whether a "stoppage of work" has occurred.Giant estimated that the strike, which began in December 1996, cost it about $3.9 million to replace goods that it ordinarily manufactured. Sales dropped almost 15 percent during the strike.

General Motors Corp. wants Maryland to halt payments of unemployment benefits to about 3,000 union workers at its Southeast Baltimore van assembly plant who were laid off last month as a result of strikes at two GM parts plants in Flint, Mich.The local development comes as GM is indicating that it may drop some low-profit cars if United Auto Workers' strikes continue into August.The No. 1 automaker had asked the state Office of Unemployment Insurance to either reconsider its June 12 decision to pay the benefits to the laid-off workers at the Broening Highway plant or it will appeal to the Unemployment Insurance Appeals Board.

In Congress and in thousands of workplaces, the nation's business community is seeking to change long-standing rules and practices to turn many people classified as employees into independent contractors -- a move that could cause many Americans to lose health insurance and pension and unemployment insurance benefits.In a little-noticed provision in its tax bill, the House of Representatives has approved a new -- and, many experts say, more inclusive -- test to determine who is an independent contractor.

When labor and employers find common ground in the struggle over benefits and taxes, it should be cause for rejoicing. But when both sides agree on raiding the piggy-bank of the unemployment insurance trust fund, it's time for alarm.So when the House of Delegates approved cutting in half the payroll surtax, while raising maximum weekly benefits by 19 percent, it was a politically popular but not necessarily a prudent decision. If enacted into law, it would be effective for a year while legislators study changes to the overall unemployment insurance system between sessions.

A state Senate committee yesterday moved cautiously on legislation that would decrease the unemployment insurance surtax on businesses and increase benefits to the jobless.By a 10-1 vote, the Senate Finance Committee approved a bill to decrease the tax from 1.7 percent of wages to 1.2 percent and raise the weekly benefits paid to the unemployed from $223 to $250.The House of Delegates last week approved a more liberal approach to the program, decreasing the tax to 0.9 percent and raising the benefit to $265.

The General Assembly should reward both business and unemployed workers for the improved state economy by changing the state unemployment insurance rates and benefits -- as long as the needed buildup in the trust fund's reserves is not jeopardized.But both houses must agree on the plan today, before the new quarterly tax bills are sent to employers. If there's no accord between the Senate Finance Committee and the House Economic Matters Committee, the business surtax remains at a stiff 1.7 percent and jobless worker benefits remain frozen at 1991 levels of $223 weekly.

The U.S. Department of Labor announced yesterday that it would give the state of Maryland $3.5 million this year to set up a chain of computerized career centers that could eventually allow job-seekers to dial into a state database of openings from their home computers.Charles O. Middlebrooks, assistant secretary of the Maryland Department of Economic and Employment Development (DEED), said the first grant would be used to purchase a large central computer, software to run a one-stop job application system and as many as 100 terminals to be distributed among 10 career centers around the state.

Maryland business owners will probably not have to pay as much as expected into the state's unemployment insurance fund this year.Both the state Senate and the House of Delegates unanimously passed legislation yesterday to reverse last year's decision increasing a 3-year-old surcharge.The surcharge, which began in 1991, will remain at 1.7 percent of the first $8,500 earned by each employee.Charles Middlebrooks, an assist ant secretary with the state Department of Economic & Employment Development, said the legislation should save Maryland businesses about $17 per employee annually, or about $25 million overall.

"Press 1 if you got a job last week . . ."The computerized telephone machines that allow Marylanders to pay their bills and check their train schedules are coming to the state's unemployment insurance system.Officials from the state's Department of Economic and Employment Development (DEED) announced yesterday that they are developing an automated computer system that will allow jobless Marylanders to file for unemployment insurance checks by making a telephone call.The jobless would feed information about themselves and their status directly into a state computer by punching telephone buttons in response to automated questions.

From the point of view of businesses, the Catch-22 of unemployment insurance has always been this: When the economy is at its worst, they are taxed the most. Mark down 2009 as offering no exception to that particular rule. Based on calculations set today, Maryland is poised to raise unemployment insurance premiums to the maximum rate allowed by law in order to replenish a trust fund badly depleted by unemployment claims. In this, neither Gov. Martin O'Malley nor his Department of Labor, Licensing and Regulation has any choice.

Recession-fueled layoffs have drained more than $550 million from Maryland's unemployment-benefits trust fund, which will trigger an automatic - and hefty - tax jump for businesses next year. The state said Monday that it expects that its annual Sept. 30 calculation of the fund balance will show that the largest allowable increase is needed to replenish the fund, which paid out more in the first seven months of the year than it did in all of 2008 as unemployment soared. The increase will vary for employers depending on their history of claims against the fund, ranging from an additional $136 per worker in 2010 for companies that haven't laid off in recent years to an extra $383 per worker for employers with many layoffs.

One by one, the 30 strangers will go around the room sharing how they wound up here - out of a job and on unemployment benefits. First, Rufus Miller breaks the ice with a motivational speaker's zeal, smiling tightly as if to convey empathy but determination, too. "It's great to meet you here, though it's unfortunate that you're unemployed," he says. "But this is the beginning of other things, do you agree?" Murmurs of assent, a few nodding heads, nervous smiles, a stray yes or two. "There is no doubt within any of your minds that you'll be working again, is that correct?"

TIP 20 If you lose your job, file for benefits as soon as possible If you lose your job, you may be eligible for unemployment benefits. Last month, Maryland's unemployment rate jumped to a 15-year high of 5.8 percent. File for jobless benefits as quickly as possible so that the state can determine your eligibility, says Thomas Wendel, executive director for Maryland's office of unemployment insurance. You can file by phone or online. "If you've been fired, or you quit, or it's a lack of work, we will try to determine whether under the law we could pay benefits or not," Wendel said, noting each case is unique.

Another huge wave of layoffs hit workers yesterday, with major U.S. employers planning to cut almost 60,000 jobs across various industries in the latest sign of distress in the labor market. Faced with falling profits, equipment maker Caterpillar Inc. said it's cutting 20,000 jobs, and Sprint Nextel Corp. plans to eliminate 8,000 jobs, mostly by the end of March. Home Depot Inc. said it will cut 7,000 jobs nationwide and close two of its design stores in Maryland. Other major employers announcing cuts yesterday included Texas Instruments and Pfizer.

Numbers-- Applications for unemployment insurance last week rose to 322,000 - a level still consistent with a labor market revival, economists said. QUOTE OF THE WEEK "I think the tide is turning in favor of the employee or job seeker versus the company." Rich Yamarone Economist at Argus Research, commenting on analyst predictions that more companies will add jobs during the coming months.

IMAGINE WALKING into your office, as always, and discovering that your desk has been cleaned out; your department is shuttered and locked; or you have 30 minutes to collect your belongings and leave. Would you be able to cope with unemployment? Companies are hiring - unemployment stood at 5 percent in July, down from more than 6 percent two years ago - but the job market is less than robust. And there's always the risk that your employer will defy statistics: Technology giant Hewlett-Packard Co., for instance, announced last month that it would eliminate about 10 percent of its full-time work force.

Q: Are there certain situations when the government or employers can deny a former employee's ability to apply for and collect unemployment? Does it make a difference if the employee was discharged for cause vs. laid off? Can you collect unemployment if you voluntarily resign? Does it make a difference if it's a private company vs. the public sector? Are bank employees treated differently? T.D., Reisterstown A: Most private and public employers in Maryland, except the federal government, are covered by Maryland's division of unemployment insurance law. Some types of employers are specifically exempt, but banks are not among them.

I was laid off in April 2002 after 29 years with a major telephone company. I collected unemployment benefits for 10 months. The next year, I again applied for unemployment benefits because I wasn't able to find a job. I filled out a form stating that I hadn't worked or earned a salary since filling out my initial claim form. The unemployment benefits office checked with my former employer and granted me another 10 months of benefits - or so I thought. The unemployment office now tells me that I need to pay back the second round of benefits.

Maryland businesses appear to be stuck with a surcharge for at least the next two years to boost the state's ailing Unemployment Insurance Trust Fund. A state task force studying the unemployment insurance program decided yesterday to put off recommendations for structural changes until the 2005 legislative session. Members said they needed more time to examine the delicate balance of adjusting tax and benefit payments. This year Maryland employers will have to pay a 1.1 percent surcharge - an extra $93.50 per worker - to shore up the trust fund as benefits continue to outstrip contributions to the trust fund.