The Social Security Act of 1935 ordered every state to set up an unemployment compensation program in order to provide payments to workers during periods of temporary unemployment. The Federal Unemployment Tax Act imposes a tax on employers based on wages paid for covered employment. In this week's class discussion you will converse with your classmates on questions dealing with federal and state unemployment compensation.

Please respond to all of the following prompts:

Question: As a way of curbing the unemployment rate, California has instituted a "shared-work compensations: program". Under this program, a company faced with a layoff of its workers may place its entire workforce on a four-day workweek during the period of hardship. During this period of reduced workweeks, the employees collect partial unemployment compensation benefits. When business rebounds, the firm returns to its normal five-day work-week, and the unemployment compensations benefits cease. Participation in the program must be approved by both the employer and the unions. If, however, the first is not unionized, management has the discretion of putting the plan into effect.

What are the benefits of such a share-work compensation program to (1) the employer and (2) the employees?

What advantages do you see in the operation of a share-work compensation program, especially from the viewpoint of organized labor?