Laid off due to collective bargaining wage increases - can I collect NYS Department of Labor benefits?
My company just laid off 15 people including me after our union negotiated higher wages through collective bargaining. Management said they can't afford the new pay scale and had to reduce headcount. I'm confused about whether this qualifies me for unemployment benefits through NYS Department of Labor since technically I wasn't fired for cause but the layoffs happened because of wage negotiations. Has anyone dealt with this situation before? Do I qualify for UI benefits or will NYS Department of Labor see this differently since it's related to union activity?
11 comments


Eve Freeman
Yes, you absolutely qualify for unemployment benefits. A layoff due to economic reasons is considered involuntary termination through no fault of your own. NYS Department of Labor doesn't care about the underlying business reasons - they only care that you were laid off, not fired for misconduct. File your claim immediately and make sure to report your last day of work accurately.
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Val Rossi
•Thank you! That's a relief. Should I mention the union negotiations in my application or just say it was a layoff?
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Clarissa Flair
same thing happened at my old job when minimum wage went up a few years back - they cut hours and laid people off. collected unemployment no problem
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Caden Turner
You just need to state that you were laid off due to lack of work or economic reasons. NYS Department of Labor has specific categories for this type of separation. The collective bargaining aspect is really just the catalyst - the actual reason for your unemployment is economic layoff. Make sure you have documentation from your employer about the layoff if possible.
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McKenzie Shade
•Wait, doesn't this create some kind of conflict since the union caused the wage increases that led to layoffs? I'm worried NYS Department of Labor might see this as somehow voluntary or related to labor disputes.
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Caden Turner
•No, labor disputes that result in strikes are different from economic layoffs. Even if wage negotiations contributed to the business decision, you personally didn't choose to leave - you were selected for layoff by the employer.
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Harmony Love
This is exactly why collective bargaining often mirrors minimum wage effects on employment levels. When labor costs increase whether through government mandate or union negotiations, some employers respond by reducing their workforce rather than absorbing the higher costs. It's unfortunate but economically predictable.
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Rudy Cenizo
•ugh this whole system is so frustrating... companies always threaten layoffs whenever workers try to get fair wages
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Natalie Khan
I had trouble reaching NYS Department of Labor when I got laid off last year - kept getting disconnected after waiting on hold forever. Someone here recommended using Claimyr at claimyr.com to get through to an actual agent. They have this video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Ended up being super helpful for getting my adjudication issues resolved quickly instead of waiting weeks.
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Val Rossi
•Thanks for the tip! I haven't tried calling yet but good to know there's a backup option if I run into problems.
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Daryl Bright
Just file ASAP and don't overthink it. Economic layoff = unemployment benefits. Period. NYS Department of Labor processes thousands of these cases and yours isn't unique or problematic.
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