LOCAL RESTAURANTS CAN'T FIND WORKERS, BLAME FEDERAL UNEMPLOYMENT BENEFITS; WON'T RAISE WAGES, THOUGH

Special to El Rrun-Rrun

Citing Republican lawmakers and business complaints that federal unemployment benefits linked to the COVID-19 pandemic were discouraging workers from returning to work, Texas Gov. Greg Abbott announced that he was turning down federal $300-per-week supplemental benefit under the Federal Pandemic Unemployment Compensation program.

As a result, starting June 26, jobless Texans will lose access to the $300-per-week supplemental benefit.

As of April 30, the Texas Tribune approximately 344,000 Texans were receiving these PUA benefits, citing data compiled by economist Julia Coronado, economics professor at the University of Texas at Austin. President Joe Biden signed an executive order in January clarifying that the PUA program extends to those who refuse a job because of COVID safety concerns.

In addition, Abbott cut off a lifeline called Pandemic Unemployment Assistance, which extends unemployment aid to gig workers, self-employed people and others who don’t traditionally receive unemployment benefits.

This last action was the benefit that has resulted in complaints from restaurant owners, and even those who have remained working working that few of these workers – some working at usual $2.15 per hour plus tips – have returned, opting to claim the benefits by getting restaurant and business managers to sing that they had sought employment which kept them eligible for the money.

"I don't know how many people have come in and asked me fill the job-search form and when I told them there was work, they refused and went to get the signature somewhere else," said a Brownsville chicken wing restaurant owner. "In Brownsville, a lot of customers aren't really used to tip the waiters, so in a sense I don't blame them. But we have had to close on some occasions because no one wants to work."

He said that he is closing the two slowest days, Monday and Tuesday, because he can't find workers at the $2.15 per hour wage that also figures in tips. Under a labor formula, the tips are summed up at the end of a 40-hour pay period and then added to the hourly wage and – depending on whether they reach the $7.25 hourly wage – the difference is then made up by the employer. 

The small business owners cannot compete for wages with large national corporations, and some – like the Target stores – have attracted workers starting at $15 per hour. Target still requires facial coverings and social distancing in its stores.

 President Joe Biden signed an executive order in January clarifying that the PUA program extends to those who refuse a job because of COVID safety concerns. The pandemic guidelines that allow jobless people to refuse work for COVID-19 safety reasons and still qualify for any state or federal unemployment benefits are associated with the “COVID-related unemployment” that the state withdraws from on June 26. That, too, will end through Abbott's order.

"What does he care," said a former waiter. "I'm sure he gets a nice wage as governor and probably disability as well. If employers raised their wages to $15 per hour, I would jump at it. Forget the tips. We have some stingy people in Brownsville. I just can't make it with that and provide for my rent and other living costs."

Congress had extended these programs through September, but Abbott withdrew Texas from them months early, following pressure from business groups who said the programs disincentivized work. According to a press release, Abbott’s office said the decision was made to focus on connecting unemployed Texans with jobs instead of paying them unemployment benefits.

TWC did not immediately release the number of people who have been turning down jobs for COVID-19 safety reasons and would be impacted by this change. Unemployment claims have been declining and vaccination rates increasing in recent months.

Rick Levy, president of the Texas AFL-CIO, said the changes are “cruel” and exhibit the state’s characteristic “lack of understanding” towards working people and their needs.

“This pandemic is not over,” he said. “To say, ‘Well, we’re heading in the right direction, so we’re going to eliminate doing all the things that have us heading in the right direction,’ is just really short sighted.”