UFCW Endorses The Tax Cut for Striking Workers Act

"Senator Gallego's bill will end the double taxation of strike pay and give workers and their families peace of mind as they fight for a better life on the picket line."

WASHINGTON, D.C. - Today, the United Food and Commercial Workers International Union (UFCW), America's largest private sector union representing 1.2 million workers in meatpacking, food processing, grocery, retail, and other essential industries across North America, endorsed The Tax Cut for Striking Workers Act, introduced by U.S. Senator Ruben Gallego (D-AZ).

UFCW International President Milton Jones said:

Background

• Workers on strike often receive "strike pay" to cover portions of their lost income, which comes from a strike fund often created by a union. When a strike ends, workers owe taxes on their strike pay, which comes as a surprise to many.

• Workers contribute post-tax money to unions, which unions then give back to workers as compensation for lost pay during work stoppages, where it is double-taxed. Strike funds are essentially a savings scheme, but unlike other savings schemes, the federal government taxes this one twice.

• This bill would ensure that the income a worker receives from a strike fund is not included in their gross income, thus saving them from double taxation.

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The UFCW International is the largest private sector union in the United States, representing 1.2 million workers and their families in grocery, meatpacking, food processing, healthcare, cannabis, retail, and other essential industries. UFCW members serve our communities in all 50 states, Canada, and Puerto Rico. Learn more about the UFCW at ufcw.org.