AUGUSTA – Mainers who work part time have something to celebrate this Labor Day. Most of the 100,000 or so part-timers will become eligible for unemployment benefits starting this January.

The bill making the benefits possible was passed by lawmakers last spring and becomes law Sept. 13 – 90 days after the Legislature adjourned. The date was postponed until new unemployment rules could be written.

“The new program needs to go through rulemaking and people cannot apply and get benefits under the law until January,” said Labor Commissioner Laura Fortman.

The expansion of benefits to part-time workers was a controversial issue for lawmakers. It was strongly opposed by business groups that feared it might trigger an increase in the taxes they pay to fund the unemployment program.

“We think this is a good thing to do, as does the governor,” Fortman said. “[Gov. John Baldacci] was under pressure to oppose the bill, but he signed it into law.”

Peter Gore, a lobbyist with the Maine State Chamber of Commerce, said business groups were concerned when the bill passed and are even more so now.

Employers pay taxes into the Unemployment Trust Fund that provides benefits to workers. Businessmen fear that by expanding the numbers of people who qualify will only trigger the need for an increase in those taxes that keep the fund solvent.

“We are still in a pretty soft economy out there,” Gore said. “Just look at the manufacturing jobs that have been lost in the last 10 or 12 months. Those were high-paying jobs, and they will get the highest level of payments from the [Unemployment Trust Fund], and that is a concern.”

But Ned McCann, secretary of the Maine AFL -CIO, maintains the economic insecurity worrying Gore is one of the arguments for the expansion. He said while few unionized workers in Maine are part-time workers, a lot of former union members are now working two or more part-time jobs.

“Now there will be a safety net for part-time workers,” he said. “Job insecurity and economic insecurity are very high right now, and this part-time unemployment will at least put some income into your pocket to help put food on the table.”

Fortman said her staff estimates only about 500 Mainers will receive benefits a week. The estimated average weekly benefit under the program is $87 a week.

“We looked at other states that have part-time benefits to come up with our estimate,” she said. “We think it is a realistic estimate.”

But Gore said he believes the estimate is too low. No one will really know how many Mainers will seek benefits until the program is in operation, he warned. Any downturn in the economy will only increase layoffs of part-time workers, as well as full-time workers, he said.

“I think the cost is going to be more than the $2.3 million a year that has been projected, and that increased cost will be passed on to employers,” Gore said. “That’s a tax increase they simply cannot afford.”

Fortman said lawmakers did consider business leaders’ concerns. She said her agency has been directed to monitor the expanded program through 2004 and report back to the Legislature in 2005.

In that session, lawmakers will have to decide whether to continue the program beyond Sept. 30, 2005, when the law is set to expire unless it is reauthorized by the Legislature.

“Yes, there is a sunset provision,” Gore said. “But, honestly, have you ever seen the Maine Legislature cut an ongoing program providing benefits to some group? It’s not going to happen.”

Christopher St. John, executive director of the Maine Center for Economic Policy, a nonprofit research group that advocates for low-income Mainers, said it has been his experience that the Department of Labor is conservative in estimating any changes in law. But he acknowledged the cost of the program could be higher than expected if the economy worsens.

“The reason we have unemployment is to tide workers over the bad times so they are available for employers when the economy improves,” he said. “It seems to me employers should support this program because it will do just that for a growing number of workers.”

St. John said Maine’s work force has been changing for several years, with the number of part-time workers now estimated at 15 percent of the total work force. The number in the total work force fluctuates annually, averaging about 695,000 so far in 2003.

Fortman said the previous law required that, in order to be eligible to receive unemployment compensation benefits, a person must be able, available for and actively seeking full-time employment.

The new provision provides that a person who is able, available and seeking part-time work can get benefits only if the person has a history of part-time work and continues to seek work for a comparable number of hours per week; or can only work part-time because of a family member’s illness or disability; or because of safety reasons concerning the person’s family.

“This will not cover every part-time worker,” she said.

Fortman said rulemaking to implement the program will get under way soon, and both labor and business groups agree they will be closely watching the process.