NLRB v. Truitt Mfg. Co. - 351 U.S. 149, 76 S. Ct. 753 (1956)

Rule:

A refusal to attempt to substantiate a claim of inability to pay increased wages may support a finding of a failure to bargain in good faith.

Facts:

An employer, bargaining with a union representing its employees with respect to a wage increase, claimed financial inability to pay the increase but refused the union's request for information with respect to its financial status. The National Labor Relations Board, finding that the employer's refusal to furnish such information was violative of the amended National Labor Relations Act's requirement of bargaining in good faith, ordered the employer to supply the union with information to substantiate the employer's position as to its economic inability to pay the requested wage increase. The Court of Appeals refused enforcement of the Board's order.

Issue:

Did the court of appeals err in setting aside the order of National Labor Relations Board to the employer to supply the union with information to substantiate the employer's position as to its economic inability to pay the requested wage increase?

Answer:

Yes.

Conclusion:

The United States Supreme Court reversed, holding that good faith bargaining required that the claims made by either bargainer should be honest claims, and that a refusal to attempt to substantiate a claim of inability to pay increased wages could support a finding of a failure to bargain in good faith.