National Labor Relations Board v. Katz

Background

The case involves Williamsburg Steel Products Company, a partnership that makes steel products, and Local 66 of the Architectural and Engineering Guild, the union certified to represent the plant’s technical employees. The union sought collective bargaining and met with the company and five related employers in a series of meetings from August 1956 through May 1957. While talks were ongoing, the company changed its sick-leave plan, granted merit raises to some employees, and announced a new automatic wage-increase system. The union filed charges and the National Labor Relations Board found those unilateral actions unlawful and ordered the company to stop.

Reasoning

The core question was whether an employer may lawfully make unilateral changes to terms that are being negotiated. The Court held that unilateral changes that affect subjects under negotiation effectively bypass and frustrate the duty to meet and confer about wages, hours, and working conditions. The Court agreed with the Board that such actions can constitute a refusal to bargain and be unlawful even without a separate finding that the employer lacked good faith overall. The Court reversed the Court of Appeals and directed enforcement of the Board’s cease-and-desist order.

Real world impact

Employers negotiating with a certified union may not lawfully alter pay, sick leave, or merit procedures without first discussing those changes with the union. Unions gain stronger protection during negotiations, and the Board can require employers to stop or undo unilateral changes without proving a broader scheme of bad faith. The Court noted that narrow exceptions might exist but found none in this case.