## Facts

- A union representing Truitt Manufacturing Co. employees sought a 10-cent-per-hour wage increase during collective bargaining.
- Truitt asserted it could not afford the requested increase, claiming it was undercapitalized, had never paid dividends, and that an increase above 2.5 cents per hour would put it out of business.
- To evaluate the claimed inability to pay, the union requested access to Truitt’s financial records, including review by a certified public accountant, and later requested full information regarding financial standing and profits.
- Truitt refused to provide any financial information, asserting the information was not pertinent and that the union had no legal right to it.
- The NLRB found Truitt failed to bargain in good faith regarding wages in violation of NLRA § 8(a)(5) and ordered Truitt to supply information substantiating its inability-to-pay claim.
- The Fourth Circuit declined to enforce the order; the Supreme Court granted review.

## Issues

1. Whether the NLRB may find a violation of NLRA § 8(a)(5) where an employer claims it cannot afford higher wages but refuses to provide requested financial information to substantiate that claim.

## Decision

- The Supreme Court reversed the Fourth Circuit and upheld the NLRB’s determination.
- The Court held that, in these circumstances, the Board could find Truitt did not bargain in good faith by refusing to provide information supporting its asserted inability to pay.
- The Court allowed the Board to require production of financial information sufficient to substantiate the employer’s inability-to-pay position.

## Legal Principles

- The duty to bargain in good faith under the NLRA may require an employer to furnish relevant information needed for meaningful bargaining.
- When an employer affirmatively bases its wage position on an asserted inability to pay, financial information bearing on that claim is relevant and may be required upon a reasonable request.
- Disclosure is not an automatic requirement in all negotiations; whether refusal to provide information indicates bad faith depends on the circumstances and is primarily committed to the NLRB’s case-specific judgment.

## Conclusion

Because Truitt placed its financial condition at issue by asserting it could not afford the union’s wage demand, the union was entitled to information necessary to evaluate that claim, and Truitt’s refusal to provide any substantiating data supported the NLRB’s finding of bad-faith bargaining and an unfair labor practice under § 8(a)(5).


NLRB v. Truitt Mfg. Co., 351 U.S. 149 (1956)