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U.S. Supreme Court

Fibreboard Paper Products Corp. v. Labor Board, 379 U.S. 203 (1964)

Fibreboard Paper Products Corp. v.

National Labor Relations Board

No. 14

Argued October 19, 1964

Decided December 14, 1964

379 U.S. 203


Respondent union, the bargaining representative for a unit of petitioner's maintenance employees, gave timely notice of its desire to modify the existing collective bargaining agreement. Four days before the expiration of the contract, petitioner informed the union that it had determined that substantial savings could be effected by contracting out the maintenance work, and that, since it had made a definite decision to do so, negotiation of a new agreement would be pointless. On the contract expiration date, the employment of employees represented by the union was terminated, and an independent contractor was engaged to do the maintenance work. The union filed unfair labor practice charges against the employer, alleging violations of §§ 8(a)(1), 8(a)(3) and 8(a)(5) of the National Labor Relations Act. The National Labor Relations Board (NLRB) found that, while petitioner's motive was economic, rather than anti-union, petitioner's failure to negotiate with the union concerning its decision to contract out the maintenance work violated § 8(a)(5) of the Act, which requires bargaining with respect to "wages, hours, and other terms and conditions of employment." The NLRB ordered reinstatement of the maintenance employees with back pay, and the Court of Appeals granted the NLRB's petition for enforcement.


1. The type of "contracting out" involved in this case -- the replacement of employees in the existing bargaining unit with those of an independent contractor to do the same work under similar conditions of employment -- is a statutory subject of collective bargaining under § 8(d) of the Act. Pp. 379 U. S. 209-215.

2. The NLRB did not exceed its remedial powers in ordering petitioner to reinstate its maintenance employees with back pay and to bargain with the union. Pp. 379 U. S. 215-217.

116 U.S. App.D.C. 198, 322 F.2d 411, affirmed. chanroblesvirtualawlibrary

Page 379 U. S. 204

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