The NLRB found that Whitesell Corp violated labor law by failing to negotiate with the union in good faith. Specifically, Whitesell declared an impasse prematurely after only eight negotiation sessions. The NLRB stated this failure to negotiate in good faith was a violation of the duty to bargain under the NLRA. Whitesell objected, arguing it provided proper notice to the Federal Mediation and Conciliation Service and that any remedies should be limited. However, the NLRB applied precedent and found Whitesell had indeed violated the NLRA by prematurely declaring impasse and failing to bargain in good faith.

1. NLRB v. Whitesell Corp. Case
Facts:
The employer purchased a manufacturing facility whose employees were represented by a union. The
employer agreed to abide by the terms of the existing collective bargaining agreement. Prior to the
expiration of the existing agreement, the parties began negotiations on a new agreement. After meeting
for eight sessions, the employer declared an impasse and ultimately implemented its final offer. The
union filed unfair labor practice charges, and an administrative complaint was filed, charging the
employerhad prematurelydeclaredimpasse.
Issue:
National Labor Relations Board find that metal manufacturer Whitesell Corp. violated labor law when it
failedtonegotiate withaunioningoodfaith.
Rule:
NLRB stated that the failure to provide the requisite section 8(d)(3) notice constituted a separate
violation of the duty to bargain under section 8(a)(5) and that the remedy for this violation was to
extend the dues-checkoff provision until 30 days after the FMCS received the proper notice from
Whitesell. See Whitesell Corp., 352 N.L.R.B. at 1198 (citing Petroleum Maint., 290 N.L.R.B. at 462–63
(holding that the failure to provide notice to the FMCS as required by section 8(d)(3) violates sections
8(a)(1) and (a)(5) and that, in such circumstances, a dues-checkoff provision extends beyond the CBA
until 30 daysafterthe propernotice isultimatelydelivered)).
Defense fromWhitesell Corp
Whitesell objects to this ruling on a number of grounds. First, Whitesell argues that, under NLRB
precedent, it sufficiently demonstrated that it mailed timely notice to the FMCS. Second, Whitesell
alternatively argues that the remedial period for reimbursing the Union should end 30 days after the
Union contacted the FMCS requesting a federal mediator on July 10, claiming that, at this point, the
FMCS was effectively put on notice of the dispute. Third, Whitesell argues “there is no sound reason” for
Petroleum Maintenance's remedy of extending the dues-checkoff provision through 30 days after notice
is received because, citing to a number of cases,9 a violation of the notice requirement of section 8(d)(3)
doesnotextendthe termsof a CBA beyondthe expiration.
Application:
The National Labor RelationsBoard(“NLRB”or “the Board”) hasappliedforenforcementof itsorder
findingthatWhitesell Corporation(“Whitesell”) violated.
Turning to the merits, The employer’s negotiator informed the union that it had no intention to bargain
beyond the expiration of the contract. Further, the employer acknowledged thatit desired to implement
substantial changes to the existing CBA. The employer presented its proposal to replace the system of
annual wage increases with a merit-based system at the third of eight meetings. Moreover, the
employer claimed an impasse even though the parties had agreed upon 30 issues and were continuing
to come to agreementonotherimportantissues.
The employer’s claim that the parties were deadlocked over wages was belied by the fact that the union
had already reduced its wages demands. Rather, disagreements over disciplinary action and overtime
were the only issues over which the parties were clearly deadlocked, while progress had been made

2. over retirement, wages, vacations, performance evaluations, seniority, leaves of absence and sick leave
provisions. Moreover, the employer’s argument that the parties had reached a good-faith impasse was
undermined by the NLRB’s finding that it failed to provide information about vacation plans as required
by NLRA Sec. 8(a)(5). Thus, disagreement was prolonged by the employer’s failure to provide the
information requested by the union. Finally, the employer cancelled a voluntary supplemental accident
fund without bargaining over the issue. Consequently, the employer failed to bargainin good faith when
it terminatedthe existingcontractwithoutreachingavalidimpasse.
Conclusion:
The Eighth Circuit concluded that substantial evidence supported findings that the employer failed to
negotiate to a valid impasse where it imposed an arbitrary deadline on negotiations by stating that it
intended to present its final offer by a specific date and engaged in only a limited number of bargaining
sessionsbeforedeclaringimpasse.