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SDBC Holdings Inc. f/k/a Stella D’oro Biscuit Co., Inc. v. NLRB

Articles Discussing Case:

Second Circuit Reminds NLRB of Difference Between “Inability” to Pay and “Unwillingness” to Pay

Brody and Associates, LLC • May 06, 2013
An employer that during union contract negotiations denies a union contract demand, based on an “inability to pay” the cost of the demand, must produce its financial records if so requested by the union. The Second Circuit Court reversed the National Labor Relations Board’s (“Board”) recent decision and held that an employer’s statements that increased labor costs could cause its owner to withdraw funding and put the company at a disadvantage, did not constitute a claim of “inability to pay.” SDBC Holdings Inc. f/k/a Stella D’oro Biscuit Co., Inc. v. NLRB. Without a specific claim of “inability” to pay, the employer had no duty to provide the financial statements the union requested.