Pleading Poverty during Bargaining may Require Production of Supporting Information.(Brief Article)

Originally appeared in Labor Law Newsletter - January 2002

The Board recently outlined its position with respect to the duty of an employer to produce financial information, upon union request, when the employer claims during bargaining negotiations that it is not able to meet union demands for wage increases.

In Lakeland Bus Lines, Inc., 335 NLRB No. 29 (August 27, 1999), the president of the company sent a letter to employees when the employer and union were not able to reach agreement on a compensation package. The letter stated, in relevant part:

We are trying to bring the bottom line back into the black . . . We are asking for help from our …