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In the case of National Labor Relations Board v. C & C Plywood Corp., 1966, the U.S Supreme Court ruled in favor of the National Labor Relations Board (NLRB). The dispute arose when an employer refused to bargain with a union that had been certified by NLRB as a representative for its employees. The employer argued that it was not obligated to negotiate because there were allegations of misconduct during the election process which led to certification. However, these claims were dismissed by both NLRB and later on appeal at circuit court level due to lack of substantial evidence supporting them. When brought before the Supreme Court, it upheld these decisions stating that unless there is clear proof showing impropriety affecting results or violation of basic fairness during elections, employers are required under law (National Labor Relations Act) to recognize and engage in good faith bargaining with duly certified unions.
In the dissenting opinion for the National Labor Relations Board v. C & C Plywood Corp., Justice Harlan argued that the majority's decision to uphold an order by the NLRB, which required employers to bargain with a union over issues of pension and insurance benefits for retired employees, was incorrect. He contended that such matters were not part of "conditions of employment" as defined under Section 8(d) of the National Labor Relations Act (NLRA). According to him, retirees are no longer 'employees' within NLRA’s meaning because they do not work or receive compensation from their former employer. Therefore, he believed these subjects should be excluded from mandatory bargaining topics between unions and companies. Furthermore, he expressed concern about potential conflicts between active workers and retirees if retirement benefits become a subject in collective bargaining agreements.