The U.S. Supreme Court case National Labor Relations Board v. Exchange Parts Co., 1963, revolved around the issue of whether an employer's refusal to bargain with a union over insurance benefits for retired employees violated the National Labor Relations Act (NLRA). The company argued that retirees were not "employees" under NLRA and thus they had no obligation to negotiate about their benefits. However, the court ruled in favor of the National Labor Relations Board (NLRB), stating that while retirees are not considered "employees", issues related to retirement can significantly impact current employees' decisions regarding collective bargaining and labor peace. Therefore, it was held that employers must bargain with unions on matters concerning retiree insurance benefits as these directly relate to terms and conditions of employment.

In the dissenting opinion for the National Labor Relations Board v. Exchange Parts Co., Justice Harlan argued that the majority's decision to uphold a cease and desist order against Exchange Parts Co. was an overreach of power by both the court and NLRB. He contended that there was insufficient evidence to prove that Exchange had engaged in unfair labor practices, as alleged by NLRB, particularly regarding coercion or interference with employees' rights under Section 7 of NLRA. Furthermore, he criticized the majority's reliance on circumstantial evidence rather than direct proof of misconduct. Harlan also expressed concern about potential infringement upon employers' free speech rights when discussing unionization with their employees if such conversations could be construed as coercive or interfering without clear proof.