Sks Die Casting & MacHining Inc. v. National Labor Relations Board, National Labor Relations Board v. Sks Die Casting & MacHining Inc.

This petition for review and cross-application for enforcement arises out of a controversy between SKS Die Casting & Machining, Inc. and Bay Area District Lodge No. 115, International Association of Machinists and Aerospace Workers, AFL-CIO (“the Union”), the union representing SKS’ employees. The controversy arose after SKS encountered financial difficulties and sought to renegotiate its existing contract with the Union. SKS proposed a two-tiered wage structure, in which existing employees would receive wages at or near their existing rates, but new production employees would receive wages approximately half those of existing production employees. The Union opposed SKS’ two-tiered wage proposal. After several weeks’ discussion between the parties, SKS informed the Union that it had filed for bankruptcy and had asked the bankruptcy court for permission to reject the existing collective bargaining agreement. The bankruptcy court initially refused to permit such rejection, but after negotiations between the parties for approximately a month produced no result, the bankruptcy court permitted SKS to reject the collective bargaining agreement. In response to the company’s rejection of…