N.L.R.B. v. Transmarine Navigation Corporation

In N.L.R.B. v. Transmarine Navigation Corporation (9th Cir. 1967) 380 F.2d 933, the board recognized that it was impossible to reestablish the status quo ante of the parties once the employer had gone out of business. A normal bargaining order would therefore be futile. Instead the NLRB fashioned a remedy to make the affected employees whole for the loses they suffered because of the employer's failure to notify the union of the impending shut down of operations and to bargain about its effect on members of the bargaining unit. The remedy was designed "to recreate in some practicable manner a situation in which the parties' bargaining position is not entirely devoid of economic consequences" for the employer. ( Transmarine Navigation Corporation, supra, 170 N.L.R.B. at p. 390.)