In NLRB v. Bildisco & Bildisco , the Supreme Court held that an employer who files for reorganization under Chapter 11 of the Bankruptcy Act does not violate Section 8(a) (5)by unilaterally changing the terms of the collective agreement:

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In NLRB v. Bildisco & Bildisco, the Supreme Court held that an employer who files for reorganization under Chapter 11 of the Bankruptcy Act does not violate Section 8(a)(5) by unilaterally changing the terms of the collective bargaining agreement after filing the bankruptcy petition. This decision recognizes the unique circumstances bankruptcy presents, allowing for modifications to labor contracts under certain conditions to facilitate the reorganization process.

In NLRB V Bildisco & Bildisco , the Supreme Court Held That