The employees of the American Sanitary Wipers Company, which was controlled by Mr. and Mrs. Lipsitz (the employers) (defendants), elected a union (plaintiff) to represent them in negotiating a new labor contract. When negotiations broke down over money issues, the union filed a complaint with the National Labor Relations Board (NLRB). The complaint charged that the employers violated § 8(a)(5) of the National Labor Relations Act (NLRA), which requires labor and management representatives engaged in collective bargaining to show each other good faith. An administrative law judge (ALJ) found that although the employers were willing to go on negotiating with the union, and observed all the formalities of collective bargaining, they stubbornly refused to give ground on any money issue that could even minimally increase the company’s operating costs. The ALJ recommended that a three-judge NLRB panel find the employers in breach of § 8(a)(5).