National Labor Relations Board v. Sands Manufacturing Co., 306 U.S. 332 (1939), is United States labor law case, decided by a majority of 5 to 2 by the Supreme Court of the United States, which overturned a decision by the National Labor Relations Board because it was not supported by substantial evidence. The Court defined collective bargaining under the National Labor Relations Act to mean that proposals and responses to proposals were pending, and that future meetings were being planned. Absent such conditions, bargaining was not occurring. The Court also held that an employer did not violate the Act if it chose to deal with the employees on an individual basis. Facts Sands Manufacturing Co. was a company based in Cleveland, Ohio, which made water heaters. In the spring of 1934, its employees joined the Mechanics Educational Society of America. A 60-day contract was agreed to, and although it expired both sides repeatedly agreed to extend it. When workload lessened, company policy was to transfer men in slack departments to those areas where workload was high, respecting both their seniority and existing pay rates. In 1934, the company won a government contract, and agreed that the "new men" would not only be paid a lower wage but also would be the first discharged once work slacked off. A new contract was reached in June 1935 in which management won the right not to respect the wage rates and seniority rights of men transferred to new departments during slack times. As the government contract ended, the company closed the heater tank department. When the company sought to hire workers in its machine shop, it asked to hire the "new men" rather than transfer "old men" from other departments (which were shutting down). The union argued old men should be hired in the machine shop before any "new men." The union and company met repeatedly over the issue, but nothing was resolved. The company closed its plant in August 1935. When it reopened in September, it offered employment to several "old men" at much lower wage rates. The union refused the offer. The plant reopened, and the union began picketing. The National Labor Relations Board held that Sands Manufacturing had refused to bargain with union, had discriminated against union members in hiring, and had discouraged membership in the union. Sands Manufacturing sued to have the Board's order overturned. A court of appeals