In the case of Carey, President of the International Union of Electrical, Radio & Machine Workers, AFL-CIO v. Westinghouse Electric Corp., 1963, the U.S Supreme Court dealt with a labor dispute involving collective bargaining agreements and arbitration clauses. The union had filed grievances against Westinghouse Electric Corporation for subcontracting work to non-union companies which they claimed was in violation of their collective bargaining agreement. The company refused to arbitrate these grievances arguing that it was not required by their contract to do so. However, the court ruled in favor of the union stating that under federal law (the Labor Management Relations Act), all disputes over interpretation or application of a collective bargaining agreement must be settled through arbitration if an arbitration clause is present in said agreement. This decision reinforced previous rulings emphasizing strong federal policy favoring industrial peace through enforcement of such arbitration provisions.

In the dissenting opinion for Carey v. Westinghouse Electric Corp., Justice Harlan argued that the majority's decision to allow unions to negotiate collective bargaining agreements on behalf of non-union members was a violation of these individuals' First Amendment rights. He contended that forcing non-union employees to accept representation by a union they did not choose infringed upon their freedom of association, and also raised concerns about potential conflicts of interest between union and non-union workers. Furthermore, he disagreed with the majority's assertion that such arrangements were necessary for labor peace, arguing instead that there were other less intrusive means available to maintain stability in labor relations without infracring on individual rights.