In the 1954 case of General Drivers, Warehousemen, and Helpers, Local Union No. 89 et al. v. American Tobacco Co., Inc., the U.S Supreme Court ruled in favor of the American Tobacco Company (ATC). The dispute arose when ATC decided to change its method of delivering products from using their own trucks and drivers to employing independent contractors who owned their own vehicles. This led to a significant reduction in work for members of Local Union No. 89 which prompted them to file a lawsuit against ATC claiming that this was an unfair labor practice under Section 8(1) and (3) of the National Labor Relations Act as it interfered with employees' rights by discouraging union membership through job loss or reduced working hours. The court held that while employers are generally prohibited from interfering with workers' rights under these sections, they do not prevent an employer from making changes in his business operations even if such changes result in unemployment or dislocation among existing employees unless there is evidence showing anti-union animus behind those decisions.

The dissenting opinion in the case of General Drivers, Warehousemen, and Helpers, Local Union No. 89 v. American Tobacco Co., Inc., argued that the majority's decision was a departure from established principles governing labor disputes under federal law. The dissent contended that the National Labor Relations Board (NLRB) should have jurisdiction over this dispute because it involved unfair labor practices within its purview. They believed that by allowing state courts to adjudicate such matters would undermine uniformity in national labor policy and potentially lead to conflicting decisions between states and federal authorities on similar issues. Furthermore, they expressed concern about potential bias or lack of expertise among state judges dealing with complex federal laws related to collective bargaining agreements and other aspects of industrial relations.