In the 1942 case of Terminal Railroad Association of St. Louis v. Brotherhood of Railroad Trainmen et al., the U.S Supreme Court dealt with a dispute between a railroad company and its employees' union over collective bargaining rights. The Terminal Railroad Association had refused to negotiate with the Brotherhood of Railroad Trainmen, arguing that it was not obligated to do so under federal law because it did not operate any trains itself but merely provided terminal facilities for other railroads. However, the court ruled in favor of the union, holding that even though Terminal did not run trains itself, it was still considered an employer under railway labor laws due to its control over working conditions and employment terms for workers who operated trains on its tracks. Therefore, it was required by law to engage in good faith negotiations with employee representatives.

In the dissenting opinion for Terminal Railroad Association of St. Louis v. Brotherhood of Railroad Trainmen, Justice Frank Murphy argued that the majority's decision to uphold a lower court ruling against a union's right to picket was incorrect and detrimental to labor rights. He contended that peaceful picketing is an essential part of collective bargaining and should be protected under the First Amendment as free speech. Furthermore, he disagreed with the majority’s view that such activities constituted unlawful coercion or intimidation towards non-union workers who crossed picket lines during strikes; instead, he saw it as legitimate pressure in pursuit of better working conditions and wages. In his view, this case represented an unwarranted intrusion by courts into labor disputes which could potentially undermine unions' ability to effectively advocate for their members’ interests.