In the 1943 case of Brotherhood of Railroad Trainmen, Enterprise Lodge, No. 27 et al. v. Toledo, Peoria & Western Railroad, the United States Supreme Court ruled in favor of a union's right to strike under certain conditions despite an existing collective bargaining agreement with their employer. The railroad company had argued that strikes were prohibited by the Railway Labor Act and that they violated the terms of their contract with the union; however, these arguments were rejected by Justice Frank Murphy who wrote for a unanimous court. The decision clarified two key points: first, it confirmed that workers have a fundamental right to strike which cannot be abridged or denied even when there is an ongoing contractual relationship between them and their employers; secondly it established that this right can only be exercised if all other avenues for resolving disputes - including negotiation and arbitration - have been exhausted without success. This ruling was significant because it reinforced labor rights at a time when unions were gaining strength across America but also faced considerable opposition from businesses seeking to limit their power and influence over workplace conditions.

In the dissenting opinion for Brotherhood of Railroad Trainmen, Enterprise Lodge, No. 27 v. Toledo, Peoria & Western Railroad case in 1943, it was argued that the majority's decision to allow a federal court to issue an injunction against a railroad union strike overrode state law and violated principles of federalism. The dissent contended that Congress had not explicitly given federal courts this power in labor disputes under the Railway Labor Act and thus such authority should remain with state courts as traditionally held. It also expressed concern about potential abuse of judicial power if left unchecked by legislative limits or guidelines on when strikes could be enjoined federally. Furthermore, it disagreed with the majority's interpretation that railway operations were so integral to interstate commerce as to warrant overriding states' rights in all instances without clear congressional mandate.