In the United Steelworkers of America v. American Manufacturing Co., 1959, the Supreme Court ruled in favor of enforcing arbitration as a means to resolve labor disputes. The case arose when an employee was injured at work and sought compensation from his employer, American Manufacturing Company. The company refused to pay on grounds that the injury did not occur within their premises or during working hours. As per their collective bargaining agreement with United Steelworkers Union, such disputes were subject to arbitration but the company resisted this process arguing that arbitrability should be determined by courts rather than arbitrators themselves. The Supreme Court disagreed with this stance stating that it is for arbitrators and not courts to decide whether a particular grievance falls within their jurisdiction under a given contract unless there's clear evidence showing parties intended otherwise. This decision reinforced federal policy favoring industrial self-regulation through arbitration over judicial intervention in labor-management relations.

In the dissenting opinion for United Steelworkers of America v. American Manufacturing Co., Justice Frankfurter argued that the court had overstepped its bounds by deciding on an issue that should have been left to arbitration, as outlined in the collective bargaining agreement between the union and company. He contended that it was not within their jurisdiction to determine whether or not a grievance existed; this responsibility fell solely on arbitrators selected by both parties involved. The justice also expressed concern about potential implications of such intervention, warning against judicial intrusion into labor disputes which could undermine faith in arbitration processes and disrupt industrial peace efforts. Furthermore, he believed this decision set a dangerous precedent where courts might feel compelled or justified to intervene prematurely in future cases involving labor grievances before they've gone through proper channels of resolution like negotiation or arbitration.