WASHINGTON (AP) -- The Supreme Court on Thursday abandoned a 96-year-old ban on setting price floors in a case involving a labor union and railroads.
In a 5-4 decision, the court said that agreements on minimum prices are legal if they promote competition. The Brotherhood of Locomotive Engineers and Trainmen had brought the case to defend its right to establish lower wage rates in collaboration with railroad management.
The United Transportation Union opposed the agreement arguing it improper collusion between labor and management. But the conservative court sided with the BLET and management and said that if the railroads and its labor union of engineers want to collaborate to lower wage rates that it is lawful.
BLET President Don Hahs praised the decision as did BNSF Railway CEO Matt Rose.