The Japan Business Federation (Nippon Keidanren) decided Monday to have West Japan Railway Co. refrain from participating in the business lobby's activities.
The decision followed the deadly derailment in late April in Amagasaki, Hyogo Prefecture.
The decision was in response to an earlier proposal made by Shojiro Nanya, chairman of the railway operator, to Keidanren Chairman Hiroshi Okuda on Friday.
Nanya will not resign from his post as a standing Keidanren director for the time being, but the federation said it will take additional disciplinary measures if necessary when the cause of the derailment comes to light.