The International Longshore and Warehouse Union (ILWU), representing U.S. dockworkers, has filed for chapter 11 bankruptcy protection to address ongoing litigation with the Oregon affiliate of International Container Terminal Services Inc (ICTSI). With assets and liabilities ranging from $1 million to $10 million, the ILWU hopes to resolve the decade-long litigation and continue its vital work for members and the community. The union has been accused of unlawfully slowing down operations at the Port of Portland, previously managed by an affiliate of the Philippines-based maritime company, and a trial was imminent. ICTSI has yet to comment on the matter.
The ILWU’s decision to file for chapter 11 bankruptcy protection comes as a result of its inability to sustain the legal battle against ICTSI’s aggressive litigation tactics. Despite multiple attempts to resolve the dispute amicably, the union claims that it can no longer afford to continue defending itself. By utilizing the chapter 11 process, the ILWU aims to develop a plan to bring this matter to a close while safeguarding its essential role in serving its members and the community.
The pending litigation revolves around allegations that the ILWU engaged in illegal activities, deliberately slowing down operations at the Port of Portland over several years. The port was controlled by an affiliate of ICTSI back then. The ILWU, an organization representing more than 4,000 members across the United States and Canada, intends to file customary motions with the court to maintain its cash management system during the reorganization process. In August, the union ratified a six-year contract enhancing pay and benefits for its 22,000 employees stationed at 29 ports spanning from California to Washington State.
