Title: Dockworkers Union Files for Bankruptcy Amid Legal Dispute with Terminal Operator
Subtitle: International Longshore and Warehouse Union faces financial strain due to ongoing litigation
Date: [Current Date]
In a recent episode of “The Bottom Line,” Climate Depot publisher Marc Morano criticized Representative Alexandria Ocasio-Cortez (AOC) for purchasing a non-union-made electric vehicle (EV). However, another issue has taken center stage in the labor industry.
The International Longshore and Warehouse Union (ILWU), representing U.S. dockworkers on the West Coast, filed for bankruptcy protection last week. This development comes amidst an ongoing legal battle over unfair work slowdowns and stoppages.
The ILWU, which represents 22,000 dock and warehouse workers at ports along the West Coast from San Diego to Washington, including the nation’s busiest container port at Los Angeles and Long Beach, is currently in litigation with the Oregon branch of the International Container Terminal Services Inc. (ICTSI). The dispute revolves around alleged illegal work stoppages and slowdowns during labor disagreements.
Back in 2019, a federal court found that the ILWU had engaged in illegal labor practices from 2013 to 2017, resulting in the union being held liable for $93.6 million in damages against ICTSI Oregon. However, an Oregon judge later reduced the amount to $19.1 million, which ICTSI rejected. This rejection has led to a new trial being scheduled as ICTSI seeks damages ranging from $48 million to $142 million. On the other hand, the ILWU argues that damages should not exceed $3.9 million and cites a lack of funds to cover the legal expenses associated with the upcoming trial.
ILWU President Willie Adams expressed the union’s financial strain in a press release, stating, “While we have attempted numerous times to resolve the decade-long litigation with ICTSI Oregon, Inc., at this point, the union can no longer afford to defend against ICTSI’s scorched-earth litigation tactic.” He also highlighted the intention to use the Chapter 11 bankruptcy process as a means to bring resolution to the matter and ensure the union can continue its vital work.
Upon filing for Chapter 11 bankruptcy, the ILWU listed assets of over $11 million, including approximately $9.5 million in cash. This bankruptcy process will give the union an opportunity to restructure and address its outstanding debts with creditors.
The ILWU’s bankruptcy filing has been met with an opposing response from ICTSI, based in the Philippines and the parent company of ICTSI Oregon. The company stated to Reuters that the ILWU’s move was its “latest maneuver to avoid accountability.”
Recently, in August, the ILWU ratified a new six-year contract for U.S. dockworkers, which offered increased pay and benefits to its 22,000 employees across 29 ports along the West Coast. However, negotiations leading up to this new contract were not without challenges, as port terminal operators accused ILWU members of withholding labor and impeding operations, according to the Wall Street Journal.
This bankruptcy filing marks a significant setback for the ILWU and highlights the financial strain facing the union resulting from a protracted legal dispute. The outcome of the upcoming trial will have far-reaching implications for the ILWU and its ability to meet its obligations.
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