U.S. Dockworkers’ Union, ILWU, Files for Bankruptcy Amid Ongoing Legal Battle

The International Longshore and Warehouse Union (ILWU), representing over 22,000 dock and warehouse workers on the West Coast of the United States, recently filed for bankruptcy protection due to mounting financial pressure resulting from an ongoing lawsuit. The legal battle involves allegations of unfair work slowdowns and stoppages, complicating labor relations along the vital trade routes of the West Coast.

The ILWU’s bankruptcy filing comes as the union faces litigation with the Oregon branch of the International Container Terminal Services Inc. (ICTSI) over alleged illegal work stoppages and slowdowns during labor disputes. The dispute traces its roots back to a federal court’s 2019 ruling that found the ILWU guilty of illegal labor practices from 2013 to 2017, involving work slowdowns and stoppages.

Initially, the court held the union liable for a staggering $93.6 million in damages against ICTSI Oregon, which operated a shipping terminal at the Port of Portland during the contentious period. However, an Oregon judge later reduced the damages to $19.1 million, a figure that ICTSI vehemently rejected, leading to the scheduling of a new trial. In this new legal phase, ICTSI seeks damages ranging from $48 million to $142 million, while the ILWU maintains that the damages should not exceed $3.9 million. The union has cited a lack of funds to cover the legal expenses associated with the impending trial.

ILWU President Willie Adams expressed the union’s position, 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 further explained that the Chapter 11 bankruptcy process would be used to develop a plan to resolve the matter and ensure the union can continue to serve its members and the community.

The ILWU’s Chapter 11 bankruptcy petition reveals that the union has assets exceeding $11 million, with approximately $9.5 million in available cash. This filing initiates a process that allows the ILWU to restructure its financial obligations and work towards a resolution with creditors.

Responding to the bankruptcy filing, ICTSI, a Philippines-based company and the parent of ICTSI Oregon, characterized it as the union’s “latest maneuver to avoid accountability.”

In a separate development earlier this year, the ILWU ratified a new six-year contract for U.S. dockworkers, which included increased pay and benefits for its 22,000 members across 29 ports along the West Coast. The negotiations for this contract began in 2022 and were marred by allegations of labor withholding and operational slowdowns, as reported by The Wall Street Journal.

The ILWU’s bankruptcy filing adds another layer of complexity to the ongoing dispute between the union and ICTSI, with implications for labor relations and the broader logistics industry on the West Coast. As the bankruptcy process unfolds, stakeholders will be closely watching how it impacts the resolution of the long-standing legal battle.