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The International Longshore and Warehouse Union and ICTSI Oregon, Inc. have reached a $20.5-million settlement to resolve a labor dispute
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ICTSI will receive the $20.5 million payment, ending a prolonged legal battle between the two entities
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The settlement follows a jury’s determination that ILWU and its local chapter in Portland engaged in unlawful labor practices that led to a series of litigations and bankruptcy filings
The International Longshore and Warehouse Union (ILWU) and ICTSI Oregon, Inc., a unit of International Container Terminal Services, Inc. (ICTSI), have reached a settlement totaling US$20.5 million to resolve a labor dispute.
ICTSI will receive the $20.5 million payment, ending a prolonged legal battle between the two entities.
The settlement ends all ICTSI claims against ILWU pertaining to the litigation pending in the United States District Court for the District of Oregon. The litigation stemmed from a jury’s determination that ILWU and its local chapter in Portland (Local 8) had engaged in unlawful labor practices.
Following the announcement of the settlement, a joint statement issued by ICTSI and ILWU revealed that the protracted litigation—which was scheduled for a retrial on damages—was halted due to the commencement of ILWU’s and Local 8’s bankruptcy cases on September 30, 2023, and October 18, 2023, respectively.
The resolution of the ILWU settlement is attributed to the parties’ participation in several days of mediation during ILWU’s Chapter 11 bankruptcy case, which will be voluntarily dismissed as part of the settlement terms. ILWU had filed for Chapter 11 bankruptcy protection in federal court in September 2023.
The ILWU—a prominent labor union representing dock workers on the West Coast of the US, Hawaii, Alaska, and British Columbia, Canada—had initiated work stoppages in June 2012. The union’s grievances included claims of jurisdiction over jobs related to plugging and unplugging refrigerated containers, safety concerns, and discontent with ICTSI’s management of the terminal.
The prolonged conflict resulted in reduced port operations and led shipping lines to cease calling at the port.
The dispute had its roots in the Port of Portland and ICTSI Oregon’s lease agreement signed in 2010, marking ICTSI’s first foray into the US market and the most substantial financial transaction in the history of the city’s maritime port.
In March 2017, ICTSI Oregon officially terminated its 25-year lease agreement to operate Terminal 6, while affirming its commitment to addressing labor issues. Subsequently, ICTSI counter-sued ILWU and Local 8, alleging significant losses amounting to as much as $142 million.
READ: ICTSI subsidiary ends contract with Port of Portland
The legal battle gained further traction in November 2017 when the US Court of Appeals for the District of Columbia (D.C.) Circuit unanimously upheld two National Labor Relations Board (NLRB) decisions, affirming ILWU’s violations of federal labor laws. The court upheld the NLRB’s findings, which included deliberate work stoppages, false safety claims, and coercive conduct against ICTSI Oregon and its customers.
