The International Longshore and Warehouse Union (ILWU), which represents U.S. dockworkers, has filed for Chapter 11 bankruptcy protection in order to resolve a pending litigation with the Oregon affiliate of International Container Terminal Services Inc (ICTSI). The union has stated that it can no longer afford to defend against ICTSI’s litigation tactics and intends to use the bankruptcy process to bring the matter to a resolution. The ILWU has listed its assets and liabilities as being in the range of $1 million to $10 million.
The union has been facing legal challenges regarding allegations that it illegally slowed down operations at the Port of Portland over several years. According to the ILWU International President Willie Adams, they have attempted numerous times to resolve the decade-long litigation with ICTSI Oregon. The ILWU, which has over 4,000 members across the U.S. and Canada, plans to file customary “First Day” motions with the court to maintain its cash management system during the reorganization process. ICTSI has not yet responded to requests for comment.
In August, the ILWU ratified a six-year contract for U.S. dockworkers that included improved pay and benefits for 22,000 employees at 29 ports from California to Washington State. The union’s decision to file for bankruptcy protection is seen as a strategic move to resolve the pending litigation and ensure the union can continue its important work for its members and the community.
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