THE International Longshore and Warehouse Union (ILWU) has filed a lawsuit questioning the legality of subsidies the port of Portland awarded to shipping lines between 2012 and 2013, claiming it was not clear if the manner in which the subsidies were accounted for was legal under existing Oregon case law.

"We are hesitant to expand Oregon law in a manner that may be contrary to Oregon's wishes and in an important subject matter in Oregon's history," the 9th Circuit said. "If the Oregon Supreme Court declines certification, we will resolve the question according to our best understanding of Oregon law."

The lawsuit grows out of a dispute between the ILWU, the port, and terminal operator ICTSI Oregon. The fallout was over whether work involving refrigerated containers at Terminal 6 ought to be performed by ILWU members or members of the International Brotherhood of Electrical Workers, reported American Shipper.

As a result of the labour disputes and slowdowns by the ILWU at Terminal 6, the court noted the port of Portland "implemented four incentive and subsidy programmes to keep Terminal 6 operating at financially sustainable levels."

The ILWU challenged those subsidies, questioning whether they violated Article XI, Section 9 of the Oregon Constitution, which bars a state public entity from raising money for, or loaning its credit to, or in aid of, any company.

In any case, the subsidies failed to prevent the port losing major customers at Terminal 6, namely Hanjin Shipping, Hapag-Lloyd and Westwood, who abandoned the port in 2015 and 2016.