THE US west coast dockers union has filed for Chapter 11 protection in US Bankruptcy Court, the result of law suits arising from work stoppages and slowdowns from 2012-17 in Portland, Oregon, reports New York's Journal of Commerce.
The US District Court in Portland in 2019 initially found the International Longshore and Warehouse Union (ILWU) liable for US$93 million in damages to ICTSI operations, but the award was later reduced to $19 million.
While sources say the complex case before the bankruptcy court could take weeks to resolve, it is not expected to result in cargo-disruptions by union members.
"I would not expect there will be any job actions," said James McKenna, president of the Pacific Maritime Association (PMA), which represents terminal operators and shipping lines.
Mr McKenna said that in the remote possibility the ILWU engages in any job actions, the grievance procedure in the new coast wide contract, which was ratified before Labour Day, would allow arbitrators to step in immediately to stop any interruptions.
Terminal operator Manila-based ICTSI Portland told the Journal of Commerce it does not believe the ILWU's attempt to avoid the $19 million court-ordered payment via bankruptcy will succeed.
"The facts have already been legally established before the National Labour Relations Board and in numerous court proceedings, including before a Portland, Oregon jury, which in 2019 found the ILWU liable for its illegal conduct," said ICTSI.
ILWU bankruptcy 'bid to avoid paying US$19 million legal damages'