ILWU Sues Port of Portland Over Payments to Offset Labor Dispute Costs
The International Longshore & Warehouse Union filed suit in U.S. District Court, Portland, Ore., against the Port of Portland and Bill Wyatt, its executive director, saying they unlawfully gave nearly $5 million in public funds to ICTSI Oregon, Inc., a subsidiary of the private Philippines-based company International Container Terminal Services Inc. (ICTSI), and tens of thousands more to ocean carriers. The suit seeks an injunction against the expenditures.
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The suit said the Port Commission July 11 authorized paying tens of thousands of dollars to shipping lines "to help compensate them for their losses" due to "challenges" arising from the labor dispute between ICTSI and the ILWU at Terminal 6. Then, Aug. 8, the Port Commission authorized paying nearly $4.7 million to ICTSI Oregon "to offset a portion of ICTSI Oregon's incremental operating costs and lost revenues directly attributable to the labor dispute."
The lawsuit said the Port's actions violate federal labor law and Article XI, § 9 of the Oregon Constitution. It said offsetting private company losses arising from the labor dispute is unlawful because the gifting improperly interferes with and alters the economic tools and pressures between labor and management.