The International Longshore and Warehouse Union (ILWU), a group representing dockworkers in the US, has reached a settlement with the International Container Terminal Services Inc.'s (ICTSI) Oregon affiliate concerning a labor dispute, for which the latter will receive $20.5 million based on the settlement terms.

“The settlement finally resolves all ICTSI’s claims against ILWU relating to the decade-long litigation captioned ‘ICTSI Oregon, Inc. v. International Longshore and Warehouse Union, et al., Case No. 3:12-cv-1058-SI’, pending in the United States District Court for the District of Oregon, in which a jury determined that ILWU and ILWU Local 8 engaged in unlawful labor practices,” read the ICTSI and ILWU's joint statement released on Friday, Feb. 2. 

According to the case file, the dispute, originally filed by the ILWU and the Pacific Maritime Association, “concerns who is entitled to perform two jobs of plugging, unplugging, and monitoring refrigerated shipping containers at Terminal 6 (T6) at the Port of Portland.”

The ILWU alleged that their “collective bargaining agreement” with ICTSI, who was the then-operator of T6 and a PMA member, required the shipping firm to assign reefer jobs to ILWU members.

However, the ICTSI, along with the Port of Portland and the International Brotherhood of Electrical Workers (IBEW) said that other contracts required reefer jobs to be assigned to IBEW members.

Numerous grievances and charges were filed by the parties regarding the alleged conflicts in the assignment of jobs as stipulated in varying contracts. ILWU, through an arbitration with the PMA, issued two decisions “directing ICTSI to assign the reefer work to ILWU members,” but ICTSI filed charges in response with the National Labor Relations Board (NLRB).

At the same time, the ICTSI also filed an unfair labor practice charge against the IBEW after the organization “threatened to picket” if ILWU members get the reefer jobs.

Counterclaims and other unfair labor practices were filed by the ICTSI with the NLRB against the ILWU.

“The NLRB requested a temporary restraining order and preliminary injunctive relief to enjoin the ILWU from engaging in alleged improper secondary boycott activity under its policies,” read the case.

The Board alleged that the ILWU “had engaged and were continuing to engage in work slowdowns, stoppages, withholding of services, threats, coercion and restraint of persons engaged in commerce or in an industry affecting commerce.”  

After various legal rulings with all parties concerned, this particular case was made by the ICTSI to move for “partial summary judgement that the Court hold as a matter of law that ICTSI is entitled to some compensatory damages beyond mere nominal damage for ILWU's violations.”

“The litigation, which was set for a retrial on damages, was stayed by the commencement of ILWU’s and Local 8’s bankruptcy cases on Sept. 30, 2023 and Oct. 18, 2023, respectively,” it explained. 

In accordance with the settlement, ICTSI will receive payment of $20.5 million. 

“The ILWU settlement arises from the parties’ participation in several days of mediation during ILWU’s chapter 11 bankruptcy case, which will be voluntarily dismissed as part of the terms of the settlement,” it added.