PORTLAND, Ore. (AP) — The International Longshore and Warehouse Union filed a federal lawsuit Thursday over money the Port of Portland recently agreed to pay to its terminal operator to help cover losses caused by the work slowdowns and cargo diversions that highlighted this summer's labor strife.
The suit names the port and its executive director, Bill Wyatt. It seeks an injunction against the $4.7 million payment to ICTSI Oregon Inc., which operates the Port's container terminal.
The suit contends it is illegal for a public agency such as the Port of Portland to help one side or the other in a public sector labor dispute.
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"The Port's handout to ICTSI is not only illegal, it's wrong," said Leal Sundet, an ILWU coast committeeman. "Our lawsuit aims to stop the port's direct interference in a private labor dispute and to keep the money in public hands, where it can be invested in local infrastructure."
The port said in a statement the lawsuit is "without merit."
The ILWU and the terminal operator have been in a dispute over whether Longshoremen or union electricians should perform the work of plugging and unplugging refrigerated shipping containers. The terminal operator, citing the terms of its 25-year lease with the port, said the electricians should have the work.
The National Labor Relations Board ruled in favor of the electricians Monday, but the ILWU has said the fight is not finished.
The labor problems disrupted the flow of cargo at the port earlier this summer. Truck queues stretched for more than a mile in June because workers inside the container yard engaged in slowdown tactics. The decline in production led container ships to temporarily bypass Portland.
Sundet also criticized the port for spending public money to lure carriers back to Portland despite unresolved labor issues: "The port is literally bribing (Pacific Maritime Association) companies to call Portland."
A summary of the cost-sharing agreement between the port and ICTSI — presented at the Aug. 8 meeting of the Port of Portland Commission — said the $4.7 million was proposed "for the sole purpose" of offsetting a portion of the terminal operator's losses that are directly attributable to the labor dispute.
According to the port's statement, the money would come from the reimbursement of the terminal operator's rent payments, and no tax dollars would be used. "This has been incorrectly characterized as a lump sum payment to ICTSI Oregon, but no payment has been made as of yet," the statement said.
It adds that the $4.7 million is a cap, or possible maximum, with no guarantee that any or all of the money would be reimbursed.
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