Federal judge throws out 2 lawsuits brought by Terminal 6 operator, Port of Portland against ILWU and Pacific Maritime Association

Federal judge throws out 2 lawsuits brought by Terminal 6 operator, Port of Portland against ILWU and Pacific Maritime Association

The judge's opinion noted the union’s stoppages and slowdowns stemmed from an ongoing dispute over whether the ILWU should perform “reefer work” – the plugging, unplugging, maintaining and repairing refrigerated containers. (Beth Nakamura / The Oregonian)

http://www.oregonlive.com/playbooks-profits/index.ssf/2014/04/federal_ju...

By Allan Brettman | abrettman@oregonian.com
Email the author | Follow on Twitter
on April 04, 2014 at 5:57 PM

A federal judge overseeing several cases in an ongoing labor dispute at the Port of Portland's Terminal 6 has thrown out a pair of lawsuits brought by the Port and the terminal's operator.
U.S. Dist. Court Judge Michael Simon dismissed an antitrust claim against the International Longshore and Warehouse Union and the Pacific Maritime Association.
Simon also dismissed the Port's claim that the union and the association had intentionally interfered with the Port's contractual relationships.
However, the judge did not dismiss ICTSI Oregon Inc.'s claim against the association alleging "breach of fiduciary responsibility."
The judge's rulings, issued last week, stemmed from June 2012 lawsuits the ILWU and maritime association filed against ICTSI seeking court enforcement of the parties' collective bargaining agreement. ICTSI countersued the association and union, alleging federal antitrust violations.
Leal Sundet, a longshoreman who resides in Mulino and who serves as ILWU's west coast Committeeman, praised the ruling in news release.
"ICTSI's attack on the decades old collective bargaining relationship between the ILWU and its own employer association, PMA, demonstrates ICTSI's arrogance and complete disregard for the rules of engagement here in the United States," Sundet said.
ICTSI Oregon Inc., which has operated the Port's Terminal 6 container yard since February 2011 under a 25-year lease, is a subsidiary of International Container Services Inc., which is based in The Philippines.
"The Port respectfully disagrees with Judge Simon's recent rulings regarding some of the legal theories asserted by ICTSI Oregon, Inc. and the Port," spokesman Josh Thomas said in a written statement.
"The main claims against the International Longshore and Warehouse Union and its locals remain. The Port and ICTSI Oregon, Inc. are pursuing statutory damage claims against the ILWU asserting the union's illegal boycott and slowdowns at Terminal 6 that began in June 2012.
"Judge Simon has put those damage claims on hold until a final ruling by the National Labor Relations Board on pending unfair labor practice charges. An NLRB administrative law judge issued a decision last August finding the ILWU guilty of committing unfair labor practices and that decision is now on appeal to the full National Labor Relations Board."
While the nearly 50-page opinion digs deeply into legal nuance, rejection of the antitrust claim also clearly described union actions on the waterfront.
"The alleged work stoppages, slowdowns and filing of grievances by ILWU are traditional union activity, done for the purpose of trying to preserve jobs for ILWU workers," the ruling says, concluding the activities are exempt from federal antitrust law.
The opinion noted the union's stoppages and slowdowns stemmed from an ongoing dispute over whether the ILWU should perform "reefer work" – the plugging, unplugging, maintaining and repairing refrigerated containers. Gov. John Kitzhaber last December declared the ILWU should do that work and not the International Brotherhood of Electrical Workers.
The judge, in rejecting the antitrust claim, noted that Pacific Maritime Association "has more than 70 members who are competitors with one another, and thus does not fall within the classical definition of a 'monopoly' under federal antitrust law." Those members include ICTSI.
In a victory for ICTSI, the judge rules the maritime association "acted in bad faith or unfairly represented" the Terminal 6 operator when neither ICTSI nor the Port were invited to a May 24, 2012 nighttime meeting.
At that meeting, the Coast Labor Relations Committee, comprised of representatives of ILWU and PMA, agreed reefer work at Terminal 6 should be performed by ILWU-represented workers.
"PMA is ICTSI's agent with respect to the administration and management of the (coast labor relations committee) and if PMA is not going to present ICTSI's position, basic notions of fairness and due process require that PMA notify ICTSI of that fact and that ICTSI be given the opportunity to present its own position."
Separately from the court ruling, an independent review requested by Kitzhaber is underway to assess operating conditions and maintenance practices at the container terminal. The review is expected to be completed by the end of April.
-- Allan Brettman