Spotlight
6 The Journal of Commerce
|
November 25 2019 www.joc.com
What peak season?
It's shaping up to be an unfulfilling
holiday freight season for carriers, with
cargo owners shipping fewer containers
on rail than the past two years and
spot truckload rates underwhelming.
Truckload dry-van spot rates have cooled
enough to imply the June and September
bumps were a false glimmer of hope.
Still, it's a positive for cargo owners
Lawsuit rattles ILWU
Could a lawsuit bankrupt the International
Longshore and Warehouse Union? Yes, a federal
judge warned on Nov. 8 in delaying the filing of
a $93 million jury award against the union for
unlawful labor practices that led to the loss of
the sole container service in the Port of Portland,
Oregon, in 2016. Judge Michael H. Simon, sitting
in Portland, granted the union's request for a
delay while it argued for a retrial, saying the
award is "quite high and may result in the
bankruptcy" of the 84-year-old union, according
to an order filed with the court. The federal jury in
Portland this month found the ILWU and its local
chapter at the port, Local 8, engaged in unlawful
labor practices at times between Aug. 14, 2013
and March 31, 2017, slowing productivity in a
dispute over whether it had jurisdiction over jobs
managing refrigerated containers. The jury also
found those labor practices were a major factor
in causing damages to ICTSI Oregon, the port's
terminal operator at the time. The judgment is
more than eight times the union's 2018 income,
according to the ILWU's latest filing with the US
Department of Labor (DOL). The $93 million
ruling deals a major blow to the ILWU just four
months aer it failed to prevent APM Terminals
from securing the go-ahead to proceed with
installing hybrid electrical charging stations for
automated straddle carriers at the operator's Los
Angeles terminal. The ILWU is responsible
for 55 percent of the cost of the damages, or
$51.15 million, and Local 8 is responsible for
45 percent, or $41.85 million, according to the
ILWU. The ILWU had assets of $8.04 million at the
end of 2018, according to a report the union filed
with the DOL in March. The union had receipts
of $8.16 million in 2018, and expenditures of
$8.38 million, the filing stated. ILWU president
William E. Adams told members that the ILWU
Longshore Division will hold a special caucus
to discuss the outcome of the trial, which he
said was based on "flawed" conclusions by the
National Labor Relations Board and "unreliable
evidence" of the damages suffered by ICTSI. He
added that the union will appeal "if necessar y."
The Journal
of Commerce
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