ILWU files for Chapter 11 bankruptcy

ILWU says it will continue to operate as usual

The ILWU dockworkers union said Friday that it has commenced a Chapter 11 case under Subchapter V of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of California, San Francisco Division.

The ILWU (International Longshore and Warehouse Union) said that intends to utilize the bankruptcy process to resolve pending litigation with ICTSI Oregon, Inc., that, it says, has hindered it since 2012. The ILWU is confident that this process will provide the most favorable course of action to safeguard the union’s future. Additionally, the ILWU says that it will continue to operate as usual fulfilling its obligations to its members, locals and affiliates, employees, and the other groups it serves.

“Since 1937, our democratic, rank-and-file union has fought to protect the interests of ILWU members, including bargaining for fair wages, benefits, and working conditions. We have been extremely successful and are over 40,000 members strong, and we are proud of the work that our members do each and every day across our 50 local unions and affiliates,” said ILWU President Willie Adams. “While we have attempted numerous times to resolve the decade-long litigation with ICTSI Oregon, Inc., at this point, the union can no longer afford to defend against ICTSI’s scorched-earth litigation tactic. We intend to use the chapter 11 process to implement a plan that will bring this matter to resolution and ensure that our union continues to do its important work for our members and the community. The officers are confident that we are taking the right step to put our organization on the best path forward – and we are optimistic for all that is ahead.”

As part of the reorganization process and to minimize any disruption throughout the restructuring process, the ILWU said that it would file customary “First Day” motions with the court to maintain its cash management system and to continue honoring its employee and payroll obligations in the ordinary course of business.

The union is represented in the case by Pachulski Stang Ziehl & Jones LLP as legal counsel.