ICTSI granted favorable ruling vs Portland union

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) on Wednesday said subsidiary ICTSI Oregon, Inc. won a favorable ruling against the International Longshore and Warehouse Union (ILWU) before the US Court of Appeals in Washington, DC.

“The US Court of Appeals found ILWU guilty of violating federal labor laws and upheld two National Labor Relations Board ( NLRB) decisions declaring that ILWU engaged in deliberate work stoppages and slowdowns, made false safety claims, and engaged in other coercive conduct against ICTSI Oregon and its customers,” the port giant told the Philippine stock exchange on Wednesday.

To recall, ICTSI Oregon and Port of Portland inked an agreement in 2010, with the company taking over Terminal 6’s operations in 2011.

However, the company’s problems began in June 2012 when the ILWU leaders wanted their members to be assigned the jobs involving handling of refrigerated containers, which have been done by the port electricians since 1974.

This led to both parties filing court cases, while ILWU members began work stoppages and slowdowns at Terminal 6. As a result, Hanjin Shipping withdrew its service from the terminal in March 2015, with other carriers following suit.

In March this year, ICTSI decided to terminate its contract to operate the container facility at Terminal 6.

Under the agreement, ICTSI paid $11.45 million in compensation to the Port of Portland “to rebuild business,” as well as additional container handling equipment, spare parts and tools at the terminal, which are worth an estimated $10 million.

The company, led by tycoon Enrique K. Razon, Jr., reported a 5% increase in net income attributable to equity holders to $149.3 million for the first nine months of 2017, from $141.9 million during the same period a year ago.

ICTSI attributed the higher earnings to the “continuing rampup at the new terminal in Matadi, Democratic Republic of Congo; strong operating income contribution from the terminals in Iraq, Mexico, Honduras, Brazil and Madagascar; and the one- time gain on the termination of the sub- concession agreement in Lagos, Nigeria.”