Federal government selects former US banking regulator as UAW monitor
The US Attorney’s office selected the high profile ex-banking regulator Neil Barofsky as its choice for independent monitor for the United Auto Workers in a court filing Monday. If confirmed by the court, Barofsky will be responsible for overseeing enforcement of the six-year consent decree signed in December by the UAW and federal prosecutors.
The decree put an end to a massive federal corruption probe, which led to the convictions of 15 top UAW officials and corporate executives. UAW officials pleaded guilty to accepting millions of dollars in bribes from Fiat Chrysler (now Stellantis), stealing millions in union dues to finance lavish getaways to Palm Springs resorts and the use of third-party apparel contracts as a conduit for pocketing millions more in kickbacks.
Fiat Chrysler pleaded guilty to conspiracy, admitting that it paid off leaders of the United Auto Workers to try to win concessions in negotiations covering thousands of factory workers.
Detroit A Fiat Chrysler U.S. executive admitted Monday the automaker conspired to break federal labor laws by paying more than $3.5 million in bribes to union leaders, marking a new stain for an auto industry beset with scandals in recent years involving vehicle emissions and faulty equipment implicated in hundreds of deaths.
In pleading guilty to one count of conspiracy to violate the Labor Management Relations Act, the transatlantic automaker also agreed to pay a $30 million fine to settle a criminal investigation into auto executives breaking federal labor laws. The fine is part of a broader settlement with federal authorities that includes the appointment of an independent monitor for three years to oversee company compliance with labor laws and oversee dissolution of a joint training center the United Auto Workers operated with Fiat Chrysler, now part of Stellantis NV.
Fiat-Chrysler admitted it paid off leaders of the United Auto Workers in an effort to win concessions in contract negotiations for thousands of factory workers.