The United States Attorney’s Office in Detroit said on Monday the United Auto Workers (UAW) union has agreed to independent oversight to resolve a five-year federal corruption investigation that ensnared two of the union’s former presidents.
US Attorney Matthew Schneider said the UAW would pay $1.5m to settle tax issues, make significant reforms and be overseen by an independent monitor for six years. Schneider said the civil settlement caps the investigation into the union but said inquiries could continue against individuals.
“The union has had a problem with fraud, embezzlement and corruption,” Schneider told a news conference. “There are a few bad apples and those people have been convicted.”
UAW President Roy Gamble Federal prosecutors announced a settlement with the embattled United Auto Workers union that includes an independent monitor to fight corruption that ran rampant among executives in recent years. Under a consent order filed Monday by both parties which must be approved by a judge the appointed monitor would have disciplinary powers within the UAW and could investigate possible fraud or corruption. Additionally, the union will conduct a secret-ballot referendum to see if members prefer to vote directly for their leaders instead of continuing to let delegates do so. The proposed settlement to resolve a criminal and civil investigation of the UAW comes after a tumultuous and corrupt stretch for a union that long had enjoyed an honest reputation. The years long FBI probe resulted in more than a dozen convictions of auto industry figures, including former UAW presidents Gary Jones and Dennis Williams. Current union President Rory Gamble isn t
Credit UAW
Five years after the FBI began investigating corruption in the leadership ranks of the United Auto Workers union, the U.S. Justice Department and the union have agreed to a consent order that places the union under the oversight of an independent monitor.
The investigation began with charges against a former Fiat Chrysler official, and spread from there, ending with two former UAW presidents, Gary Jones and Dennis Williams, pleading guilty to embezzlement, among other crimes.
The monitor will be in place for six years, at least, unless he or she determines the oversight is no longer necessary sooner than that. The monitor will oversee most functions of the union except its contract negotiations with employers such as Detroit automakers; that is, unless there is evidence of corruption or fraud in those negotiations.
Image credit: Jake Neher/WDET
The resolution stems from a long-running investigation into the UAW that has lead to 15 convictions so far.
Federal prosecutors and the United Auto Workers union (UAW) have reached a tentative settlement to address wide-spread corruption issues within the organization. It’s the result of a multi-year investigation the public was first made aware of in 2017.
The agreement will allow the UAW to avoid a government takeover. Among the terms, it must accept a federal monitor who will watch the union for six years.
“This will show our members that the things we’ve done over the past 13 months were very value-adding.” – Rory Gamble, UAW President
US Justice Department shuts down UAW corruption investigation, praises union “reforms”
In a deal worked out between federal prosecutors and the United Auto Workers (UAW) union, the Justice Department said it would wind up its more than five-year investigation of the UAW in exchange for a few token reforms.
To date, the investigation has led to the conviction of 15 people, including former UAW Presidents Gary Jones and Dennis Williams as well as Joe Ashton, former UAW president for General Motors, and Norwood Jewell, former UAW vice president for Fiat Chrysler. The investigation led to jail time for three Fiat Chrysler executives, other ranking UAW officers and the widow of late UAW vice president for Fiat Chrysler General Holiefield.