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Monday, 21 December 2020 17:02

UAW, Feds Reach Settlement After Corruption Scandal: Here Are the Details

Written by Eric D. Lawrence, Detroit Free Press
UAW International President Rory Gamble, left, and U.S. Attorney Matthew Schneider on Dec. 14 announced a civil settlement. UAW International President Rory Gamble, left, and U.S. Attorney Matthew Schneider on Dec. 14 announced a civil settlement. Eric D. Lawrence/Detroit Free Press

Index

...direct elections of the UAW's top leaders, and Houldieson was asked what he thought about the agreement stopping short of ensuring that outcome.

 

"I'm all for democracy, but one of the things about democracy is that all perspectives need to have a chance to be presented to the membership," he said, noting that Gamble had pledged to educate members on the issues.

 

"President Gamble made it clear he intends to educate the membership on their point of view. We would like the opportunity as an opposing caucus to educate the membership as well," Houldieson said. 

 

Democratic U.S. Rep. Debbie Dingell of Dearborn, MI, weighed in on the agreement, noting its significance.

 

“Generations of UAW workers have labored long hours to keep our nation at the forefront of the global auto industry. With this agreement, the UAW has chosen the accountability and transparency necessary to restore the faith of their loyal members in Michigan and around the country,” Dingell said.

 

The corruption scandal has been seen as both an example of greed and as an abuse of power among those involved. The corruption included misuse of worker training funds for fancy dinners and booze, a Ferrari, jewel encrusted pens and even a mortgage. There were kickbacks on watch contracts. Union funds were used to pay for golf and lengthy rental stays in Palm Springs. Millions of dollars were involved.

 

It ensnared both former union leadership and Fiat Chrysler Automobiles executives. While only former FCA officials have faced charges, Schneider said Ford is under investigation, too.

 

General Motors, although not a target of the investigation, has been connected through the UAW-GM Center for Human Resources, a large complex on the Detroit River that has now been sold for...


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