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UAW President Gamble Meets U.S. Attorney Probing Corruption At The Union

UAW President Gamble Meets U.S. Attorney Probing Corruption At The Union

The United Auto Workers’ President, Rory Gamble, met with U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, on Tuesday to discuss reform of the union, which may extend to oversight of future labor contracts.

What Happened

Schneider is heading the investigation into corruption at the auto workers union and urged the UAW last month to do more to reform itself. 

Gamble was appointed union president last November after Gary Jones, the predecessor to Gamble, was ousted following a corruption investigation. Jones has since pleaded guilty to embezzling more than $1 million of union funds, reported Reuters.

Gamble and Schneider issued a joint statement saying, “the parties addressed the concept of an independent monitor who could provide further assurance to the membership of concrete changes to the union so as to reduce the possibility of a reoccurrence of corruption.”

The union and the Department of Justice said they are considering third party oversight on any future agreement and that a number of reform options are available for further negotiations in the coming weeks. 

Why It Matters

Gamble began his term with a promise of reforming the UAW. Union membership fell by 8% in 2018, and increased by less than 1% in 2019, noted Reuters.

Schneider had said last month that a federal takeover of the union remains an option. In a prior instance, the United States government has overseen another union, the International Brotherhood of Teamsters, due to its connection with an organized crime between 1989 until 2015.

The Federal Bureau of Investigation is looking into illegal payoffs made to UAW officials by Fiat Chrysler Automobiles NV (NYSE: FCAU). 

As a result of the ongoing investigation, General Motors Company (NYSE: GM) is suing Fiat Chrysler, accusing its Italian-American rival of securing labor agreements by bribing UAW officials, which worked to the detriment of GM.

Image: UAW


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Posted-In: Reuters United Auto Workers unionNews Legal Management Media Best of Benzinga

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