Federal investigators have begun interviewing General Motors employees as part of its corruption investigation into the United Auto Workers union.
The FBI’s investigation into the UAW was originally centered around Fiat Chrysler and the UAW Employee Training Center it operated with the union. The UAW was found to have been misusing funds that FCA was funneling through the employee training center, which it jointly operated with the union. The FBI probe eventually ballooned into a general corruption investigation into the UAW and lead to the arrest of several top UAW officials, including former president Gary Jones.
Gary Jones
Now the FBI is putting GM under the microscope as part of the ongoing corruption investigation. According to The Wall Street Journal, federal investigators are interviewing current and former GM employees that worked in or close to the automaker’s labor relations department. WSJ’s report also says the FBI has “raised questions about interactions between GM’s top bargainers and their counterparts at the UAW.”
The investigation centers on the GM-UAW Center For Human Resources – a jointly run employee training center that is similar to the one that was at the center the FCA-UAW investigation. The GM employee training center was the best-funded of the UAW’s Detroit employee training centers, according to The Detroit Free Press, with GM providing it with an average of $50 million a year over the past decade. The FBI has secured documents related to the training center’s financial transactions, charitable donations, vendor contracts and travel spending.
GM UAW training center
In a statement, GM spokesman Jim Cain said the company has cooperated with the FBI’s investigation in recent years.
“The federal investigation has made it clear that the Center for Human Resources and the people it served were victimized by corrupt former union officials,” Cain said. “GM is grateful for the government’s efforts to expose corruption and we have been fully cooperating with the government for nearly three years.”
GM is currently suing FCA, accusing it of paying off UAW officials in order to gain preferential treatment during the 2009, 2011 and 2015 collective bargaining agreements. GM’s lawsuit also accuses FCA of attempting to weaken GM’s financial standing through the corrupted bargaining processes in an attempt to force a merger between the two automakers.
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Source/photo: The Detroit Free Press, Google Maps
Comments
Oh Boy
This center had a reputation of being staffed with UAW friends and family. Closing this was one of the key issues in the strike last year. There’s been a storm cloud over these centers for a long time. If somebody is demanding special treatment to maintain labor relations and fund questionable activities, how does blame go to those who are taken advantage of?
These jackasses are so jealous of Chrysler gaining ground on them that they dug their on hole. When it’s all said and done, the FCA-PSA merger is gonna put Chrysler way past general not specific motors globally. After all we all know that the merger and Ram trucks outselling Chevy trucks earlier in the year is why they stirred up manure and got it stinking in the first place.
Before a company files frivolous lawsuits, it is a good idea to make sure your house is clean. This makes GM look pretty damn bad.
@Tigger, You really did not understand what you were reading. The article states GM is very happy and WELCOME the FBI into investigating the UAW on how UAW was spending money from this fund. The article states GM has been cooperating with the Feds for three years on these issues.
With all due respect sir, what else could GM say?
Enough, the UAW is a cancer and needs to die. There are probably more folks working in Auto Mfg now that are not union vs union. With the Dept of Labor, etc… there are safeguards for employees and the union is nothing more than an “us vs them” gestapo. IT cost GM billions during a totally unnecessary strike and what was gained? I’d move every UAW job out of the US and kill it, then I’d move them all back to right to work states or on the condition that we’re paying “this wage for this role”. OR the employees can elect to decertify the union. No more extortion from criminal thugs…
Union leadership, like GM’s leaves a lot to be desired.
But remember if the union implodes, the ones at the top will be sure to stuff their pockets with money and be set for life. The only ones that would be punished are the 90% of union members that come into work day in and day out as well as the dozens of communities that rely on GM jobs.
All the more reason for the employees to decertify the union. You do not represent us any longer, and no more union dues. They should be forced to return the dues to the employees. Hey UAW if you REALLY care about the members, return their dues and go find other work… never going to happen, they’re corrupt…
It’s a shame the UAW has come down to this. My wife worked for GM for over 30 years. Had it not been for the UAW, many folks would have been worked to death. Over the last few contracts etc, the UAW, has been holding the Big 3, hostage. it’s sad to see what the union has become. Absolute power, corrupts absolutely. This, is exactly what the left sees as wrong with the capitalistic way of doing things. Wake up America! It’s not too late. Just sayin’
Except the left is all about collectivism, this group vs that group. The DemoRat Party gets revenue from the UAW and all other unions, the Repubs get none, or if any, very little. Capitalism is about me making something for you to buy, self interest creates value for those that want stuff. I perceive a need, then fill it, then create wealth. THAT is Capitalism. DemoRats are about you’re a moron or too weak to earn a living because of the horrible Repubs and you need US to fight for you or they’ll take all the $$. Trump unleashed the economy for everyone and that is a fact. DemoRats and big Govt or empower yourself? Thats why no transplant auto factory wants a union, they create more problems and those that perform get promoted vs simple sonority. No one would have been “worked to death” and if she was near death, find a new job? Become a teacher, go to school and become a lawyer, its as if some see zero options in life. This isn’t some other nation where you have no choices, America is about freedom to become whatever you want… Give them fish and they’re beholden to you, OR teach them to fish and everyone is able to support themselves… DemoRat vs Republican
Any evidence uncovered or handled by the FBI is suspect.
I am no supporter of the UAW, but they are a blip on the radar when it comes to violating the law. The FBI is the undisputed champ of violating civil rights.
Certainly under DemoRat Administrations… clear proof of that….
That is the reason I don’t call them GM motors anymore. I call it Obama Motors.