UAW-corporate corruption scandal spreads to Ford and GM
4 November 2017
The United Auto Workers (UAW) in the United States is the subject of an expanding scandal that has cast a light on its corrupt and incestuous relationship with the Big Three auto companies.
In late July, a federal indictment was unsealed detailing charges against top UAW officials and a corporate executive at Fiat Chrysler (FCA). On Tuesday, the Detroit News reported that the FBI is adding Ford and General Motors to its investigations into a network of bribes funneled through training centers jointly operated by the UAW and the auto companies.
The indictments involving FCA revealed that leading UAW executives received over $4.5 million in payouts from company officials. The money was allegedly transmitted through the joint training center and laundered through several charities, children’s centers and hospice programs. Union officials lavishly spent money officially earmarked for worker training on themselves and their relatives, purchasing furniture, jewelry, designer clothing, international vacations and other luxury items.
Those charged so far include Monica Morgan, the wife of former UAW Vice President General Holiefield, who would be indicted but for his death in 2015; former UAW negotiator Virdell King; Chrysler lead negotiator Al Iacobelli; and Chrysler financial analyst Jerome Durden. Durden and King have both pleaded guilty to corruption charges as part of a deal with prosecutors. UAW Vice President for Chrysler Norwood Jewell is also involved, though he has not been charged, as he allegedly received gifts purchased with money stolen by other officials.
According to a report in the Detroit News, the investigation is now expanding to other top UAW executives, including UAW Vice President for GM…