United Auto Workers Settle Massive Union Corruption Issues

Written on .

The United States Department of Justice (DOJ) has settled massive allegations against the United Auto Workers Union (UAW), exposing what federal prosecutors described as a culture of corruption among its leadership built around kick-back schemes, embezzlement and other illegal activities. The investigation has led to 15 convictions and some union members say the situation has taken away trust in the union's leadership.

A proposed settlement includes a six-year period of independent oversight by a court-appointed monitor. Further provisions in the proposed settlement require a way for union members to potentially change the way it elects its leadership. 

The investigation is one of the largest of a major labor union in decades and has led to the convictions of two former UAW presidents. Further investigations are ongoing and there may be future criminal charges. And yet, many considered the proposed settlement a victory for the union, as federal prosecutors say they will not pursue a racketeering lawsuit against the union itself. 

The prosecution tied the UAW'sleadership to a scheme where hundreds of thousands of dollars in union funds were used to pay for villas, golf outings, expensive meals, cigars and other expenses for labor leaders and their associates. The immediate past UAW president apologized to UAW members and asked for forgiveness. 

This is part of our January 2021 Newsletter.

Click here to download the newsletter PDF

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

Recent Content

Women signing papers at a table indoors

Trump Regulation Requiring EEOC to Conciliate Rescinded

The current administration has moved rapidly to eliminate the Trump administrators, even during the terms of their employment, and to eli...
Port-au-Prince, Haiti - Outdoors, houses on the hillside

TDPP Extended for Six Countries

More than 400,000 citizens of six foreign countries who live and work in the U.S. under Temporary Protected Status (TPS) are able to stay...
a group of people protesting outdoors, with jackets in the cold

Issues Related to Safety and Work-related Issues, Pertaining to Walk-outs, Sit-ins, Protests, Etc

The current situation is an appropriate time to remind employers of their obligations under federal laws dealing with not only safety pro...
Covid Vaccine Clinic, Parking Sign, Outdoors

Biden Issues Executive Order Attempting to Require Covid Vaccination & Testing

In what many consider President Biden's most bold move regarding COVID-19, he issued an Executive Order on September 9, 2021 in an effort...
candles burning on a rack indoors in the dark

Dealing With Religious Objections to a COVID-19 Vaccine Requirement

In our discussions of rules mandating COVID-19 vaccines, we’ve mentioned the two possible exemptions to a vaccine requirement: disability...
yellow rubber gloves on hands reach high

Protected Concerted Activity in the Era of COVID-19: What Employers Need to Know

The National Labor Relations Board (NLRB) is one of the federal agencies that many employers do not have on their radar. The NLRB is most...

Wimberly, Lawson, Steckel, Schneider & Stine

3400 Peachtree Road, Ste 400 / Lenox Towers / Atlanta, GA 30326 /404.365.0900

Where Experience Counts

Thank you for visiting the firm's website. Please note that this website is intended for general information purposes only and does not constitute an offer of representation or create an attorney-client relationship with the firm. The firm welcomes receipt of electronic mail but the act of sending electronic mail alone does not create an attorney-client relationship. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include the firm's copyright notice.

© 2020 Wimberly, Lawson, Steckel, Schneider & Stine P.C. | Site By JSM