UAW Not Cooperating in Corruption Probe, Says U.S. Attorney

Matt Posky
by Matt Posky

United States Attorney for the Eastern District of Michigan, Matthew Schneider, has said new details about the ever expanding UAW corruption probe have been trickling in. But he’s also criticizing the union for not providing adequate cooperation throughout the multi-year investigative process. Schneider indicated there was new evidence included additional details of malfeasance from former UAW President Gary Jones shared by the union in November. While the prosecutor did not offer details, he said it was the type of information that should have been reported to his office, not publicly.

Automotive News surmised he was likely referencing details released late last month by the union’s executive board in an effort to remove Jones and Region 5 Director Vance Pearson. That report included allegations that Jones let his daughter use a UAW-rented townhouse in Palm Springs, California. Sources familiar with the situation have confirmed that the union publicly released information against the two at roughly the same time it was handed it over to the U.S. attorney’s office.

“What we really would want is cooperation from the UAW,” Schneider said. “When I’m reading for the first time in the newspaper about criminal activity that hasn’t been reported to the Justice Department, that’s not helpful cooperation.”

From Automotive News:

Schneider made his first public comments about the UAW investigation to The Detroit News last week and has since granted interviews with other media outlets. He said the interviews have led to a number of tips from the public that have produced new information in the case as recently as Tuesday.

Schneider wouldn’t discuss specifics of the case and walked back previous comments to the News saying the investigation was about halfway completed.

“It’s very difficult to predict in any criminal investigation where you are,” he told Automotive News. He declined to say whether additional charges were coming, explaining that “all options are on the table” when asked about the possibility of placing the union in federal receivership under racketeering charges.

Schneider also said there was a clear distinction between saying one will cooperate and actively doing so. “Active cooperation isn’t, ‘Ask us questions and we’ll answer them,’ ” he said. “Active cooperation is, ‘We want to help you; here’s what we know.’ In order for this to be a more successful relationship, that’s what we’re looking for.”

The U.S. attorney said he’s waiting to see if the UAW’s acting president, Rory Gamble, will be more helpful than his predecessor. Obviously, the union responded by suggesting it’s doing more than its part to help end corruption.

“[It’s] disappointing that Mr. Schneider does not yet recognize the UAW’s sincere efforts at reform.” said UAW spokesman Brian Rothenberg. “The UAW has, as recently as last week, expressed a willingness to further work with the government on the issues of concern. And we continue to cooperate in providing the government any and all records requested.”

Thus far, the probe has resulted in 13 people being brought up on corruption charges with 10 pleading guilty. Federal prosecutors have indicated that more of both will undoubtedly come. Meanwhile, Gamble has been saying he “ won’t tolerate any inappropriate actions” and is aiming for the union to have the “highest standards of conduct” possible. He has also said he felt confident that the 12 remaining members of the union’s International Executive Board would not be swept up in the scandal.

“I don’t know,” Schneider said in response. “We will wait and see.”

[Image: UAW]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Conundrum Conundrum on Dec 04, 2019

    The UAW is as co-operative as Trump, then.

    • ToddAtlasF1 ToddAtlasF1 on Dec 04, 2019

      So you're saying that the UAW are the innocent victims of a bunch of scared criminals accusing them of what they're at risk of being exposed for doing? Interesting take. You must be smart and insightful.

  • Art Vandelay Art Vandelay on Dec 05, 2019

    If I were the FCA rank and file I'd have told them to shove their contract offer and affiliated with some other union. Why in this round of negotiation was it no big deal that the entity doing the negotiating had been taking bribes to throw their members under the bus?

  • Master Baiter I thought we wanted high oil prices to reduce consumption, to save the planet from climate change. Make up your minds, Democrats.
  • Teddyc73 Oh look dull grey with black wheels. How original.
  • Teddyc73 "Matte paint looks good on this car." No it doesn't. It doesn't look good on any car. From the Nissan Versa I rented all the up to this monstrosity. This paint trend needs to die before out roads are awash with grey vehicles with black wheels. Why are people such lemmings lacking in individuality? Come on people, embrace color.
  • Flashindapan Will I miss the Malibu, no. Will I miss one less midsize sedan that’s comfortable, reliable and reasonably priced, yes.
  • Theflyersfan I used to love the 7-series. One of those aspirational luxury cars. And then I parked right next to one of the new ones just over the weekend. And that love went away. Honestly, if this is what the Chinese market thinks is luxury, let them have it. Because, and I'll be reserved here, this is one butt-ugly, mutha f'n, unholy trainwreck of a design. There has to be an excellent car under all of the grotesque and overdone bodywork. What were they thinking? Luxury is a feeling. It's the soft leather seats. It's the solid door thunk. It's groundbreaking engineering (that hopefully holds up.) It's a presence that oozes "I have arrived," not screaming "LOOK AT ME EVERYONE!!!" The latter is the yahoo who just won $1,000,000 off of a scratch-off and blows it on extra chrome and a dozen light bars on a new F150. It isn't six feet of screens, a dozen suspension settings that don't feel right, and no steering feel. It also isn't a design that is going to be so dated looking in five years that no one is going to want to touch it. Didn't BMW learn anything from the Bangle-butt backlash of 2002?
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