Training Center at Heart of Corruption Scandal Gets the Boot in GM Contract

Steph Willems
by Steph Willems

Buried beneath all of the pay and benefit details contained within the tentative UAW-GM labor agreement is a property sale. No, Ford’s not buying back the Renaissance Center.

A property situated on the banks of the Detroit River hosts the GM Center for Human Resources — the jointly operated training center funded with automaker cash, and one that’s become quite notorious of late. Given that the center sits at the heart of a federal corruption probe, the automaker feels it’s probably a good idea to ditch the property.

Recent indictments show the training center was used as a way of funneling GM funds away from workers and into UAW officials’ pockets. The cash went to pay for lavish living; two UAW officials connected to the GM file are charged with fraud and conspiracy, joining a host of UAW-FCA officials who used that automaker’s joint training center for the same purposes.

UAW President Gary Jones, whose home was recently raided by FBI agents, remains uncharged at this time but was nearly invisible in the recent labor contract negotiations.

As reported by the Detroit Free Press earlier this month, General Motors was apparently eager to close the center. The UAW’s bargaining team reportedly pushed back on the idea. In the tentative agreement sent to members for ratification yesterday, GM and the UAW agree that the center’s operations should be wound down and the property sold off. In its place, GM will provide a building for training and joint activities, Automotive News reported Thursday, with cash raised from the property sale going towards those activities.

[Image: General Motors]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
 4 comments
Next