#Uaw

Fiat Chrysler wants to see General Motors’ racketeering lawsuit dismissed, but the automaker’s crosstown rival isn’t in a charitable mood.

GM contends that bribery of United Auto Workers officials by FCA over years of contract talks left that automaker sitting pretty, with extra labor costs dumped on its Detroit competitors. While FCA claims GM can’t prove it’s a victim, The General says otherwise.

The ongoing federal probe into bribery, money laundering, and embezzlement among UAW officials marches on, with former president Gary Jones being the latest figure hit with charges. While expensive villa rentals and tony hooch seemed to be common expenditures among UAW brass with ill-gotten financial gains, the scandal also highlighted a certain piece of lakefront property.

That property, as well as the spacious home built on it, is something the UAW would rather not have anything to do with. It can now be yours.

Federal authorities have charged former United Auto Workers President Gary Jones with embezzling more than $1 million of union funds.

It’s the latest round of charges and the highest-profile target thus far in the ongoing investigation into corruption among the union’s upper ranks. A criminal information reveals Jones, who resigned as president last November, plans to plead guilty and cooperate with federal investigators.

Three of Jones’ former aides, all of whom were swept up in the corruption probe, provided assistance that led to today’s charges. The former UAW boss was one of several top execs who prosecutors say diverted union funds towards lavish living and toys.

Michael Grimes, former executive assistant and board member of the UAW-GM Center for Human Resources, was sentenced to 28 months in prison Wednesday after being convicted of money laundering and wire fraud.

While the sentence could have been longer, prosecutors reportedly asked for leniency due to Grimes’ cooperation with the broader investigation. Initially pushing for about four years of jail time, they eventually toned the recommendation down to just two. U.S. District Judge Bernard A. Friedman acknowledged the defendant’s usefulness in helping federal authorities sniff out more union and industry corruption, then decided to stick him with an extra couple of months to send a message.

Gerald Kariem has been unanimously selected by the UAW’s executive board to become its new vice president and director of the Ford department. Kariem, 63, has been a board member himself for almost ten years and currently oversees Region 1D. His placement frees up Rory Gamble to handle more presidential duties (Gamble having taken on the top role in November after former UAW President Gary Jones resigned amid a federal corruption investigation).

“Gerald brings a wealth of leadership in contract implementation, and he will be able to pick up on the recently ratified Ford contract,” Gamble said in a statement. “His experience in implementing the merger of Regions 1C and 1D and building teamwork through his leadership will be invaluable as we implement reforms within the UAW.”

UAW President Rory Gamble, who took the helm of a scandal-rocked union following the resignation of former prez Gary Jones late last year, is reportedly under federal investigation himself.

Gamble embarked on a wide-ranging clean-up operation soon after taking the job in the hopes of avoiding federal oversight, while at the same time charting a bribery- and corruption-free path forward for the union. The investigation’s scope is a broad one, peering beneath every stone, and Gamble claims this particular probe is par for the course.

The Detroit Fire Department has been going back and forth on the July 13th fire at the United Automobile Workers’ headquarters since its investigation began. Arson was initially on the table before being swiftly ruled out, and the probe continued by private investigators contending with insurance claims, seemingly free of suspicion.

Investigators now believe the fire could have been set intentionally, without attaching any conviction to those claims.

“I was told at the time that they did not think it was arson,” Detroit Fire Department Deputy Commissioner Dave Fornell told Automotive News in an interview from Monday. “That wasn’t a final verdict … When I did some inquiries with the press, I asked investigators and they were saying at that point it was ruled out.”

The latest round of Detroit Three labor wrangling has wrapped out without a second strike. In side-stepping the same walkout that plagued General Motors earlier this year, Fiat Chrysler has made itself all the more attractive to its corporate fiancé, Groupe PSA.

Late Wednesday, FCA announced its workers had voted to approve the tentative four-year labor agreement reached between it and the United Auto Workers.

Plenty of planks found in the quickly hammered out UAW-Ford contract can be found in the tentative deal forged between the United Auto Workers and Fiat Chrysler. Following approval from the National UAW-FCA Council, the agreement reached last weekend goes to members for final approval (or rejection) on Friday.

The two sides reached an agreement far quicker than some predicted, but the final word on the deal will come from workers.

In a move that should surprise absolutely no one, former UAW Acting President Rory Gamble, who took over the top spot when scandal sunk former prez Gary Jones, has been appointed president of the union.

The ongoing federal corruption probe into the UAW hasn’t ended, but Jones’ presidency did after media outlets named him as one of the shadowy UAW officials mentioned in embezzlement-related court documents. First order of business for Gamble after taking over last month? Clean up the UAW’s act.

With environmentalism sweeping through the automotive industry of late, manufacturers are spending oodles of cash to fund the continued development of electric vehicles. Unfortunately, the are doing this during a period where the developed world’s taste for cars has already reached its zenith — or so it seems. Growth is slowing in markets across the globe and cuts have to be made somewhere if the industry players want to keep their bottom line positioned firmly in the black.

A recent report from Bloomberg, estimated that around 80,000 auto jobs will be eliminated in the coming years as a result of electrification — with the majority concentrated in the United States, Germany, and United Kingdom. Though the onslaught of cuts will not be limited to the developed world, nor entirely the fault of EVs.

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.

If you’ve followed the news lately, that headline could easily include the term “scandal-plagued” twice. Fiat Chrysler, currently pursuing a merger deal with Groupe PSA while battling a racketeering lawsuit filed by General Motors, has inked a tentative four-year labor deal with the United Auto Workers — a union facing the biggest scandal in its history.

At least in this latest round of bargaining, the UAW didn’t have its former president, Gary Jones, lurking in the background under a cloud of suspicion. Jones resigned as president, and then from the union altogether, late last month after the board moved to oust him.

Following the resignation of scandal-tainted UAW President Gary Jones late last week, UAW Region 5 Director Vance Pearson took the cue and followed him out the door. Pearson, charged with embezzlement and money laundering in an ongoing federal corruption probe, was, like Jones, on a paid leave of absence.

Both men headed for the exit after the UAW, newly infused with an reformist attitude, moved to oust the officials.

There was no thanking Pearson for his service.

The reforms announced by UAW Acting President Rory Gamble last week are already resulting in casualties. On Wednesday, the United Auto Workers Executive Board filed charges against President Gary Jones and Region 5 Director Vance Pearson under Article 30 of the UAW Constitution in a bid to oust them from the scandal-rocked union.

Jones, who took a leave of absence earlier this month amid growing suspicion of criminality, resigned almost immediately. Pearson, charged with embezzlement of union funds and money laundering, remains on his own leave of absence — one that’s likely to become permanent.