Tag: uaw

By on September 16, 2020

General Motors refuses to let the dismissal of its federal racketeering case against Fiat Chrysler Automobiles stand in the way of getting what it believes is true justice. On Monday, the automaker filed its latest claim with Wayne County Circuit Court in Michigan. These are separate from the New Jersey lawsuit it has targeting former board member and ex-UAW vice president Joe Ashton, who GM has accused of being a hired mole. However, Ashton was named in the trio of new court filings, along with Alphons Iacobelli  the man who pled guilty to embezzling union funds and kicked off a gigantic federal corruption investigation into the UAW.

The automaker also named some of the banks it claimed were involved in the union scandal and continues to allege that FCA “provided millions of dollars to co-conspirators via numerous undisclosed offshore bank accounts and utilized such accounts to purchase the support and silence of numerous high-level UAW officers and FCA executives.” Fiat Chrysler’s assumed goal? Forcing General Motors into a merger or destroy it if the merger failed by negotiating favorable terms with the union and encouraging leadership into adopting positions that would harm GM.

(Read More…)

By on September 9, 2020

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Unifor has selected the Ford Motor Company as its target for collective bargaining. Once negotiations conclude, the union will be using the terms established with the automaker to lay the groundwork for pattern deals with General Motors and Fiat Chrysler Automobiles.

While the talks have not yet begun, we already know Unifor wants to cement production commitments in Oakville, Ontario, where Ford is rumored to be ending Edge assembly. It would also like to secure deals for FCA plants in Brampton and Windsor. Naturally, the union will also be demanding wage increases  though this is sometimes the most contentious issue. Contract talks from 2016 became stuck in the mud over higher pay until Ford insisted employees remain subject to a 10-year wage grow-in that union members had been split on. It’s unclear if that will remain the case in 2020 but we genuinely haven’t had high hopes for the Union pulling out anything that resembles a major victory.

(Read More…)

By on August 27, 2020

The writing was on the wall for months, ever since federal agents raided former United Auto Workers president Dennis Williams’ home last September.

Since hosting those gun-toting visitors, Williams cooled his heels, uncharged by waiting for the inevitable hammer to drop. We say inevitable, as Williams’ name was mentioned as a co-conspirator in the trial of another UAW official, with Williams accused of funneling funds earmarked for UAW members into lavish living and gifts for himself and his fellow embezzlers.

In the meantime, Williams watched the union’s previous president — his successor — step down and subsequently be charged for the same illicit deeds court documents claim he performed.

On Thursday, the inevitable came. (Read More…)

By on August 26, 2020

Alleged absenteeism stemming from the coronavirus outbreak encouraged General Motors to place salaried volunteers on assembly lines in Wentzville, MO. This has not gone over well with the UAW, which suggests GM’s decision to utilize non-union staff is in direct violation of its 2019 labor contract. The union claims white-collar workers have no business being on assembly lines and has issued a formal warning to the automaker.

Established in 1983 as a stamping and production facility, the site is currently responsible for General Motors’ full-size vans (e.g. Chevrolet Express) and midsize trucks (Chevy Colorado/GMC Canyon). The facility has room for 4,560 employees — most of whom are hourly. Those employees are split between the the usual three shifts, with GM claiming difficulties in keeping them populated.

In July, the company said it might have to reduce the plant to just two shifts before pressure from outside convinced it otherwise. This led to the automaker seeking about 200 temporary workers and placing ads with local outlets. (Read More…)

By on August 14, 2020

General Motors’ attempt to revive its RICO lawsuit has failed after a federal court claimed the new evidence presented was too speculative to start the legal process back up. U.S. District Judge Paul Borman dismissed the case with prejudice in July, calling it a “waste of time,” but GM returned with new evidence it hoped might turn the tables.

Filed in November, the General’s case against FCA claims its rival finagled a labor advantage by bribing UAW officials during key contract negotiations. With a federal corruption case still probing the union, and with Fiat Chrysler’s known involvement, it seems like GM might have had a case here. But Judge Borman didn’t think there was sufficient evidence before, and hasn’t changed his mind since.

(Read More…)

By on August 11, 2020

General Motors desperately wants to reopen a case dismissed last month by a federal judge, but Fiat Chrysler’s having none of it.

The racketeering lawsuit filed by GM against its crosstown rival alleged that FCA secured unfair labor advantages over GM via bribed UAW officials, with the automaker claiming last week that it possesses new evidence capable of convicting its automotive foe. A number of offshore bank accounts fueled the bribery effort, GM claims, with the automaker’s court filing accusing former UAW Vice President (and ex-GM board member) Joe Ashton of being a paid mole.

Gripping stuff, but FCA says it’s seen this movie before — and it’s a stinker. (Read More…)

By on August 4, 2020

Last November, General Motors filed a racketeering suit against Fiat Chrysler Automobiles, claiming its rival was involved in a prolonged bribery scheme with UAW leaders to gain an unfair labor-cost advantage. Despite FCA already having staff participating in a vast union corruption scandal, U.S. District Judge Paul Borman dismissed the GM case in July after claiming there was nothing to it beyond petty corporate squabbling.

Now GM is back, claiming it has new evidence against FCA that’s going to blow the lid off everything.

On Monday, the General asked the court to reinstate the racketeering lawsuit. It now claims that there’s evidence of foreign bank accounts used in the alleged bribery scandal. We say “alleged” despite the FBI’s continued investigation into the UAW (separate from the GM-FCA suit) showing criminal levels of corruption. The company even suggested that Alphons Iacobelli (who is already serving time for bribing union officials) channeled sensitive information back to FCA after being hired by GM. The claimed plot then has Fiat Chrysler paying the Iacobelli  family millions of dollars via overseas accounts.

“These new facts warrant amending the court’s prior judgment, so we are respectfully asking the court to reinstate the case,” GM said.

(Read More…)

By on July 1, 2020

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If you’ve visited an airport recently, you probably heard on CNN that cases of COVID-19 are on the rise in jurisdictions that largely escaped the earlier wave. Against this backdrop, General Motors came under pressure this week to cease operations at its Arlington, Texas assembly plant.

Home to four full-size SUV models currently undergoing a generational metamorphosis, the plant lies in a state experiencing an upswing in infections. It’s also a key player in GM’s post-lockdown recovery. The automaker says it’ll stay open. (Read More…)

By on June 3, 2020

UAW

Gary Jones, the former United Auto Workers president who stepped down last November amid growing suspicion of wrongdoing, pleaded guilty Wednesday to involvement in a racketeering scheme that saw UAW officials soak themselves in funds earmarked for workers.

Jones is the biggest fish thus far caught in a wide net cast by federal investigators — a net that’s captured nearly a dozen current or former UAW execs with their hands in the till. In the former UAW prez’s case, more than a million dollars’ worth of union dues flowed not into training programs or other benefits, but into lavish living and high-priced toys.

Will Jones see a lengthy term in the clink, you ask? What do you think? (Read More…)

By on May 15, 2020

UAW

Former United Auto Workers President Gary Jones was arraigned via video link yesterday, catapulting the disgraced union boss back into the headlines two months after his arrest on charges of embezzlement, racketeering, and defrauding the U.S. government.

During a videoconference held by the U.S. District Court in Detroit, Jones’ attorney entered a not-guilty plea for his client, though the former UAW boss is expected to plead guilty in June. The manner in which Jones was charged gives every indication a plea deal is in the works, with Jones’ assistance in fingering co-conspirators offered in exchange for a reduced sentence. (Read More…)

By on May 5, 2020

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The first quarter of 2020 spilled a tsunami of red ink over Fiat Chrysler’s balance sheet, with the automaker posting a $1.84 billion net loss.

FCA seemed to be the canary in the coal mine when it came to the coronavirus, as the automaker was forced to idle an assembly plant in Europe even when the pandemic was still a regional outbreak in China. Where did the virus then take hold? In Italy, of course — FCA’s European base of operations. You know what came after that.

Seemingly more so than its Detroit rivals, FCA has been eager to get factories back up and running, and the Q1 earnings report only adds to its desire for something approaching normalcy. The folks in Auburn Hills want to open things up starting May 18th. (Read More…)

By on May 1, 2020

The Motor & Equipment Manufacturers Association (MEMA) and Original Equipment Suppliers Association (OESA) have issued a letter to Michigan Governor Gretchen Whitmer saying they’re ready to start delivering components to manufacturers.

Despite Detroit automakers signaling a readiness to resume production, Whitmer has extended stay-at-home orders through May 15th — lifting some earlier restrictions on business and travel. However, the automotive industry still doesn’t have an official date to get things moving again, just a series of business plans outlining a gradual ramping up of production once lockdown mandates end.

Suppliers say that isn’t good enough. They want a clear-cut pathway toward industrial redemption. (Read More…)

By on May 1, 2020

Thursday’s health and safety update from Ford offered up details on that automaker’s back-to-work plan, with new info provided on how the company plans gradually ramp up production amid a pandemic. Ford seemed to suggest that its new protocol had the backing of a crucial organization: the United Auto Workers.

While neither the company nor the union can do anything to ease Michigan’s lockdown order, which runs through May 15th, UAW approval is needed to bring the Detroit Three’s plants back online. On Friday, the union’s stance seemed as firm as ever. (Read More…)

By on April 30, 2020

ford

Ford Motor Company’s chief operating officer, Jim Farley, joined the company’s chief human resources officer, Kiersten Robinson, and manufacturing and labor affairs boss Gary Johnson for a media Q&A Thursday, offering up details on what it will look like when the automaker returns to the business of cranking out cars trucks and SUVs.

That’s already begun in China, where 90 percent of the company’s employees are now back to work. It’s Europe’s turn to come back online now (the region is due to start a ramp-up on May 4th), as the Blue Oval awaits the go-ahead from the state of Michigan.

It all hinges on Michigan, apparently, given the critical mass of manufacturing and suppliers in that locale. When Gov. Whitmer eases shelter-in-place orders, Farley said, the company will leap into action. (Read More…)

By on April 24, 2020

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The domestic auto industry is revving its engines, ready to cautiously punch the accelerator, but something’s standing in its way. That something would be United Auto Workers President Rory Gamble, who on Thursday appealed to companies to put the green flag away and think of their employees instead.

Seeing automakers angling for a production restart in the first week of May, the UAW boss said it was too early to move ahead.

“At this point in time, the UAW does not believe the scientific data is conclusive that it is safe to have our members back in the workplace,” Gamble said in a statement. “We have not done enough testing to really understand the threat our members face.” (Read More…)

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