Feds, UAW reach settlement over corruption with independent monitor for 6 years

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Posted at 9:04 AM, Dec 14, 2020

(WXYZ) — The U.S. Attorney's Office for the Eastern District of Michigan announced a settlement with the United Auto Workers in the corruption investigation.

The main item in the settlement is that an independent monitor who will oversee discipline actions and enforce the terms of a consent order between the government and the union. That independent monitor will not be involved in the union's collective bargaining unless it is believed there is corruption involved.

According to the settlement, the union will also determine whether or not it changes its election process from a caucus to a one-member vote. There will be a secret ballot referendum to determine if there will be a change.

Schneider also said that this is the end of the UAW investigation as an entity, and that current President Rory Gamble is not a target of the investigation.

The independent monitor will be around for six years, but it could be shorter or longer depending on what happens, Schneider said.

It comes amid the investigation that has charged more than a dozen union officials, including two former presidents, Dennis Williams and Gary Jones.

The charges for officials included fraudulently obtaining hundreds of thousands of dollars in UAW funds.

The UAW agreed to resolve a tax investigation by making a payment of $1.5 million to the IRS in connection with administrative fees the union received from the three joint training centers that were operated with the three-car manufacturers.

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