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Rebuilding trust a priority at UAW convention in Detroit after federal corruption cases

Posted at 5:03 PM, Jul 25, 2022
and last updated 2022-07-25 18:22:07-04

(WXYZ) — The future of the United Auto Workers (UAW) union is riding on the next three days in Detroit. The UAW Constitutional convention, which is held every 4 years, will begin Monday and will continue through Thursday.

The event comes after years-long federal corruption cases that brought down two union presidents and a total of 17 top officials with charges of embezzlement, and fraud.

UAW Convention set to take place this week amid 17 federal corruption cases in federal court

The timing is also critical as the UAW will negotiate new contracts with Detroit's Big 3 automakers next year.

The convention is about voting for candidates to run for top union jobs. This year, they will be voted on by all members through a one-member, one-vote mail-in ballot. This comes after multiple corruption cases and a consent decree between the department of justice and the union.

"It's wonderful for the members because now the power is in their hands and they can decide whatever they want," former U.S. attorney Matthew Schneider said.

"The consent decree is going to really hang over this, this this this convention. We have to do it," UAW member Mike Diguiseppe said.

The convention is also about cleaning up the union.

Diguiseppe from New York has been working on some of these resolutions which include reform and restoring trust at the top.

The current UAW President says trust is still being built. "I think we're still building," Ray Curry said.

"There's a severe lack of trust within the UAW," UAW member Mike Booth said. "That's an understatement. Gluttony, greed, and corruption has plagued the international UAW."

"Trust has to be earned and we're gonna see more of this ... it's gonna get harder before it gets better," Diguiseppe said. "Let's be honest here, we have a monitor that's going to be micro-analyzing everything.

The consent decree includes that federal monitor of the union for 6 years.

It also adds that the UAW was concealing a union investigation into the mishandling of funds.

Two other union officials were accused of embezzlement. One quit and one was charged. 19 other investigations remain open.

UAW president Ray Curry had a meeting with the current U.S. attorney in March, changed union attorneys and called it all a reset.

"It's kind of a two-strikes and you're out. They've been warned. You have to cooperate. And that was their one chance," Schneider said. "And if they decide that they don't want to cooperate again, I think you'll see the justice department going back to the courtroom and back to the table and this whole thing could blow up."

"I appreciate the former US Attorney’s opinion. At this time, there’s a new sitting Eastern District US Attorney. And we’ll work with that office to move forward with that obligation," said Curry.

The monitor also called out the current UAW secretary-treasurer Frank Stuglin. He is running for re-election.

He spent $95,000 of union money on backpacks with his name on them to be handed out at two earlier conferences. The monitor was alerted by a call to a tipline.

"Five years ago, that would have happened and no one would have batted an eye and they would have gotten away with it. And now it’s like let’s put on the brakes, time out, you cannot do that," Schneider said.

Mike Booth is the president of the UAW local in Marysville, north of Detroit.

Back in 2019, his local UAW sued the international UAW for not doing enough to protect union jobs with a change in ownership of their organized axel plant. Booth is running this year for international VP.

"We must demand a forensic audit of the finances of the international UAW," Booth said.

One thing everyone agrees on is opposition to the early release by the Federal Bureau of Prisons of the past two UAW presidents, Gary Jones and Dennis Williams, who pleaded guilty to fraud and embezzlement.

"I view that as pretty disgusting and the only people who are truly hurt are the men and women of the union," Schneider said.

"If the fullest extent of the law is Gary Jones going to club fed for a couple of months and then getting out, then what is this guy doing," Diguiseppe said.

Balloting for union officials will be later this fall. The next monitor report comes out in 6 months.