United Autoworkers Union accused in shakedown of its employees

Posted at 5:35 PM, Jan 20, 2020
and last updated 2020-01-20 18:24:55-05

(WXYZ) — A new lawsuit filed by the Mackinac Center for Public Policy alleges new corruption inside the United Autoworkers Union. The suit says the union required union dues to be paid by staffers into a non-existent union and they got nothing out of it. The lawsuit was filed on behalf of retired UAW Accountant James Shake.

The lawsuit claims conversion, fraud and breach of contract and was filed in Wayne County Circuit Court. We are told the plaintiff has also talked with the feds.

Thirteen people have been charged by the U.S. Attorney with bribes, kickbacks, embezzlement and other charges, and 11 have taken plea deals.

Former UAW Presidents Gary Jones and Dennis Williams have been implicated but not charged.

The UAW in a statement said:

"The UAW is currently reviewing a lawsuit filed by a UAW employee concerning dues paid to Local X. While we cannot comment on ongoing litigation, the following defines Local X.

The vast majority of the International Union’s staff are members of a UAW local union. Article 12, Section 13 of the UAW Constitution provides, however, that the Union may employ non-members with special expertise, such as accountants, actuaries and lawyers. While these types of employees are often not eligible for membership, the Union believes it’s important that – like other members of the International staff – they contribute their fair share to the cost of the UAW’s operations. Local X is the administrative mechanism by which those contributions are made. They are deposited into the Union’s general fund along with ordinary dues payments.

The plaintiff’s legal claims concerning Local X lack merit."