Ex-worker’s unit head charged in Fiat scandal

Bloomberg

The former head of the United Auto Workers’ unit representing workers at Fiat Chrysler Automobiles NV department was charged by federal prosecutors in Detroit with conspiracy to violate the Labor Management Relations Act, becoming the highest-ranked union official yet caught up in the investigation.
Norwood Jewell is the latest former UAW or company official charged by the US over allegations that, starting in 2009 or earlier, millions of dollars were funneled from the Fiat Chrysler Automobiles training center to union leaders to buy labour peace. Three former FCA executives and three former UAW officials have pleaded guilty, as has the widow of the prior head of the union’s FCA unit.
Jewell is in discussions with prosecutors “towards a fair and just resolution,” of the case, his attorney, Michael Manley, said in a message. “We are confident that when the facts of the case come out as it relates to Mr. Jewell, his decades-long reputation of honorable service to members of the UAW will remain intact.”
Automakers and the UAW are gearing up for new labour negotiations this year. Contracts covering more than 150,000 US hourly workers at General Motors Co., Ford Motor Co. and Fiat Chrysler expire September 15 and talks are expected to officially begin this summer. In a shot across the bow of auto executives, the UAW said last week it will increase strike pay for workers.
The Department of Justice claims union leaders received credit cards and lavish gifts, including golf trips, designer clothing, furniture and jewelry, as part of a plan to keep senior UAW officials “ fat, dumb, and happy,” according to legal documents. Fiat Chrysler executives also took advantage of the scheme for their personal benefit.