
Bloomberg
United Auto Workers (UAW) President Gary Jones, who led negotiations that ended an almost six-week strike at General Motors Co was expected to take a leave of absence Sunday amid reports he is involved in a years-long corruption scandal. Those allegations clouded contract talks with US automakers.
“I do not want anything to distract from the mission,†Jones said in an emailed statement after the union’s Executive Board approved the step. “I want to do what’s best for the members of this great union.â€
UAW Vice President Rory Gamble, who negotiated an agreement announced this week with Ford Motor Co, will serve as acting president, the union said in the statement. Local unions must still approve the accord. Next up is Fiat Chrysler Automobiles NV.
The Detroit News said that the allegations were outlined in a criminal case filed against Edward “Nick†Robinson, 72, of St Louis, president of a regional UAW community action program council. He was charged with conspiracy to embezzle — as much as $700,000— in union funds, the newspaper said.
Jones, 62, was not identified in the filing but he was referred to as “UAW Official A,†according to people familiar with the investigation cited by the newspaper.
The mild-mannered finance man was nowhere to be seen when the UAW announced the strike against GM on September 15 in Detroit.
The already low-profile Jones had been incognito since he was implicated — but not indicted — in a federal charging document that accompanied the September 12 arrest of UAW regional director Vance Pearson on conspiracy, money laundering, wire fraud and other charges.
Pearson succeeded Jones as the head of the UAW’s largest region and a member of the union’s international executive board. Jones’s attorney, Bruce Maffeo, told The Detroit News the chief is taking paid leave.
Home Raided
While Jones isn’t named and hasn’t been charged, his home was raided in late August. The government’s complaint mentions the search of a current UAW officer’s residence that turned up items similar to those Pearson is accused of buying with members’ dues.
GM workers ratified the four-year labour agreement on October 24. Union leaders then endorsed a tentative deal with Ford, and sent it to workers for a ratification vote after negotiations that lacked the drama with GM.