The United States Attorney in Detroit, Matthew Schneider says the corruption cases inside the United Autoworkers Union are “based on greed. Putting your own interests above others.”
Schneider called it “disturbing” that the UAW membership was on strike against General Motors being paid $275 a week in strike pay compared to “the union leadership has been drinking out of thousand dollar bottles of booze.”
Thirteen people have been charged so far and 10 have taken plea deals, including three people who worked for Fiat Chrysler.
The 11th plea deal is expected on Wednesday with former UAW Vice President Joe Ashton. The charges in the cases have been embezzlement, bribery, fraud, money laundering and extortion involving millions of dollars.
Schneider says the UAW has not been informing the feds of corruption along the way. When the union started the process to oust UAW President Gary Jones there was new information in that not known to the feds.
Schneider says they could come at the UAW with a civil Racketeering action that could result in a consent agreement with oversight but that could be years away.
The UAW said in a statement:
It's disappointing that Mr. Schneider does not yet recognize the UAW's sincere efforts at reform. After just three short weeks under Acting President Rory Gamble, the UAW has instituted a series of fundamental reforms. In fact, today the UAW announced significant accounting changes and financial controls that will tighten up our procedures and prevent future misfeasance. The UAW has, as recently as last week, expressed a willingness to further work with the government on the issues of concern. And we continue to cooperate in providing the government any and all records requested