Feds label Fiat Chrysler, UAW as co-conspirators

Source: Detroit News

Detroit — Federal prosecutors labeled the United Auto Workers and Fiat Chrysler Automobiles NV as co-conspirators in a widening corruption scandal, an allegation at odds with claims the labor union and automaker were victimized by rogue employees.The allegation, contained in a federal court plea agreement obtained by The Detroit News on Tuesday, potentially exposes the automaker and the UAW — a cornerstone of the modern American automotive industry — to criminal charges, fines and governmental oversight, according to a former federal prosecutor.

"This does not bode well for Fiat Chrysler and the UAW," said Peter Henning, a Wayne State University law professor. "All along, the union and Fiat Chrysler have portrayed themselves as victims, but this indicates the government has a different view."
Federal prosecutors say the union and Fiat Chrysler conspired from before 2009 through 2015 to violate the Labor Management Relations Act and the automaker enabled nepotism to flourish at a blue-collar training center. The law prohibits employers or those working for them from paying, lending or delivering money or other valuables to officers or employees of labor organizations — and from labor leaders from accepting such items.

"From in or before 2009 through 2015, FCA executives conspired with one another, with FCA, with officials at the UAW, and with the UAW, to violate the Labor Management Relations Act," prosecutors wrote in the court filing. It's the first time FCA and the union have been identified separately from individuals in the case. The government has not brought charges against either the company or the union.

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A fight for money central to the criminal case involving the UAW and Fiat Chrysler has intensified in recent days. The UAW-Chrysler National Training Center sued Iacobelli and others Friday to recoup $4.4 million it claims was embezzled during the scheme.
During the time of the conspiracy described by prosecutors, Fiat Chrysler executives authorized Holiefield and other UAW officials to offer sham employment at the training center to friends, relatives and allies, according to the court filing.

At the direction of Holiefield and other UAW officials, "numerous individuals were categorized as being on 'special assignment' status to the (training center) when, in fact, those individuals did little work or no work on behalf of the (training center)," prosecutors wrote.

Read more: https://www.detroitnews.com/story/business/autos/2018/06/12/feds-label-fiat-chrysler-uaw-co-conspirators/695076002/