Wednesday, August 18, 2021

FCA admits paying off union leaders; fined $30M

A federal judge fined FCA US $30 million on Tuesday after the automaker admitted that it paid off United Auto Workers leaders to try to win concessions in negotiations covering thousands of factory workers.

Its conviction follows a series of guilty pleas from UAW officials who were showered with more than $3.5 million in cash and items of value from a jointly run training center over an eight-year period.

The head of FCA labor relations, Al Iacobelli, executed the scheme with five UAW officials and a spouse, especially General Holiefield, who was a union vice president. He eliminated a $262,000 home mortgage in 2014 with training center money.

The government’s investigation became public in 2017, but agents soon were uncovering other corruption at the UAW. Union dues were used to pay for golf, booze and vacation villas in California, and contractors were giving kickbacks for union business.

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