UAW president resigns amid corruption probe
United Auto Workers President Gary Jones. Photo: Bill Pugliano/Getty Images
United Auto Workers President Gary Jones has resigned, effective immediately, amid corruption charges, per his attorney, the AP reports.
Why it matters: UAW's executive board had already started taking steps to remove Jones under its bylaws, accusing him of “false, misleading and inaccurate expense records,” and indicating those charges could lead to his expulsion from the union. Jones has been implicated in an ongoing federal investigation into corruption at UAW, according to a CNBC report. He has not been charged by federal prosecutors, however federal agents raided his home in August.
- The union said all active members of the UAW International Executive Board also supported the dismissal of Vance Pearson, the regional director charged with embezzling union funds in September.
The big picture: The decision to remove Jones and Pearson comes a week after reforms were enacted in an attempt to prevent and eliminate corruption.
- UAW and General Motors approved a four-year labor contract in October, ending the first U.S. auto strike in 12 years. The union also certified an agreement with Ford last week.