Nov 20, 2019

UAW president resigns amid corruption probe

Fadel Allassan

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.

Go deeper: General Motors sues Fiat Chrysler alleging union bribes

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Orion Rummler

Auto workers union and Fiat Chrysler reach tentative deal

United Auto Workers on week six of a national strike against General Motors on Oct. 23 in Flint, Michigan. Photo: Bill Pugliano/Getty Images

The United Auto Workers reached a tentative four-year labor agreement with Fiat Chrysler on Saturday, CNBC reports.

The big picture: UAW reached tentative deals with Ford and General Motors in October after weeks of labor strikes, reducing GM's 2019 earnings by nearly $3 billion. The auto workers' deal at Ford came quickly, without any labor disruption.

Go deeperArrowNov 30, 2019
Fadel Allassan

UAW votes in favor of new contract with Ford

United Auto Workers union members picket at the General Motors Tech Center on Oct. 25 in Warren, Mich. Photo: Bill Pugliano/Getty Images

The United Auto Workers Union said its members voted to approve a four-year contract with Ford, Reuters reports, after reaching a tentative deal in October.

Why it matters: With 56.3% of Ford’s hourly workers voting in favor of the deal, Ford will avoid a strike like the six-week work stoppage that cost General Motors nearly $3 billion earlier this fall, per Reuters.

Go deeperArrowNov 16, 2019
Marisa Fernandez, Joann Muller

General Motors sues Fiat Chrysler alleging union bribes

General Motors' world headquarters. Photo: Paul Hennessy/SOPA Images/LightRocket via Getty Images

General Motors filed a lawsuit on Wednesday against Fiat Chrysler Automobiles, alleging its competitor was involved in racketeering by paying millions of dollars in bribes to corrupt the bargaining process with the United Auto Workers union, likely costing GM billions of dollars.

The big picture: The suit, filed in U.S. District Court in Detroit, aligns with the ongoing federal probe into corruption among some of UAW's top people and FCA's involvement. GM's accusation also comes as FCA and UAW are negotiating a contract fresh off a six-week strike at GM. Meanwhile, FCA is working on a planned merger with French automaker PSA.

Go deeperArrowNov 20, 2019