United Auto Workers members leave the Fiat Chrysler Automobiles Warren Truck Plant in Warren, Mich., in May.
Photo: Paul Sancya/Associated Press
The Justice Department said Monday it has reached a civil settlement with the United Auto Workers union, marking a major turning point in a multiyear corruption investigation that has sent several former labor leaders to prison.
Federal prosecutors are expected to release details of the proposed settlement early Monday afternoon at a press conference in Detroit, held jointly with UAW President Rory Gamble. The DOJ said the settlement deal aims to outline reforms for the union but declined to comment further.
The federal investigation, which first became public in 2017, is one of the largest involving a national labor union in decades and has led to the more than a dozen convictions, including two former UAW presidents.
The UAW has previously condemned the financial misconduct uncovered in the probe and has said it is committed to making reforms.
The proposed settlement reached Monday doesn’t rule out future criminal charges against individuals and a criminal investigation is still ongoing, according to people familiar with the probe. But it brings the UAW a step closer to resolving a difficult chapter in its 85-year history.
The sprawling investigation, led by the U.S. attorney’s office in Detroit, has penetrated the UAW’s top ranks and exposed what federal prosecutors describe as a culture of corruption among its leadership built around kickback schemes, embezzlement and other illicit activities. It has led to 15 convictions so far and some union members say the charges and indictments have dented trust in the UAW’s leadership.
Write to Ben Foldy at [email protected]
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
