Ford Authority

UAW May Get Federal Oversight In Wake Of Widespread Corruption

The UAW is going through an unprecedented time of corruption within the union. Most recently, its former president, Gary Jones, stepped down from his position as the union was seeking to remove him. In the wake of the corruption going all the way to the top of the UAW, there is the chance that the union will be hit with federal oversight.

Once the investigators see how far the corruption goes within the union, federal oversight is a possibility. Word of potential oversight for the union comes from U.S. Attorney Matthew Schneider, who recently gave a rare interview talking about the years-long investigation into the UAW.

Schneider admitted that federal oversight is a possibility for reforming the union that is plagued by what the investigators have dubbed a “culture of corruption” among senior leadership. Procedures in the case could take control of the union by filing a civil racketeering lawsuit. If the prosecutors did file such a lawsuit, it could cost the union tens of millions of dollars and involve replacing labor leaders along with imposing prolonged federal oversight.

Schneider also voiced frustration with the lack of cooperation from the union, stating that after four years, the investigation is only about halfway complete. Schneider also said that he was unimpressed by the reform efforts that were announced in mid-November by acting president Rory Gamble. If federal oversight of the union were instituted, it wouldn’t be the first time for federal authorities. Feds also had oversight of the International Brotherhood of Teamsters 30 years ago.

However, Schneider said that pushing for federal oversight is premature now, noting that the government had to go through the criminal cases before determining how to move forward. The reforms proposed by Gamble include an independent ethics officer, strengthening internal financial controls, and selling a lakefront home built for former President Dennis Williams.

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Source: Detroit News

Shane is a car guy with a fondness for Mustangs and off-roading.

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