FCA Pleads Guilty In Union Corruption Scandal, Admits Bribing UAW Officials

The company previously known as Fiat Chrysler Automobiles has plead guilty to one count of conspiracy to violate the Labor Management Relations Act. The plea was accepted by US District Judge Paul Borman.

Under the plea agreement, first announced in January, is expected to include a $30 million fine and three years of oversight by an independent compliance monitor for three years, per Reuters.

The legal case is a response to a series of bribes and favors that FCA, now a part of the Stellantis empire, paid to UAW officials. From at least January 2009 through around 2016, the automaker made more than $3.5 million in bribes to union leaders to improve its position during contract negotiations, to the disadvantage of the people working in FCA’s factories.

As reported by The Detroit News, FCA’s bribes to union officials included “paying off former UAW Vice President General Holiefield’s $262,000 mortgage, bankrolling a $25,000 booze-fueled bash for another labor leader and financing a $30,000 junket for UAW officials in Palm Springs and southern California”. Other union officials used credit cards, including UAW Vice President Norwood Jewell, who was sentenced 15 months in prison after admitting in his plea deal that he “listed $60,000 in meals and golf paid with training center credit cards”, per the Seattletimes.

Read More: Former FCA Executive Pleads Guilty In U.S. Union Corruption Case

“Through its participation in this conspiracy, FCA violated federal labor law and undermined the collective bargaining process and the faith of the UAW’s membership in their leaders,” said Acting U.S. Attorney Saima Mohsin in a statement.

Although the terms of the deal were previewed in January, the plea was submitted to the court this week and the actual sentencing will take place on June 21.

“By seeking a $30 million fine and three years of oversight by a court-appointed monitor, we are holding FCA accountable and sending a message to other companies that these types of crimes will not be tolerated,” said Acting U.S. Attorney Mohsin.

In all, this scandal led to charges against 15 individuals, including two past UAW presidents. All 15 have pleaded guilty and the former presidents, Gary Jones and Dennis Williams, are awaiting sentencing later this year.