Feds Cite Former UAW Presidents for Racketeering; File New Charges against Ex-Regional Boss

It’s official: The United Auto Workers has been declared a racket. On January 6, recently departed UAW President Gary Jones (in photo) and his immediate predecessor, Dennis Williams, were cited, albeit under assumed names, in Detroit federal court as participants in a racketeering enterprise. The designation was part of a new charge against Vance Pearson, former director of a major regional affiliate and a member of the union’s international executive board, of embezzlement conspiracy. U.S. Attorney Matthew Schneider had been hinting at such action these last few months. Jones had resigned his post under pressure in November. The actions follow a joint probe by the FBI, the IRS and the Labor Department’s Office of Labor-Management Standards and Office of Inspector General.

Union Corruption Update more than once has covered this scandal, the details of which provide a hard look into how the Detroit-based union, with around 400,000 active members, … Read More ➡

UAW Chieftain Gary Jones Resigns as GM Department Scandal Widens

Gary Jones’ tenure as head of the United Auto Workers was brief. But he and the union are preparing for what may be a long ordeal. On November 20, Jones, beset by a slew of federal corruption charges involving extensive illegal payoffs exacted from vendors by ex-officials of the UAW’s General Motors Department, abruptly resigned as president. Nine days later, he ended his union membership. The actions occurred shortly after the UAW executive board filed paperwork to expel him and a regional director, Vance Pearson. While Jones has not been accused of anything (yet), his home was one of several sites raided in August by federal agents. In a related event, GM last month filed a racketeering suit against Fiat Chrysler on grounds that the latter misused the collective bargaining process to facilitate a merger.

If these were normal times, the 400,000-member, Detroit-based United Auto Workers might be … Read More ➡

Feds Raid UAW Presidents’ Homes, Conference Center; Charge Ex-Union Official

A few weeks ago, U.S. Attorney for Eastern Michigan Matthew Schneider said after the sentencing of a United Auto Workers official, “We’re not done.” He wasn’t kidding. This Wednesday, FBI and IRS agents in four states raided the homes of UAW President Gary Jones (in photo) and former UAW President Dennis Williams, plus the union’s rural Michigan conference retreat/training center and a couple of other sites in search of evidence of corruption. The actions follow the convictions of several UAW and Chrysler officials for their roles in a bribery and embezzlement scheme, and charges announced this August 14 against now-retired union senior official Michael Grimes for receiving the bulk of nearly $2 million in vendor kickbacks. He pleaded not guilty to wire fraud and money laundering on Wednesday.

Union Corruption Update has covered the United Auto Workers-Fiat Chrysler scandal since it broke wide open in July 2017. The focus … Read More ➡