The United Auto Staff union resolves civil lawsuits as a part of a corruption investigation with the Justice Division
Striking members and supporters of United Auto Workers attend a speech by Senator Bernie Sanders of Vermont outside the General Motors assembly plant in Detroit-Hamtramck on September 25, 2019 in Detroit.
Michael Wayland / CNBC
DETROIT – The federal prosecutor plans to announce measures to reform the United Auto Workers on Monday as part of a planned civil law settlement with the Justice Department in its multi-year corruption investigation against the prominent American union.
US attorney Matthew Schneider and UAW President Rory Gamble are expected to speak at a joint press conference in Detroit where prosecutors will reveal details of the deal. Spokespeople on both sides declined to comment on the proposed settlement.
Gamble and Schneider have discussed union reform settlements, possibly using an independent monitor. Schneider said in August that it remained an option. The Detroit News previously reported that the Department of Justice had proposed that the UAW be subject to 10 years federal oversight, one of the longest periods of federal oversight in recent history.
When the union’s federal investigation was published in July 2017, it focused on a jointly operated training center between the UAW and Fiat Chrysler. But it was quickly expanded to perform similar operations with General Motors and Ford Motor.
In August, Schneider said Fiat Chrysler and Ford had continued to be investigated, but prosecutors had investigated and acquitted the company’s officials at GM. The investigation has resulted in convictions of 15 people, including two former UAW presidents, three Fiat Chrysler executives and a former GM board member who was a union leader.
The deal could end the investigation, but it wouldn’t necessarily prevent federal officials from prosecuting others if other illegal activity is exposed.