Does anyone know much about the UAW spending allegations?

[Blue_true]

Looks like the interim guy Rory Gamble is clean, but he may need to clean up the board, a potential tough task.

I stumbled on the story and find it all disconcerting. The job of leadership should be laser focus on member needs, look like some higher-ups compromised that. One of my concerns is this situation will allow anti-Union politicians to make unfounded charges in hopes of getting something to stick.

[Recursion]

1. The problem seems to have been Gary Jones

He owned both ends of a union merch deal that involved staffers and members being pressured to buy $1000 jackets and stuff like that, which he skimmed from.

Jones was bad news in other ways: he blocked an attempt by aerospace techs in the University of California system to affiliate (UAW's mandate includes aerospace), and dissuaded organizers from reaching out to workers at Tesla who wanted to strike, apparently because both of those would dilute his own power base in the union.

The first one is just normal venal crap that happens in any large enough organization: sweep up the detritus and move on. The second one is really problematic in the long term.

[Blue_true]

3. New leadership can reconnect to the people that were barred from the UAW.

Longterm, I think the larger issue is how to prevent scumbags from gaining power again.

[MichMan]

7. Many are surprised that the UAW does not have direct elections by the rank & file.

The rank & file only get to vote for their local delegates. The delegates vote for the top leadership officials, however the decision on who runs has been controlled for decades by the Administrative Caucus. One of the criticisms is that in order to curry favor with the Administrative Caucus, there is an entrenched patronage system. Anyone working for the union who steps too far out of line is threatened with being sent back to the assembly lines.

One of the results of the corruption scandal is that many rank & file members are demanding direct elections. There is resistance by those who were poised to move up and fill the current void in leadership.

[Blue_true]

9. How often are contacts negotiated with automakers?

To me, direct elections would be preferable, but it has to be done in a way that experienced hands are leading contract negotiations.

Somehow a system must be worked out that constantly makes leaders accountable to the rank and file.

[MichMan]

14. Usually every 4 years or so

One company is selected as the target company and once they come to an agreement, the others are expected to follow the same basic agreement. As long as there isn't a strike, generally the company hopes they are selected as the target, in order to structure a deal that meets their needs and hurts their competitors. This time it was GM, and the UAW went on strike for 60 days which was a lot longer than anyone expected. Once they settled, Ford and Chrysler were expected to follow the same basic agreement, which they did without a strike.

[MichMan]

2. This is a very serious issue and covered weekly in Detroit media for at least the past year

There have been dozens and dozens or articles in both Detroit newspapers for over a year or so. I believe there have been 3 Chrysler execs and at least 10 UAW officials that have plead guilty so far with more to come. It looks very, very bad for the UAW.

The first wave of allegations came with several UAW officials accepting bribes by a few FCA (Chrysler) officials. The automakers and the UAW operate some joint training centers and the UAW officials were given carte blanche usage of credit cards for personal use. The intent was stated to keep them "fat, dumb & happy" to influence contract negotiations. The UAW denied that while there was malfeasance, there was no affect on bargaining. The cash was spent on luxury items, travel, paying off a mortgage, expensive dining and lodging etc. There were 3 FCA and several UAW officials who were charged and all plead guilty. The stance of the UAW at the time was that there were a few bad apples, but members dues were not involved, so it was an external issue.

As the investigation continued, the focus became investigating that several members of the upper UAW leadership was getting kickbacks from vendors for hundreds of thousands of dollars for UAW branded trinkets and apparel. The investigation also uncovered that UAW leadership would schedule a conference in a resort area for a weekend and then personally stay for a couple more months dining on expensive meals, liquor as they played golf daily and charged expensive golf gear all paid by the UAW. There has also been a long going tradition of UAW leadership operating "charity funds" that coerced staff to contribute to for their own personal use. I think there have been at least a half dozen charged and plead guilty to these charges.

The FBI eventually raided the homes of UAW President Gary Jones and former president Dennis Williams and seized large sums of cash hidden in the garage among other items. They have yet to be charged, but based on the guilty pleas and cooperation of co conspirators, it is only a matter of time. Gamble seems like a straight shooter, but the sheer volume of the corruption throughout the entire leadership may likely lead to a government oversight for quite a while.

There is some speculation that the 60 day strike at GM was initiated by Jones to get attention away from him. He resigned (before being fired) shortly after it was settled.

[Blue_true]

5. Government oversight of a Union under Trump.

That sounds like a bad deal for workers.

One of the tactics companies use to break strikes is to starve union members back to work. When leaders are ripping off the Union, the funds needed to prevent strike breaking simply are not there.

I hope Gamble can get things right, the concern is how deep is the corruption and will he get a free hand (although, even he should face audits to insure he stays on a clean path).

[MichMan]

4. NY Times story today stating Jones bought $13k of luxury cigars in one day with UAW money

[Blue_true]

6. I read that. Really disheartening. nt

[MichMan]

8. Especially when strike pay during the 2 month strike was $250 per week

To then find out that your leaders were spending dues money hand over fist on $250 bottles of liquor and $300 boxes of cigars didn't sit well.

From what I have heard in some of the reporting is, that considering there have been 10 convictions so far, with more coming, it appears that there was a whole culture of corruption starting at the top.

[Blue_true]

10. $250 per week is not going to pay bills anywhere,

in some cases spouses are on the picket line.

One change should be that the Union leaders maintain an annually audited "strike fund" that guarantees each member say $700 per week for three months minimum, in strike pay. Such a fund would also send chills down the spines of management because they will understand that Union members can't be starved back to work.

[Xolodno]

11. Sad thing is, this is no different than a CEO or Capital Investment Firm...

...from destroying a company to reap the cash rewards. And the workers get shafted.

Top it off, it feeds the "Unions are corrupt meme" by the GOP and disenchants the union members. When I was part of a union, virtually none of the workers trusted the union. The shop stewards took the job not because they believed in the union, they wanted to protect their fellow workers. First time I saw the Business Agent, when it came time to vote on a new contract...and I didn't know he was the Business Agent. After they voted the contract down, boom, suddenly he pops up, talking to everyone on why they shouldn't strike during a recession and to be patient since its only a three year contract. Some good things did come out of it, increased contribution to the strike fund, union leaders were surprised the workers wanted this, go figure.

Later I heard they dumped the union and went with another and play hardball.

[Blue_true]

12. You make some good points.

Business owners often have their own self interests in mind, many don't, but many do. I have always seen the role of Unions as protecting shop floor employees from abuse and gaining them fair pay and benefits.

[MichMan]

13. That was why the fact that several UAW officials plead guilty to accepting bribes by Chrysler

… was so disheartening to many of the rank & file who where wondering whose side the union was bargaining for.

[Blue_true]

15. I hear you. nt