🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

U.S. judge approves direct election of UAW officers

Published 02/01/2022, 12:18 PM
Updated 02/01/2022, 03:11 PM
© Reuters. FILE PHOTO: A person carries a flag with the patch from the United Auto Workers (UAW) labor union during a May Day rally for media workers held by The NewsGuild of New York on International Workers' Day in Manhattan, New York City, New York, U.S., May 1,

By David Shepardson

WASHINGTON (Reuters) -Members of the United Auto Workers (UAW) will directly elect officers after a referendum required as part of a 2020 Justice Department settlement to resolve a corruption probe.

U.S. District Judge David Lawson in Detroit on Tuesday approved the results of the referendum and ordered the change by June, which will be in time for the next union election cycle. The union in 2020 also agreed to an independent court-appointed monitor as part of the Justice Department settlement into allegations that resulted in the convictions of two former UAW presidents, among others.

UAW officers have been elected through a delegate system rather than through direct elections. More than 63% of current and retired members voted in favor of direct elections in a secret ballot.

"We will continue to work with the monitor to ensure that the UAW is fully reformed, free of corruption and fraud, and that the union’s elections will be fair," said Dawn Ison, U.S. attorney for the Eastern District of Michigan.

Under the Justice Department consent decree, monitor Neil Barofsky has authority to exercise disciplinary powers within the UAW, investigate possible fraud or corruption and seek discipline against UAW officers and members.

Barofsky will design the new election system after consulting with the UAW.

Numerous UAW officers pleaded guilty to embezzling millions of dollars for their personal benefit, using the funds for liquor, cigars, golf outings and expensive hotel stays.

© Reuters. FILE PHOTO: A person carries a flag with the patch from the United Auto Workers (UAW) labor union during a May Day rally for media workers held by The NewsGuild of New York on International Workers' Day in Manhattan, New York City, New York, U.S., May 1, 2021. REUTERS/Andrew Kelly

In August, FCA US, the North American operating subsidiary of Stellantis was sentenced to probation after pleading guilty to making more than $3.5 million in illegal payments to UAW officers. FCA paid a $30 million fine.

The UAW represents about 400,000 U.S. workers, including workers at Detroit’s Big Three automakers and in other fields. At its peak in 1979, the union had a membership of some 1.5 million.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.