Home » FCA-trade unions, the case of payments to the UAW ends with a fine of 30 million

FCA-trade unions, the case of payments to the UAW ends with a fine of 30 million

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MILANO – An American federal judge upheld the agreement that was announced on January 27 between Fiat Chrysler Automobiles and the United States Attorney’s Office for the Eastern District of Michigan to end an investigation that began in 2017 into the payment of bribes of $ 3.5 million to some representatives of United Auto Workers, the most important American union in the automotive sector, in violation of labor laws.

With the January agreement, FCA, which after the merger with PSA is now part of the Stellantis group (14.4% owned by the holding Exor, which also controls the publisher of Republic), had admitted guilt in connection with the Labor Management Relations Act violation charges and agreed a $ 30 million fine.

Judge Paul Borman of the Eastern District of Michigan confirmed both the size of the fine, which is located in the upper part of the fork of 18-36 million dollars initially hypothesized by the prosecution, and the institution of an independent guarantor for a period three years. The guarantor will have to supervise the dissolution of the Detroit National Training Center (NTC), a training center through which personal benefits had been conveyed to some union members, and the definition of internal controls on the trusts that will take the place of the NTC.

The corruption investigation led to allegations being made against 15 different people, including three former FCA executives. The illicit payments included a $ 262,000 mortgage for a former Uaw vice president, personal expenses, and trips to Palm Springs and California for other union leaders.

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As reported by The Detroit News, Judge Borman described the nature and circumstances of the crime as “very serious”. Prosecutor’s representative, Erin Shaw, called the allegations against FCA one of, if not the greatest, violations of the Labor Management Relations Act, saying the company’s behavior undermined workers’ trust in representatives. trade union and company bargaining processes. “We are pleased that FCA has admitted its responsibility and that it is committed to reforms,” ​​Shaw added, noting that the reconstruction carried out by the investigation makes it clear that FCA’s behavior cannot be blamed on low-level executives: “It is very clear that in the past few years there was a problem with the culture of the company.”

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