The United Auto Workers union has been pushing for factories to close because workers are fearful of coming into contact with the coronavirus.
UPDATE: Auto workers strike against GM in contract dispute
More than 49,000 members of the United Auto Workers walked off General Motors factory floors or set up picket lines early Monday as contract talks with the company deteriorated into a strike.Read More
Former UAW President Gary Jones is accused of conspiring with others at the union to embezzle more than $1 million. The court filing against Jones describes a scheme to pocket cash and enjoy luxuries, including $13,000 in cigars.
A United Auto Workers union member said the threat of parts shortages at GM facilities is growing, but the automaker doesn’t expect to have to pause production at plants in Indiana, Michigan and Texas, according to spokesman.
The ratification means the United Auto Workers union has settled with all three Detroit automakers. Fiat Chrysler has a workforce of 8,156 in Indiana at four plants in Kokomo and one plant in Tipton.
The United Auto Workers union has replaced its auditing firm, added four internal auditors and hired a big accounting firm to study its financial controls in an effort to prevent a repeat of the embezzlement and bribery discovered in a federal probe of the union.
The United Auto Workers and Fiat Chrysler reached a tentative agreement Saturday on a new four-year contract that includes a total of $9 billion in investments but still needs final approval from workers.
General Motors is alleging that its crosstown rival got an unfair business advantage by bribing officials of the United Auto Workers union.
With General Motors and Ford out of the way, the United Auto Workers union wants a similar deal from Fiat Chrysler, which has a workforce of 8,156 in Indiana at four plants in Kokomo and one plant in Tipton.
The four-year agreement gives workers a mix of pay raises and lump-sum payments as well as a $9,000 ratification bonus.
A retired vice president of the United Auto Workers union on Wednesday became the 13th person to be charged in a growing federal investigation of corruption at the union and auto companies.
A high-ranking United Auto Workers official is facing felony charges of embezzlement and fraud, and prosecutors say that several top union officials conspired to steal more than $1.5 million from the union. The Detroit News said one of the unnamed union leaders is union President Gary Jones.
The agreement likely will mirror the pact approved last week by General Motors workers after a 40-day strike.
Some production workers could return to work as early as Friday night or Saturday morning, ending a walkout that was big enough to help push down September U.S. durable goods orders by 1.1%, the largest drop in four months.
Some workers question why union leaders agreed to let General Motors close three factories, wondering if corruption inside the UAW influenced the decision to side with the company.
Details on the four-year pact were posted Thursday on the UAW website as factory level union officials met to decide if they’ll approve the deal. Workers went on strike Sept. 16, crippling the company’s U.S. production and costing it an estimated $2 billion.
The deal was hammered out after months of bargaining but won’t bring an immediate end to the strike by 49,000 hourly workers. They will likely stay on the picket lines for at least two more days as two union committees vote on the deal, after which the members will have to approve.
The appearance of two key executives is a strong sign that bargainers are closing in on a contract agreement that would end the strike, which began on Sept. 16.
With the strike by factory workers against General Motors in its 29th day, there are signs that negotiators may be moving toward an agreement.
The strike has passed the point where GM can make up lost production, according to auto industry analysts.
Nearly four weeks into the United Auto Workers’ strike against General Motors, employees are starting to feel the pinch of going without their regular paychecks.