UAW auto union settles massive US corruption case

[WASHINGTON] The main American auto union announced on Monday it had reached an agreement with US authorities to bring to an end a far-reaching corruption scandal that has ensnared two union presidents.

United Autoworkers (UAW), which represents workers at the "Big Three" carmakers, has been working for a year to clean up following the theft and bribery scandal that led to convictions for 15 union or Fiat Chrysler executives.

"This civil resolution brings to a close the government's investigation and is testament to the hard work that has been done to make the necessary structural and cultural changes," UAW President Rory Gamble said in a statement.

"Under our current leadership, the UAW has proactively weeded out individuals who put their personal benefit over our members' interests and who abused their positions of trust to defraud our union and our membership," he said.

Under the terms of the proposed settlement to the corruption and fraud charges, a federal court would appoint an independent monitor with powers to investigate possible misconduct and discipline UAW officials.

The oversight would last for six years but could be ended earlier, according to the statement.

The scandal that shook up the once all-powerful union involved two UAW presidents and their underlings who siphoned of $1.5 million from the membership.

In addition, a UAW vice-president and other executives received US$2 million in kickbacks involving contracts with worker-training centers.

The union said it already paid back over US$15 million to the training centres.

The UAW also agreed to resolve a tax investigation by making a payment of US$1.5 million to the Internal Revenue Service.

Under the settlement, the union will hold a referendum on changing the UAW's election method to a direct model, where the entire membership can vote for the president and executive board members.

AFP