UAW President Rory Gamble (left) and US attorney Matthew Schneider announce a settlement agreement to end a corruption investigation into the union on December 14, 2020 in Detroit.
Michael Valent / CNBC
DETROID – Federal prosecutors have agreed to end a multi-year corruption investigation into auto workers under proposed civil immigration, which includes an independent monitor overseeing the U.S. union for six years.
U.S. Attorney Matthew Schneider and UAW President Rory Gamble said Monday that the solution, which still needs to be formally approved by the government, comes after several months of negotiations between the two sides, including several voluntary reforms by the union.
Other requirements under the agreement include some repayments, including the union voting to reform its voting process and paying $ 1.5 million to the Inland Revenue Service. UAW has already reimbursed about $ 15 million to training centers for improper charging found by authorities.
Schneider said the settlement would end the investigation into the UAW, however, and additional charges could be levied if other illegal activities are exposed. He emphasized that the letter was not a signal of a formal antitrust inquiry into the allegations. He added that investigations into Fiat Chrysler and Ford Motor were ongoing. He reaffirmed that General Motors was no longer the target of an investigation.
The trial has convicted 15 people, including two past UAW leaders, three Fiat Chrysler executives and a former GM board member who was union leader.
When the federal inquiry into the union was made public in July 2017, it focused on a training center co-operating with UAW and Fiat Chrysler. But it quickly expanded to similar functions with GM and Ford.
As of August, Schneider said Fiat Chrysler and Ford were under investigation, but prosecutors allowed company officials to work with GM.