Fiat Chrysler’s U.S. unit said Wednesday it has reached an agreement to settle a criminal probe by U.S. prosecutors into conduct of some former employees tied to the ongoing UAW corruption scandal.
FCA US, which is now part of Stellantis, said it has agreed to plead guilty to a single count of conspiracy to violate the Labor Management Relations Act and pay a $30 million fine. The automaker has also agreed an independent compliance monitor for three years. The U.S. Attorney’s Office in Detroit said it would unveil more details of the settlement later on Wednesday.
Last month, the UAW agreed to independent oversight to resolve a five-year federal corruption investigation that ensnared two former UAW presidents.
The U.S. Attorney’s Office said the UAW had paid back over $15 million for improperly billing Ford Motor Co. and FCA for employing members who did not work at the training centers operated by the union and the companies.
Schneider’s office charged 15 former UAW officials as part of its investigation, and former presidents Gary Jones and Dennis Williams both have pleaded guilty to embezzling union funds.
Several UAW officers, including the two former UAW presidents, have pleaded guilty to embezzling millions of dollars for their personal benefit, using the funds to purchase expensive liquor and cigars and to pay for golfing outings and related equipment, and to stay at expensive hotels.
The UAW represents about 400,000 U.S. workers, including workers at the Detroit 3 automakers and in other fields. At its peak in 1979, the union had a membership of some 1.5 million people.
The investigation inquiry led to rival automaker General Motors filing a lawsuit against Fiat Chrysler last year, accusing the Italian-American company’s executives of bribing UAW officials to secure labor agreements that put GM at a disadvantage.
A federal judge in Detroit in July dismissed GM’s lawsuit that Fiat Chrysler had called “meritless.” GM has asked a federal appeals court to reinstate the lawsuit.
