Labor unions have one more item to add to their list of reasons why they are actually worse for the workers they supposedly represent.
An indictment released this month reveals a long-standing, and hefty corruption scandal between Fiat Chrysler Automobiles (FCA) and United Auto Workers (UAW). High ranking officials from the UAW were taking money that FCA was giving the union and putting in their own pockets instead.
The late former Vice-President of UAW General Holiefield and his wife Monica Morgan, along with other high-ranking UAW officials worked with FCA labor relations chief Alphons Iacobelli to siphon $1.2 million dollars into their personal accounts. This does not include the approximately $1 million that Iacobelli pocketed as well.
While the money did not come directly from the dues of the UAW members, it affected them nonetheless. The money came out of the funds that were set aside for employee training. A UAW collective bargaining agreement had secured these funds from FCA in order to help train the auto-workers that work under the UAW.
It remains to be seen whether some of the other people involved in the case will be charged as well although it seems it is likely that they will.
The current president of UAW, Dennis Williams, was quick to speak up about the incident in an attempt to defend his union.
“To be clear, these allegedly misallocated or misused NTC funds were not UAW dues nor were they union funds. These were monies funded by Chrysler pursuant to the collective bargaining agreement.
As your president, I am appalled by the conduct alleged in the indictment, which constitutes a betrayal of trust by a former member of our union.”
What Williams seemingly ignores is the fact that this money was still slated to go to the union workers in the form of training. So trying to brush off the incident by claiming the money did not belong to the workers is misleading.
The current CEO of FCA, Sergio Marchionne, was also quick to respond, saying that the actions “were of course neither known nor sanctioned” by the company.
What will unions have to do before people realize that all they do is take money from hard-working Americans and misuse it, and apparently pocket the money to by gold pens.