Prosecutors Say FCA, UAW Conspired to Violate Labor Laws

June 13, 2018 at 10:00 AM

Federal prosecutors say Fiat Chrysler Automobiles NV and the United Auto Workers union co-conspired to illegally grant favors to union officials and make special payments to them, The Detroit News reports.

Both activities violate the Labor Management Relations Act. The charges, uncovered by the News in a court filing, challenge the assertions by FCA and the UAW that they were victims of a few rogue employees.

Prosecutors have not brought charges against the company or union. But they say the two organizations conspired to allow nepotism at a co-operated labor training center and transferred favors and cash to UAW officers.

The allegations are contained in court documents regarding a plea agreement with Michael Brown, a former FCA executive who helped run the training center. He and five other company and union officials have pleaded guilty to participating in the conspiracy, which diverted more than $1.5 million in the center’s funding to FCA and UAW representatives.