A criminal investigation of the United Auto Workers (UAW) union found it has a “culture of corruption.”
As a result of the investigation, a total of 16 union officials were convicted of crimes, including two former UAW Presidents:
- UAW President Gary Jones pled guilty for having helped to divert over $1 million from UAW funds to his own personal use and the use of another senior union official.
- UAW President Dennis Williams pled guilty to his role in the same scandal and was sentenced to 21 months in prison.
- On December 4, 2019, UAW Vice President Joseph Ashton admitted before a federal judge that he rigged a contract, pocketing $250,000 in kickbacks in the process.
One president of a UAW local, Brian Schneck, was quoted by The Detroit News as saying, “We put our blood, sweat, and tears into it, and this is what they do?”
Another union member, Scott Houldieson, is quoted by the same newspaper as saying, “It’s a betrayal of the membership that’s been covered up for quite some time now.”
The union officials admitted to covering up spending on luxury items that included private villas, cigars, liquor, and golf, among others.
The News found “UAW leaders embezzled money from worker paychecks, shook down union contractors, and schemed with auto executives.”
The union was found, over a five-year period, to have spent money on extravagant items that failed to further the interests of its members, including:
- $10,000 worth of cosmetic surgery for a relative.
- Over $1 million in pricey entertainment at casinos, bars, sporting events, and parties.
- More than $12 million in travel, including private jets, limos, and boat rentals.
- Nearly $4 million on expensive restaurant and bar tabs.
- More than $43 million on lavish hotels and resorts.
The union paid to build a cabin for former President Williams using interest from the union’s strike fund, which is bankrolled by the dues workers pay. The cabin was built with non-union labor.
Even after President Jones was implicated in the federal corruption investigation, the union kept him in office.
So, ask yourself this question: Do you really want to send the first two and a half hours of your pay every month to an organization with a history of corruption?