UAW Not Cooperating in Corruption Probe, Says U.S. Attorney

Matt Posky
by Matt Posky

United States Attorney for the Eastern District of Michigan, Matthew Schneider, has said new details about the ever expanding UAW corruption probe have been trickling in. But he’s also criticizing the union for not providing adequate cooperation throughout the multi-year investigative process. Schneider indicated there was new evidence included additional details of malfeasance from former UAW President Gary Jones shared by the union in November. While the prosecutor did not offer details, he said it was the type of information that should have been reported to his office, not publicly.

Automotive News surmised he was likely referencing details released late last month by the union’s executive board in an effort to remove Jones and Region 5 Director Vance Pearson. That report included allegations that Jones let his daughter use a UAW-rented townhouse in Palm Springs, California. Sources familiar with the situation have confirmed that the union publicly released information against the two at roughly the same time it was handed it over to the U.S. attorney’s office.

“What we really would want is cooperation from the UAW,” Schneider said. “When I’m reading for the first time in the newspaper about criminal activity that hasn’t been reported to the Justice Department, that’s not helpful cooperation.”

From Automotive News:

Schneider made his first public comments about the UAW investigation to The Detroit News last week and has since granted interviews with other media outlets. He said the interviews have led to a number of tips from the public that have produced new information in the case as recently as Tuesday.

Schneider wouldn’t discuss specifics of the case and walked back previous comments to the News saying the investigation was about halfway completed.

“It’s very difficult to predict in any criminal investigation where you are,” he told Automotive News. He declined to say whether additional charges were coming, explaining that “all options are on the table” when asked about the possibility of placing the union in federal receivership under racketeering charges.

Schneider also said there was a clear distinction between saying one will cooperate and actively doing so. “Active cooperation isn’t, ‘Ask us questions and we’ll answer them,’ ” he said. “Active cooperation is, ‘We want to help you; here’s what we know.’ In order for this to be a more successful relationship, that’s what we’re looking for.”

The U.S. attorney said he’s waiting to see if the UAW’s acting president, Rory Gamble, will be more helpful than his predecessor. Obviously, the union responded by suggesting it’s doing more than its part to help end corruption.

“[It’s] disappointing that Mr. Schneider does not yet recognize the UAW’s sincere efforts at reform.” said UAW spokesman Brian Rothenberg. “The UAW has, as recently as last week, expressed a willingness to further work with the government on the issues of concern. And we continue to cooperate in providing the government any and all records requested.”

Thus far, the probe has resulted in 13 people being brought up on corruption charges with 10 pleading guilty. Federal prosecutors have indicated that more of both will undoubtedly come. Meanwhile, Gamble has been saying he “ won’t tolerate any inappropriate actions” and is aiming for the union to have the “highest standards of conduct” possible. He has also said he felt confident that the 12 remaining members of the union’s International Executive Board would not be swept up in the scandal.

“I don’t know,” Schneider said in response. “We will wait and see.”

[Image: UAW]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Conundrum Conundrum on Dec 04, 2019

    The UAW is as co-operative as Trump, then.

    • ToddAtlasF1 ToddAtlasF1 on Dec 04, 2019

      So you're saying that the UAW are the innocent victims of a bunch of scared criminals accusing them of what they're at risk of being exposed for doing? Interesting take. You must be smart and insightful.

  • Art Vandelay Art Vandelay on Dec 05, 2019

    If I were the FCA rank and file I'd have told them to shove their contract offer and affiliated with some other union. Why in this round of negotiation was it no big deal that the entity doing the negotiating had been taking bribes to throw their members under the bus?

  • Jonathan IMO the hatchback sedans like the Audi A5 Sportback, the Kia Stinger, and the already gone Buick Sportback are the answer to SUVs. The A5 and the AWD version of the Stinger being the better overall option IMO. I drive the A5, and love the depth and size of the trunk space as well as the low lift over. I've yet to find anything I need to carry that I can't, although I admit I don't carry things like drywall, building materials, etc. However, add in the fun to drive handling characteristics, there's almost no SUV that compares.
  • C-b65792653 I'm starting to wonder about Elon....again!!I see a parallel with Henry Ford who was the wealthiest industrialist at one time. Henry went off on a tangent with the peace ship for WWI, Ford TriMotor, invasive social engineering, etc. Once the economy went bad, the focus fell back to cars. Elon became one of the wealthiest industrialist in the 21st century. Then he went off with the space venture, boring holes in the ground venture, "X" (formerly Twitter), etc, etc, etc. Once Tesla hit a plateau and he realized his EVs were a commodity, he too is focused on his primary money making machine. Yet, I feel Elon is over reacting. Down sizing is the nature of the beast in the auto industry; you can't get around that. But hacking the Super Charger division is like cutting off your own leg. IIRC, GM and Ford were scheduled to sign on to the exclusive Tesla charging format. That would have doubled or tripled his charging opportunity. I wonder what those at the Renaissance Center and the Glass House are thinking now. As alluded to, there's blood in the water and other charging companies will fill the void. I believe other nations have standardized EV charging (EU & China). Elon had the chance to have his charging system as the default in North America. Now, he's dropped the ball. He's lost considerable influence on what the standardized format will eventually be. Tremendous opportunity lost. 🚗🚗🚗
  • Tassos I never used winter tires, and the last two decades I am driving almost only rear wheel drive cars, half of them in MI. I always bought all season tires for them, but the diff between touring and non touring flavors never came up. Does it make even the smallest bit of difference? (I will not read the lengthy article because I believe it does not).
  • Lou_BC ???
  • Lou_BC Mustang sedan? 4 doors? A quarterhorse?Ford nomenclature will become:F Series - Pickups Raptor - performance division Bronco - 4x4 SUV/CUVExplorer - police fleetsMustang- cars
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