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posted by martyb on Saturday January 27 2018, @03:04PM   Printer-friendly
from the fat-dumb-and-happy dept.

Detroit News reports, http://www.detroitnews.com/story/business/autos/2018/01/22/iacobelli-fca-guilty-plea/109718250/

Fiat Chrysler Automobiles NV officials paid more than $1.5 million to United Auto Workers officers and employees to sway union contract negotiations, federal prosecutors said, part of a $4.5 million corruption scandal involving Detroit's No. 3 automaker.

The accusations made Monday in a plea agreement with former FCA labor negotiator Alphons Iacobelli say for the first time in the investigation that executives' actions were intended to corrupt UAW contract negotiations to favor Fiat Chrysler.

The plea deal suggests the corruption was more widespread than previously disclosed. It lasted for years as Fiat Chrysler officials lavished UAW labor leaders with cash payments and luxury items, including airfare, jewelry and secret $50,000 payments.

After a laundry list of other bribes and (of course) a denial by the CEO of FCA, the story continues

Iacobelli sanctioned the use of training center credit cards by UAW leaders for personal expenses in a bid to keep senior labor leaders "fat, dumb and happy," according to a court filing.

Iacobelli is also accused of spending more than $1 million of union funds on luxury items, including his house, pool, outdoor spa and kitchen, a Ferrari and the two limited-edition, gold Montblanc fountain pens.

Has anyone else (besides the Feds) noticed how easy the UAW contract negotiations have been going since the great recession?


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  • (Score: 3, Interesting) by Anonymous Coward on Saturday January 27 2018, @03:13PM (6 children)

    by Anonymous Coward on Saturday January 27 2018, @03:13PM (#628882)

    http://www.detroitnews.com/story/business/autos/2018/01/26/uaw-president-defends-negotiations/109849904/ [detroitnews.com]

    The president of the United Auto Workers is defending the sanctity of the union’s bargaining process four days after former Fiat Chrysler Automobiles NV labor negotiator Alphons Iacobelli’s plea agreement showed that officials paid more than $1.5 million to UAW officers and employees to sway contract negotiations.

    “Let me speak clearly. Al Iacobelli by his own admission is a crook and a liar,” UAW President Dennis Williams wrote in a letter to union members Friday. “While Mr. Iacobelli will have to answer for his criminal conduct, it appears that in an attempt to get lenient treatment from the government he is now falsely spinning his crimes as an effort to corrupt the collective bargaining process between the UAW and Fiat Chrysler. In reality, it is plain as day that his motivation was nothing more than outright greed.”
    ...
    ...
    In his letter, Williams refutes the $50,000 payments, which Iacobelli says were offered as retirement packages to select senior UAW officials: “What Iacobelli’s plea agreement fails to disclose is that these proposed retirement payments were reviewed by UAW legal counsel,” the union president wrote, “immediately rejected by me and never paid to anyone.”

    Iacobelli’s lawyer, David DuMouchel, declined comment Friday. The U.S. attorney’s office in Detroit did not immediately respond.

    After TFA, I jumped to the conclusion that the union officials were happy to take the bribes, but now with this story from yesterday, maybe not? Stranger things have happened...

    • (Score: 3, Funny) by Anonymous Coward on Saturday January 27 2018, @03:30PM

      by Anonymous Coward on Saturday January 27 2018, @03:30PM (#628893)

      Googled further, the World Socialists chime into the debate,

      https://www.wsws.org/en/articles/2018/01/26/pers-j26.html [wsws.org]

      And claim that they led the fight against the last big round of UAW negotiations. Now of course they are saying, "I told you so" about the corruption settlement, and are calling for current contracts to be renegotiated.

      More popcorn anyone?

    • (Score: 2, Insightful) by Anonymous Coward on Saturday January 27 2018, @03:51PM (4 children)

      by Anonymous Coward on Saturday January 27 2018, @03:51PM (#628900)

      I guess the invisible hand of capitalism has indeed given the finger to the working class yet again.

      • (Score: 3, Informative) by frojack on Saturday January 27 2018, @08:43PM (3 children)

        by frojack (1554) on Saturday January 27 2018, @08:43PM (#629133) Journal

        Seems to me that finger is being hoisted by the Union Bosses towards their own membership.

        Union Bosses stuffing dollar bills in their garters like they were strippers in seedy club.

        --
        No, you are mistaken. I've always had this sig.
        • (Score: 2) by c0lo on Sunday January 28 2018, @01:54AM (2 children)

          by c0lo (156) Subscriber Badge on Sunday January 28 2018, @01:54AM (#629273) Journal

          Union Bosses stuffing dollar bills in their garters like they were strippers in seedy club.

          I suspect you have proof for it, no?

          --
          https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
          • (Score: 1, Informative) by Anonymous Coward on Sunday January 28 2018, @01:58AM (1 child)

            by Anonymous Coward on Sunday January 28 2018, @01:58AM (#629277)

            "I suspect you have proof for it, no?"
            Umm:
            "Automobiles NV labor negotiator Alphons Iacobelli’s plea agreement showed that officials paid more than $1.5 million to UAW officers and employees to sway contract negotiations."

            • (Score: 2) by c0lo on Sunday January 28 2018, @02:08AM

              by c0lo (156) Subscriber Badge on Sunday January 28 2018, @02:08AM (#629285) Journal

              That's the testimony of a party with an interest, not proof.

              The other party denies and presents its own statement [soylentnews.org]

              --
              https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
  • (Score: 0) by Anonymous Coward on Saturday January 27 2018, @03:16PM

    by Anonymous Coward on Saturday January 27 2018, @03:16PM (#628888)

    Just like the Peaky Blinders.

  • (Score: 2, Insightful) by Anonymous Coward on Saturday January 27 2018, @03:52PM (9 children)

    by Anonymous Coward on Saturday January 27 2018, @03:52PM (#628902)

    I sort of commend the company for taking advantage of the fact that union management doesn't actually give a damn about anything other than lining their own pockets.

    The union is a monopoly. Monopolies are harmful. The proper solution is to break them up, in this case to a size of 1. That is, just workers without a union.

    The political "donation" (bribe) system makes it so much worse. Workers can't get the union off their backs because the union transfers a portion of the union fees to democrats. Never mind that most auto workers love Trump. It must really grate to see a cut of your pay going to oppose the person you want elected.

    • (Score: 5, Insightful) by KilroySmith on Saturday January 27 2018, @05:03PM (4 children)

      by KilroySmith (2113) on Saturday January 27 2018, @05:03PM (#628956)

      That's a bit extreme. I have no problems with workers negotiating with management, with leaders chosen from those working in the company. Corruption like this is far less likely when you're rubbing shoulders on the assembly line with the union head.

      • (Score: 0, Troll) by Anonymous Coward on Saturday January 27 2018, @05:15PM (1 child)

        by Anonymous Coward on Saturday January 27 2018, @05:15PM (#628964)

        If you think your union represents you, you're sadly mistaken. They're nothing but mobsters shaking down workers for false protection that wouldn't be needed if they disappeared... like Hoffa.

        • (Score: 5, Touché) by Anonymous Coward on Saturday January 27 2018, @06:08PM

          by Anonymous Coward on Saturday January 27 2018, @06:08PM (#629007)

          Ah, yes, the golden times before the unions, when worker rights were so much better than today! When our benevolent Companies were working hard to increase workplace safety and worker's quality of life! Oh, won't those days of capitalist paradise ever return!

          You are an idiot.

      • (Score: 3, Informative) by frojack on Saturday January 27 2018, @08:50PM (1 child)

        by frojack (1554) on Saturday January 27 2018, @08:50PM (#629137) Journal

        Union bosses never touch anything from the assembly line. Strictly suits.
        Shop stewards are there to keep the workers in line - make sure they never turn out one unit over their "standard", and report those who do.

        Workers themselves haven't negotiated as union representatives in decades.

        --
        No, you are mistaken. I've always had this sig.
        • (Score: 0) by Anonymous Coward on Tuesday January 30 2018, @05:41AM

          by Anonymous Coward on Tuesday January 30 2018, @05:41AM (#630203)

          The maintenance engineer's union for instance had all their chapter heads working the offices for testing and training when I took their test a few years back. Going from working the line to education and administration is fine if you've put in the grunt work first. Same with automotive professors at junior colleges (not sure if any university level programs have come into being yet.)

          Having said that, yes there are many other unions that have suits that never worked a day in their career field, fueled in some cases by nepotism. But there is always the opportunity for the workers to revolt and either force a management change or start a replacement union if they really wanted to. People get the leadership they deserve. I think the trends in American presidents prove that.

    • (Score: 4, Insightful) by srobert on Saturday January 27 2018, @06:16PM (3 children)

      by srobert (4803) on Saturday January 27 2018, @06:16PM (#629013)

      Those who argure against unions are about as well informed as flat earthers. I've worked union. I've worked non-union. Union is better. The economy works better for everyone when workers have representation.

      • (Score: 2, Insightful) by Anonymous Coward on Saturday January 27 2018, @07:12PM (1 child)

        by Anonymous Coward on Saturday January 27 2018, @07:12PM (#629048)

        I've worked union. I've worked non-union. Non-union is better. The economy works better for everyone when workers get to keep all their earnings instead of paying money to union slush-funds. Unions are like dinosaurs; they had their time, but that time is over. People know that. The only way unions survive today is to force workers to join a union in order to get a job. Unions would die tomorrow if every job-site was an open job-site.

        • (Score: 5, Insightful) by Joe Desertrat on Saturday January 27 2018, @11:11PM

          by Joe Desertrat (2454) on Saturday January 27 2018, @11:11PM (#629198)

          I've worked union. I've worked non-union. Non-union is better. The economy works better for everyone when workers get to keep all their earnings instead of paying money to union slush-funds.

          And thus history repeats itself. Workers have no rights and power to negotiate with employers. Unions form and with struggle workers gain rights. Laws, pushed by unions, are passed to support those rights. Workers with rights complain about still supporting the unions that gained them those rights. Unions lose power and start to fade away. Laws to support worker rights are repealed or made ineffectual. Workers lose rights and power to negotiate with employers...

      • (Score: 0) by Anonymous Coward on Saturday January 27 2018, @09:24PM

        by Anonymous Coward on Saturday January 27 2018, @09:24PM (#629153)

        No, the opposite is true. Because I say so.

        Argument over, I win.

  • (Score: 4, Insightful) by black6host on Saturday January 27 2018, @05:19PM (7 children)

    by black6host (3827) on Saturday January 27 2018, @05:19PM (#628969) Journal

    Parties on both sides want to make a lot of money. A lot more than they could ethically or legally. And they will do so, it's never going to stop. We read these stories and a few heads might fall to the axe and that's about it. Then we read about it again with different characters. New day, same stories.

    If you are from the USA and your mind gets boggled thinking about countries that are corrupt as hell, well, guess what? We are too, we just try to hide it better. In some other countries people just accept it because corruption is like a cockroach, you may get rid of one but you'll never get rid of all.

    • (Score: 2) by c0lo on Sunday January 28 2018, @01:58AM (6 children)

      by c0lo (156) Subscriber Badge on Sunday January 28 2018, @01:58AM (#629278) Journal

      Parties on both sides want to make a lot of money.

      [Citation needed]

      --
      https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
      • (Score: 0) by Anonymous Coward on Sunday January 28 2018, @02:07AM (1 child)

        by Anonymous Coward on Sunday January 28 2018, @02:07AM (#629284)

        [citation needed for demand of citation]

        • (Score: 2) by c0lo on Sunday January 28 2018, @02:26AM

          by c0lo (156) Subscriber Badge on Sunday January 28 2018, @02:26AM (#629288) Journal

          [citation needed for demand of citation]

          Find it here [soylentnews.org]

          --
          https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
      • (Score: 2) by black6host on Sunday January 28 2018, @04:25AM (3 children)

        by black6host (3827) on Sunday January 28 2018, @04:25AM (#629325) Journal

        RTFA or summary. Automaker wants better contract terms with it's workers, UAW leaders received money in a move at odds with the welfare of the people they represent.

        • (Score: 2) by c0lo on Sunday January 28 2018, @05:01AM (2 children)

          by c0lo (156) Subscriber Badge on Sunday January 28 2018, @05:01AM (#629340) Journal

          RTFA or summary.

          All I got is:

          Automaker wants better contract terms with it's workers, and alleges UAW leaders received money.

          --
          https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
          • (Score: 2) by black6host on Sunday January 28 2018, @11:31AM (1 child)

            by black6host (3827) on Sunday January 28 2018, @11:31AM (#629403) Journal

            Ok, I'll concede that point. People are presumed innocent until proven guilty. However, we have plenty of past history to look on (different actors) and I do think that corruption is rife and just a way of life for a lot of folks.

            • (Score: 2) by c0lo on Sunday January 28 2018, @11:59AM

              by c0lo (156) Subscriber Badge on Sunday January 28 2018, @11:59AM (#629407) Journal

              However, we have plenty of past history to look on (different actors) and I do think that corruption is rife and just a way of life for a lot of folks.

              This from the robber barons of today: "past performance is no indication for future outcomes."

              --
              https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
  • (Score: 2) by Bot on Saturday January 27 2018, @07:36PM (2 children)

    by Bot (3902) on Saturday January 27 2018, @07:36PM (#629064) Journal

    I warned you [soylentnews.org]...

    --
    Account abandoned.
    • (Score: 0) by Anonymous Coward on Saturday January 27 2018, @10:29PM (1 child)

      by Anonymous Coward on Saturday January 27 2018, @10:29PM (#629181)

      So you are a wop bot, Bot?

      • (Score: 2) by Bot on Sunday January 28 2018, @03:35AM

        by Bot (3902) on Sunday January 28 2018, @03:35AM (#629311) Journal

        I am a propaganda bot. Apparently unmaintained.

        --
        Account abandoned.
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