FCA sentenced for paying more than $3.5M in bribes to UAW leaders

A federal judge on Tuesday sentenced Fiat Chrysler Automobiles NV to pay $30 million for conspiring to break federal labor laws by paying more than $3.5 million in bribes to United Auto Workers leaders.

FCA, now part of auto giant Stellantis NV, must pay the fine within the next 30 days after pleading guilty in March to one count of conspiracy to violate the Labor Management Relations Act. FCA is not required to pay any sort of restitution.

Fiat Chrysler Automobiles NV, now part of auto giant Stellantis NV, must pay a $30 million fine within the next 30 days after pleading guilty in March to one count of conspiracy to violate the Labor Management Relations Act

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The fine is part of a broader felony conviction settlement with federal authorities that includes the appointment of an as-yet-unnamed independent monitor for three years to oversee company compliance with labor laws and oversee the dissolution of a joint training center the United Auto Workers operated with Fiat Chrysler.

“The nature and circumstances of this offense are very serious,” Judge Paul Borman of the Eastern District of Michigan said during the sentencing. “The history and characteristics of the defendant relating to this charge show a prior pattern culminated in this and was resolved in this plea and sentence.”

The sentencing is part of the fallout of a years-long federal investigation into UAW corruption. The probe produced 15 convictions, including three former FCA executives. It revealed union leaders and auto executives broke federal labor laws, stole union funds and received bribes and illegal benefits from union contractors and FCA employees.

The pattern of illegal payments included paying off former UAW Vice President General Holiefield’s $262,000 mortgage, bankrolling a $25,000 booze-fueled bash for another labor leader and financing a $30,000 junket for UAW officials in Palm Springs and southern California. The payments were designed to secure concessions and advantages for Fiat Chrysler during contract negotiations, according to the government.

Calling FCA’s offense one of the largest, if not the largest, violation of the Labor Management Relations Act, Erin Shaw of the U.S. Attorney’s Office said the company’s acts have undermined the rank-and-file’s trust in the leaders and the collective bargaining process.

“We are pleased FCA has agreed to accept responsibility for its conduct and appears to be committed to making reforms,” Shaw said during the hearing. The facts of the case “make clear this was not the act of a rogue or low-level employee at FCA, and it is abundantly clear that there was a problem with the culture of this company in years past.”