TY - JOUR
T1 - Balancing Rights and Responsibilities in Remedying Union Corruption
T2 - The Case of the United Auto Workers (UAW)
AU - Masters, Marick F.
AU - Goeddeke, Frank
AU - Gibney, Ray
AU - Volz, William
N1 - Funding Information:
Involved FCA and UAW officials. In fact, General Motors filed suit against the FCA for damages incurred by selected FCA officialdom who illegally influenced the UAW to make concessions that would give FCA a competitive advantage relative to the other U.S.-based auto manufacturers. General Motors’ amended suit filed in August 2020 alleged that “starting no later than July 2009, FCA paid millions of dollars in ‘prohibited payments and things of value to UAW officers and UAW employees’ and the UAW itself including through the UAW-FCA joint training center (the National Training Center or ‘NTC’) and, in return, received ‘benefits, concessions, and advantages for FCA in the negotiation, implementation, and administration of the collective bargaining agreements between FCA and the UAW.’ During the course of this audacious bribery scheme, two collective bargaining agreements (“CBAs”) were negotiated with FCA—in 2011 and 2015— both subject to corruption in those negotiations and the implementation such that they directly harmed GM.” These broader charges against the FCA and, by inference, the UAW raise fundamental questions about financial relationships between a company and a union, in this instance through joint training centers funded by the company. Access to such large amounts of discretionary funds may tempt the corruption of the labor-management relationship. The exploitation of the UAW officials by the FCA through illegal payments paved the way for the corruption of the union to the benefit of the company in its labor-management relations, arguably, according to the GM, at the expense of its competitors.
Publisher Copyright:
© 2022, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
PY - 2022/12
Y1 - 2022/12
N2 - The recent UAW scandal implicating the union’s highest-ranking officers raises questions about how to remedy such misconduct. Designing appropriate remedies requires understanding the rights and responsibilities of unions and their members in relation to each other. We examine the nature and scope of this scandal, whose tentacles emanated from the UAW’s joint administration of training centers operated with the Detroit 3, to illuminate the adequacy of the various remedies, including penalties, imposed on the union and the FCA (now Stellantis). Our analysis addresses the extent to which the remedies serve the delineated rights and responsibilities as well at meet the practical and principled criteria used to evaluate their effectiveness. The paper proceeds to provide a progress report on the implementation of the full complement of remedies inclusive of those proposed by the court-appointed Monitor. We find that the reforms are extensive in terms of addressing financial controls and incorporating a more rigorous ethical regimen but fall short in fundamentally altering the flawed culture which gave rise to wrongdoing. Further analysis of the relative costs and benefits of the remedies in terms of addressing the evaluative criteria needs to be done over next several years before firm conclusions can be reached.
AB - The recent UAW scandal implicating the union’s highest-ranking officers raises questions about how to remedy such misconduct. Designing appropriate remedies requires understanding the rights and responsibilities of unions and their members in relation to each other. We examine the nature and scope of this scandal, whose tentacles emanated from the UAW’s joint administration of training centers operated with the Detroit 3, to illuminate the adequacy of the various remedies, including penalties, imposed on the union and the FCA (now Stellantis). Our analysis addresses the extent to which the remedies serve the delineated rights and responsibilities as well at meet the practical and principled criteria used to evaluate their effectiveness. The paper proceeds to provide a progress report on the implementation of the full complement of remedies inclusive of those proposed by the court-appointed Monitor. We find that the reforms are extensive in terms of addressing financial controls and incorporating a more rigorous ethical regimen but fall short in fundamentally altering the flawed culture which gave rise to wrongdoing. Further analysis of the relative costs and benefits of the remedies in terms of addressing the evaluative criteria needs to be done over next several years before firm conclusions can be reached.
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U2 - 10.1007/s10672-022-09423-4
DO - 10.1007/s10672-022-09423-4
M3 - Article
AN - SCOPUS:85139255414
SN - 0892-7545
VL - 34
SP - 385
EP - 411
JO - Employee Responsibilities and Rights Journal
JF - Employee Responsibilities and Rights Journal
IS - 4
ER -