UAW President Rory Gamble (left) and U.S. Attorney Matthew Schneider announce a settlement agreement to end a years-long corruption investigation into the union on Dec. 14, 2020 in Detroit.
Michael Wayland / CNBC
DETROIT — Federal prosecutors have agreed to end a multiyear corruption probe into the United Auto Workers under a proposed civil settlement that will include an independent monitor overseeing the American union for six years.
U.S. Attorney Matthew Schneider and UAW President Rory Gamble said Monday that the settlement, which must still be formally approved by the government, comes after months of negotiations between the two sides, including several voluntary reforms by the union.
Other requirements under the deal include the union conducting a memberwide vote to potentially reform its voting process and making certain repayments, including a $1.5 million payment to the Internal Revenue Service. The UAW has already paid back about $15 million to training centers for improper chargebacks uncovered by officials.
Schneider said the settlement ends the investigation into the UAW, however, additional individuals could still be charged if other illegal activities are uncovered. He emphasized Gamble is not a target of the ongoing probe. He said investigations into Fiat Chrysler and Ford Motor are ongoing. He reconfirmed General Motors is no longer a target of the probe.
The investigation has led to convictions of 15 people, including two past UAW presidents, three Fiat Chrysler executives and a former GM board member who was a union leader.
When the federal investigation into the union was made public in July 2017, it focused on a training center jointly operated by the UAW and Fiat Chrysler. But it quickly expanded to probes into similar operations with GM and Ford.
As of August, Schneider said, Fiat Chrysler and Ford remained under investigation but prosecutors had investigated and cleared company officials with GM.
