Money: GM accuses Fiat Chrysler of bribing UAW to get lower costs - - PressFrom - Canada
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Money GM accuses Fiat Chrysler of bribing UAW to get lower costs

23:15  20 november  2019
23:15  20 november  2019 Source:   msn.com

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FILE - This May 16, 2014, file photo, shows the General Motors logo at the company's world headquarters in Detroit. General Motors is suing Fiat Chrysler, alleging that its crosstown rival got an unfair business advantage by bribing officials of the United Auto Workers union. The lawsuit, filed Wednesday, Nov. 20, 2019,  in U.S. District Court in Detroit, alleges that FCA was involved in racketeering by paying millions in bribes to get concessions and gain advantages in three labor agreements with the union. (AP Photo/Paul Sancya, File) © Provided by The Associated Press FILE - This May 16, 2014, file photo, shows the General Motors logo at the company's world headquarters in Detroit. General Motors is suing Fiat Chrysler, alleging that its crosstown rival got an unfair business advantage by bribing officials of the United Auto Workers union. The lawsuit, filed Wednesday, Nov. 20, 2019, in U.S. District Court in Detroit, alleges that FCA was involved in racketeering by paying millions in bribes to get concessions and gain advantages in three labor agreements with the union. (AP Photo/Paul Sancya, File)

DETROIT (AP) — General Motors is suing Fiat Chrysler, alleging that its crosstown rival got an unfair business advantage by bribing officials of the United Auto Workers union.

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General Motors filed a federal racketeering lawsuit against Fiat Chrysler and its former executives on Wednesday, accusing the automaker of bribing United Auto Workers officials to receive GM says that Fiat Chrysler "corrupted" collective bargaining agreements between GM and UAW in 2009, 2011

GM is suing Fiat Chrysler , alleging that its rival got an unfair business advantage by bribing officials of the United Auto Workers union. The lawsuit alleges that Fiat Chrysler corrupted the bargaining process with the UAW in the 2009, 2011 and 2015 union contracts to gain advantages over General

The unprecedented lawsuit, filed Wednesday in U.S. District Court in Detroit, alleges that FCA was involved in racketeering by paying millions in bribes to get concessions and gain advantages in three labor agreements with the union.

Details of the racketeering have been exposed in a federal probe of corruption at the union that has resulted in multiple arrests starting in 2017.

The lawsuit alleges that Fiat Chrysler corrupted the bargaining process with the UAW in the 2009, 2011 and 2015 union contracts to gain advantages over General Motors.

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“FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain concessions” from the union, GM General Counsel Craig Glidden said. “FCA’s manipulation of the collective bargaining process resulted in unfair labor costs and operational advantages for it, causing harm to GM.”

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DETROIT, Nov 20- General Motors Co on Wednesday filed a racketeering lawsuit against Fiat Chrysler Automobiles NV, alleging that its rival GM alleges that FCA, under the leadership of former chief executive Sergio Marchionne, used bribes to UAW officials to corrupt the collective bargaining

Fiat Chrysler on Wednesday, accusing the company of bribing officials at the United Auto that Fiat Chrysler paid more than .5 million in payments and other things of value to UAW officers to GM estimates that it has incurred massive monetary damage in the form of higher costs that it seeks “Mr. Iacobelli worked for both [ Fiat Chrysler ] and General Motors , and he is currently in prison for his

In a statement, Fiat Chrysler called the lawsuit “meritless” and said it would defend itself vigorously. It also accused GM of trying to disrupt its proposed merger with French automaker PSA Peugeot as well as ongoing contract talks with the UAW.

“We are astonished by this filing, both its content and its timing,” Fiat Chrysler said. “We intend to vigorously defend against this meritless lawsuit and pursue all legal remedies in response to it.”

Glidden alleged that Fiat Chrysler CEO Sergio Marchionne, who died last year, was a “central figure” in the conspiracy, which was designed to put GM at a cost disadvantage to FCA.

In addition to Fiat Chrysler, the lawsuit names former FCA labor relations chief Alphons Iacobelli, and former FCA officials Jerome Durden and Michael Brown as defendants. All have pleaded guilty in the federal corruption probe, which has alleged that Fiat Chrysler bribed UAW officials to keep them “fat, dumb and happy.”

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General Motors Co. hit Fiat Chrysler Automobiles NV with a blockbuster racketeering lawsuit , Alleges late CEO Marchionne authorized bribes to force merger. GM says scheme affected UAW GM alleges that former Fiat Chrysler Chief Executive Officer Sergio Marchionne, who died last year

General Motors alleges that Fiat corrupted collective bargaining agreements between GM and the UAW in FCA’s manipulation of the collective bargaining process resulted in unfair labor costs and operational General Motors recently secured a labor deal with the UAW in October, ending one of

Authorities have said that payments were made through a training center jointly run by the company and the UAW. Durden handled the training center’s finances, and Brown helped run the center.

After leaving Fiat Chrysler, Iacobelli went to GM’s labor relations department in 2016. He was suspended after his indictment and fired in December of 2017.

In a separate statement, the UAW said it had multiple safeguards in place to ensure the integrity of its contracts negotiated with Fiat Chrysler, including reviews by local and international union officials.

“We are confident that the terms of those contracts were not affected by Iacobelli’s misconduct, nor that of any UAW officials involved in the misuse of joint program funds at FCA,” the statement said.

The UAW says it’s committed to make whatever changes are needed to make sure misconduct never happens again.

But Glidden told reporters that in the three UAW contracts, FCA was able to reduce its labor costs because the union allowed it to hire more temporary and lower-paid workers than GM.

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“Many of the advantages FCA was able to obtain were denied to GM. That was part of the conspiracy,” Glidden said.

In 2007, the union agreed that new hires would be paid less than longtime workers, setting up a “second-tier” of employees who were paid less. FCA has more second-tier workers than either of its Detroit competitors.

The Center for Auto Research, an industry think tank, calculated earlier this year that Fiat Chrysler’s total labor costs including wages and benefits were about $55 per hour, giving it an $8 per hour benefit over GM and a $6 advantage over Ford.

Glidden said GM is not suing the UAW because it believes that responsibility rests with FCA, which was the “orchestrator” of the conspiracy.

“GM was chosen as a target by FCA, so that’s why we’re suing FCA,” he said. “We were denied benefits that FCA received under their collective bargaining agreements and were damaged as a result.

Glidden said GM is seeking substantial damages in the case, but he could not give a specific amount. The company’s lawsuit says GM doesn’t seek to reduce wages or benefits of any UAW workers in the past or future.

Last week, a retired union vice president and former GM board member became the 13th person to be charged in the federal probe of the union and auto companies.

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DETROIT, Nov 20 (Reuters) - General Motors Co on Wednesday filed a racketeering lawsuit against Fiat Chrysler Automobiles NV , alleging that its rival engaged in bribery over many years to corrupt the bargaining process with the United Auto Workers ( UAW ) union and gain wage and work practices

Negotiators with the United Auto Workers and Fiat Chrysler Automobiles NV met Monday morning as the union shifted its focus to the automaker, a UAW Lower -paid production workers account for a greater percentage of Fiat Chrysler 's workforce than its crosstown rivals, which means bringing them

Joe Ashton is accused of receiving millions of dollars in kickbacks from a contractor who made watches for union members. The 58,000 watches, purchased through the GM-UAW joint training center, are still in storage five years later.

Ashton was charged with conspiracy to commit wire fraud and conspiring to commit money laundering. A guilty plea is expected on Dec. 4, according to a court filing Wednesday.

Glidden said GM had no knowledge of the scheme that allegedly involved Ashton, and the lawsuit had nothing to do with that case.

“In the fullness of time, GM will address that conduct,” he said.

Last month, the union settled with GM after a 40-day strike, and Ford workers reached an agreement shortly after. Intense talks with Fiat Chrysler began Monday, with the possibility of another strike possible due in part to union members’ distrust of UAW leadership.

___

AP Writer Ed White in Detroit contributed to this report

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