Home / Business / General Motors filed a lawsuit against Fiat Chrysler, claiming that the company ordered UAW officials for contracts

General Motors filed a lawsuit against Fiat Chrysler, claiming that the company ordered UAW officials for contracts



"Although a full account of the harm caused by GM is impossible to know at present without discovering further details of the system, GM estimates that it has caused enormous monetary damage in the form of higher costs that they seek in relief. , "the complaint said. "This damage is a direct, substantial and predictable consequence of this bribery system orchestrated by the FCA Group [Fiat Chrysler parent group] and the numerous acts that fueled the system."

GM claims that the bribes were part of a plan to allow Fiat Chrysler to compete with General Motors and potentially force a merger.

The bribes were approved by the company's then CEO Sergio Marchionne, in violation of the Taft-Hartley Act, the 1

947 laws governing labor administration and laws against wire and mail fraud, the lawsuit claims.

The attentive legal movement comes on the heels and the huge strike, during which 46,000 UAW workers shut down General Motors 'production for nearly six weeks after the workers' four-year contract expired. UAW and GM signed a new contract in October that included wage improvements for workers, promising that the company would get full-time employees on permanent and mandatory increases each year.

The complaint also builds up evidence gathered in an ongoing probe for corruption that has affected the leadership of both Fiat Chrysler and the UAW. Three former Fiat Chrysler officials, including Alphons Iacobelli, the company's former vice president of employee relations, and a handful of former UAW officials have pleaded guilty to charges related to the investigation.

Along with the lawsuit, Gary Jones, UAW's president, resigned on Wednesday, said his attorney, J. Bruce Maffeo. Jones had left to take leave earlier this month in the middle of the investigation; Federal agents attacked his home in August. He has not been charged with any misunderstanding.

"While I do not know what my Lord and Savior Jesus Christ has been waiting for me, I will look to him for guidance and support in the coming days and months," Jones said in a statement. His departure was first reported by [DetroitNews .

Acting UAW President Rory Gamble announced a series of ethical reforms in the weeks following Jones's announcement, promising to make the Union's operations more transparent and ethical.

"The UAW is focused on continuing to carry out ethical reforms and major financial controls to ensure that the bug detected will never happen again," the union said in a statement released Wednesday by spokesman Brian Rothenberg.

"Mr. Iacobelli worked for both [Fiat Chrysler] and General Motors, and he is currently in prison for his crimes, which include misuse of funds from the joint program," the statement said. "Regarding the collective bargaining agreements negotiated with the FCA while Iacobelli was an FCA manager, we are convinced that the terms of these contracts were not affected by Iacobelli's misconduct or by UAW officials involved in the misuse of FCA joint program funds, which were ultimately ratified by our membership, was negotiated with the involvement of both local and international representatives and the process had multiple layers of checks and balances to ensure their integrity. "

Fiat Chrysler did not respond to an immediate request for comment. The company has a tentative agreement to merge with Peugeot manufacturer PSA Group, which would make the company it fourth largest car manufacturer in the world.


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