As leaders with the United Auto Workers union negotiate a new contract this week with General Motors executives, a former union negotiator admitted in court to receiving at least $1.5 million in kickbacks from union vendors.
FBI agents finish loading materials into a truck out of the home of United Auto Workers President Gary Jones on Wednesday, Aug. 28, 2019.ANN ARBOR, Mich. – As leaders with the United Auto Workers union negotiate a new contract this week withexecutives, a former union negotiator admitted in court to receiving at least $1.5 million in kickbacks from union vendors.
Prosecutors have not publicly connected GM or its executives to Grimes as they did with a separate corruption case involving Fiat Chrysler and UAW executives. There also were no allegations Grimes' actions were meant to impact the UAW's negotiations with GM as there was with the Italian-American automaker.
"Mr. Grimes is devastated by his actions," Manley, standing in-front of Grimes, told reporters after the hearing. "He has over 30 years devoting his time to the UAW. He loves the UAW. He's crushed by what he has done to their reputation and is owned up to his actions and is going to suffer great consequence because of that."
Grimes' plea is a major milestone in a multiyear probe by the Department of Justice into one of America's largest unions. Grimes is the first person not affiliated withto be charged as part of the investigation, which had previously led to convictions of eight union and company officials affiliated with the Italian-American automaker.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Auto union workers overwhelmingly vote to authorize strikes at GM, Ford, Fiat ChryslerThe United Auto Workers said about 96% of members for each of the automakers supported the action. That's slightly down from negotiations four years ago, when workers at GM and Fiat Chrysler supported a strike by 97% and Ford at 98%.
Read more »
Selling New Cars Proves Unprofitable For Most Auto DealersFor the first time since the Great Recession, the average U.S. new car dealer operated at a financial loss in 2018. To survive, dealers are now dependent on financial incentives from automakers. This shift in dealership profitability is reshaping an industry that is over a century old.
Read more »
Frankfurt Auto Show: No-Shows Underline Parlous Industry StateThe Frankfurt Auto Show marks the start of the much delayed electric car revolution, but the timing couldn’t be worse as the industry faces multiple challenges which threaten to wipe out profits and shake it to the core.
Read more »
Amid Rising Hot-Car Deaths, Auto Makers Agree to Back-Seat AlertsIndustry groups plan rear-seat technology on nearly all cars and trucks to help avoid children being left in cars. The plan doesn’t stipulate motion detection that child-safety groups have pushed for.
Read more »
He got into Harvard. And now he finally got into the United StatesIsmail Ajjawi, a Harvard student who said he was denied entry into the U.S. because of his friends' social media posts, arrived in Boston this week in time for the start of classes.
Read more »
With contract expiration looming, UAW targets GM first for talksThe United Auto Workers union on Tuesday said that it would target General Motor...
Read more »