The UAW’s reputation for being notoriously corrupt inspires the most media headlines on this subject, but the cookie jar of temptation is a constant temptation for other high-profile unions as well. A few of this month’s notable developments speak to how union officials cannot resist lining their pockets while sticking it to their members (and competitors):
• A 2019 GM racketeering lawsuit (alleging that Fiat Chrysler/Stellantis bribed UAW officials during contract negotiations) died in a U.S. Appeals court. However, the battle is not finished. GM, who claims billions of dollars in damages, vowed to continue the legal fight while Stellantis issued a statement to (oddly) refer to GM’s suit as a “third-rate spy movie” full of made-up accusations.
• A New York City local Teamsters Welfare Fund came under the U.S. Department of Labor’s microscope following scrutiny of the fund’s alleged violation of the Employee Retirement Income Security Act and the Affordable Care Act. The key violation in question? Teamsters Local 272 required plan participants to pay 90% of medical and pharmacy costs above a not-terribly-high annual threshold.
