UAW faces more indictments, scandal
DETROIT — The embattled UAW is in for more indictments and more scandal, sources say, as scores of tips about corrupt labor leaders continue to pour in — all of which could end in a federal takeover of the nation’s sixth largest labor union.
U.S. Attorney Matthew Schneider said Thursday that once the criminal case is over — and it’s far from over — there’s a possibility that the federal government will step in and oversee the UAW.
“What we need to do is get the criminal cases further,” Schneider said, adding “we’ll be in a better position” to consider a takeover “after that is done.”
“All options are on the table. And (a takeover) is one of the options,” Schneider said.
As for what a federal takeover would look like, Schneider has said that it could include everything from a consent decree to changes in how leaders are elected to make the process more democratic.
“This isn’t a situation where the Justice Department would just impose its demands on the union ... This has to be an amicable discussion if and when we’re going to get there,” Schneider said in December. “Again, this is down the road. These things have to be discussed, talked about and, you know, have good negotiations.”
For now, Schneider said, the federal government is focused on the criminal investigation, which has led to charges against 13 ex-UAW and Fiat Chrysler Automobiles officials, triggered resignations, and planted a black eye on UAW leadership as three presidents in a row have come under scrutiny, the latest being President Rory Gamble.
According to sources familiar with the probe, Gamble is not a target of the corruption investigation.
However, the sources, who are not being identified because they were not authorized to speak to the media, said that federal agents are looking into financial ties between Gamble, retired UAW Vice President Jimmy Settles, who now works for Detroit Mayor Mike Duggan, and a vendor named Jason Gordon, who supplied UAW trinkets to the union, such as T-shirts and key chains.
Specifically, the sources said, the FBI is looking into whether that vendor gave cash kickbacks or bribes to UAW leaders in exchange for their help in securing trinket contracts. They are also looking into a tip that some of those bribes were handed over at the Bouzouki strip lounge in Greektown, possibly by a middleman, the sources said.
But Gamble himself is not a target, they said. Gamble has adamantly denied any wrongdoing, pledging transparency and accountability for the UAW since he took over presidential duties of the union last year. “I want to say this clearly to all UAW members and staff: I would not have accepted the role of president if I couldn’t withstand the scrutiny that I knew this job would bring,” Gamble wrote in a letter to union staff on Thursday in a response to allegations reported in The Detroit News.
Gamble acknowledged working with Gordon’s business, Custom Promotions, but defended the relationship. “In all those years of working with this vendor, they never approached me in any manner that was less than professional or questionable in any way, and I absolutely never requested or received any cash or kickback from that vendor or any other. Nor did I ever approach them in any unprofessional or questionable manner,” Gamble states in the letter.
