U.S. accuses Fiat Chrysler, union of conspiring to break labor laws


DETROIT (Reuters) – Top officials of Fiat Chrysler Automobiles NV plus the United states (UAW) union conspired to violate U.S. labor laws, federal prosecutors alleged in the court document, saying an old executive in the automaker knew bribes paid to union leaders specified for to "grease the skids" in labor negotiations.

U.S. Justice department officials referred to as the company and the union "co-conspirators" in a document relevant to a guilty plea agreed by former Fiat Chrysler director of employee relations Michael Brown. The document was filed when using the U.S. District Court in Detroit on May 25. Its contents were reported via the Detroit News on Wednesday.

Brown pleaded guilty to one count of concealing a felony. The plea agreement stated they knew Fiat Chrysler executives authorized improper payments and settled travel, liquor, cigars together with other goods for UAW officials who served about the union's negotiating committee.

Fiat Chrysler Top dog Sergio Marchionne reports during the past the misconduct had “had nothing whatsoever regarding the collective bargaining process” and also the “egregious acts were neither identified by nor sanctioned" by way of the company. Fiat Chrysler did not have further comment Monday.

Outgoing UAW president Dennis Williams told union leaders at a conference in Detroit on Monday "our leadership team did not have familiarity with the misconduct – which involved former union members and former auto executives – until it was brought to our attention because of the government."

Brown pleaded guilty on May 25, in accordance with court papers, and will also be sentenced on Sept. 20. Five other individuals have pleaded guilty during the government’s ongoing investigation in to the UAW and Fiat Chrysler, for example the wife of any late UAW official, two other former UAW employees, former Fiat Chrysler v . p . Alphons Iacobelli and another former Fiat Chrysler employee.