The U.S. Department of Justice announced Tuesday that Fiat Chrysler has agreed to pay a fine of $30 million after the auto giant pled guilty to providing more than $3.5 million in illegal payments and gifts to United Auto Workers officials.
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FCA US LLC pled guilty in March to violations of the Taft-Hartley Act by giving illicit money and gifts to officers of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America, or UAW. According to the DOJ, the financial exchanges took place between 2009 and 2016, and included extravagant meals, rounds of golf, designer shoes and lavish parties.
FCA US is the North American subsidiary of Stellantis NV, created by the recent merger of automobile manufacturer Fiat Chrysler Automobiles and Peugeot parent company Groupe PSA.
On Tuesday, U.S. District Judge Paul D. Borman ordered FCA to pay the agreed-upon fine and to serve a three-year term of probation. The auto company will also be subject to three years of oversight by an independent corporate compliance monitor, according to the DOJ.
“The sentencing of FCA marks a significant milestone in this historic case,” Acting U.S. Attorney Saima S. Mohsin said in a statement Tuesday. “Congress enacted the Taft-Hartley Act to ensure that union members could have confidence in their union leaders. FCA violated these principles through corruption.”
“By lavishing millions of dollars in gifts and cash upon UAW leaders, the FCA sought to improve its relationship with UAW leaders, and FCA thereby harmed the hardworking men and women of the UAW,” Mohsin said. “A compliance monitor and a significant fine are important steps towards ending this type of systemic corruption and deterring future corporate malfeasance.”
Prosecutors said FCA used the bribes to ensure any negotiations came out in favor of the company.
Possibly the most extraordinary gift of all, FCA executives paid off the $262,000 home mortgage of former UAW Vice President General Holiefield. Prosecutors claimed Holiefield, now deceased, and his widow also received hundreds of thousands of dollars funneled through Holiefield’s purported charitable organization and other sham companies under his control.
At least 15 high-ranking individuals from UAW and Fiat Chrysler have seen repercussions resulting from their involvement in the scandal, including: former UAW President Dennis Williams, his successor Gary Jones, FCA’s former VP of employee relations, former director of HR, and several financial analysts.
The UAW reached a separate deal with the DOJ in December, agreeing to be overseen by an independent monitor for up to six years, take steps to overhaul how it elects leaders, and pay a settlement of $1.5 million to the IRS.
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