GM Accuses FCA of Labor Racketeering in Lawsuit

General Motors filed a lawsuit today against Fiat Chrysler Automobiles for damages following unfair labor practices. GM sees these practices as having cost them and saved FCA substantial sums of money.

The lawsuit names three former FCA executives as well as the company, according to Automotive News. Those former employees have already pleaded guilty in an ongoing corruption probe involving the UAW.

GM’s lawsuit, though, does not name the UAW.

FCA, says GM, was involved in a “multiyear pattern of corruption … to undermine the integrity of the collective bargaining process and cause GM substantial damages.”

Not only was it involved, the company’s general counsel, Graig Glidden, told reporters, “FCA conceived of the conspiracy, orchestrated the conspiracy, orchestrated the fraud.”

Glidden also said that over the past several years, FCA’s labor costs have been substantially lower than GM’s. The lawsuit seeks to determine exactly how much of that can be attributed to unfair labor practices.

GM seems to believe that quite a bit of it did because it’s looking for “substantial damages.” Glidden says that the money would be reinvested in the US to increase jobs and benefit GM’s employees.

The lawsuit will also reinforce a fair bargaining process that is corruption-free, says GM.

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