GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

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Thread: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

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    GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    BLOOMBERG.COM
    November 20, 2019

    BREAKING NEWS:

    By Gabrielle Coppola
    November 20, 2019, 12:13 PM EST

    Alleges late CEO Marchionne authorized bribes to force merger
    GM says scheme affected UAW talks in 2009-2015, raising costs
    Market Summary > Fiat Chrysler Automobiles NV
    NYSE: FCAU
    15.02 USD −0.57 (3.66%)
    Nov 20, 12:55 PM EST ·
    Detroit Free Press
    November 20, 2019
    General Motors is suing Fiat Chrysler Automobiles and several former FCA executives over the ongoing corruption scandal that has led to 13 federal criminal charges and has implicated the current and immediate past presidents of the UAW.

    The federal racketeering lawsuit that GM filed Wednesday in U.S. District Court in Detroit names FCA and former FCA executives Al Iacobelli, Jerome Durden and Michael Brown as defendants. It also identifies former FCA CEO Sergio Marchionne in the complaint. He died last year.

    “We have alleged in the complaint that Mr. Marchionne is responsible for conceiving, executing and sponsoring the alleged wrongdoing," said Craig Glidden, GM's executive vice president and general counsel. “We have no present intent to pursue the UAW. Our focus is on FCA. We believe the responsibility firmly rests on the orchestrater of the wrongdoing … and we plan to hold FCA responsible.”

    Iacobelli had been vice president of employee relations at FCA, responsible for negotiating and implementing labor relations with the UAW. Durden was a financial analyst at FCA and Brown was director of employee relations at FCA, also involved in UAW negotiations. All three have pleaded guilty to criminal charges.
    Statement From General Motors:

    General Motors Files RICO Lawsuit Against Fiat Chrysler Automobiles
    Admissions Revealed in Multi-Year Justice Department Investigation Form Basis of Complaint

    2019-11-20

    DETROIT — General Motors Co. (NYSE: GM) today announced the filing of a federal racketeering lawsuit against FCA (FCA US LLC and Fiat Chrysler Automobiles NV) and former FCA executives who have pled guilty in an ongoing federal corruption probe. The lawsuit exposes a multi-year pattern of corruption that FCA used to undermine the integrity of the collective bargaining process and cause GM substantial damages.

    At the core of this lawsuit are clear admissions of wrongdoing made by former FCA executives revealed through the continuing criminal investigation by the U.S. Attorney’s Office in the Eastern District of Michigan.

    “This lawsuit is intended to hold FCA accountable for the harm its actions have caused our company and to ensure a level playing field going forward,” said Craig Glidden, GM Executive Vice President and General Counsel.

    FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labor agreements over time.

    FCA corrupted the implementation of the 2009 collective bargaining agreement. It also corrupted the negotiation, implementation, and administration of the 2011 and 2015 agreements.

    FCA’s manipulation of the collective bargaining process resulted in unfair labor costs and operational advantages, causing harm to GM.

    With this lawsuit, GM is seeking to reinforce that bargaining must be free from fraud and corruption. All damages recovered will be invested in the U.S. to benefit GM’s employees and grow jobs.







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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Alleges late CEO Marchionne authorized bribes to force merger.
    Welcome to the top automotive story of 2019. Stay tuned.









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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Quote Originally Posted by Perian View Post
    Welcome to the top automotive story of 2019. Stay tuned.









    .
    Plus it's always best to pin something on the dead guy.
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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Wow! Imagine the fireworks if Marchionne were still alive.

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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    And a retired UAW Vice President agreed today to plead guilty in December to Federal felony charges, in the ongoing UAW corruption scandal. It sure seems as though the corruption is as deep and as bad as it could get: https://www.detroitnews.com/story/bu...ty/4248006002/
    Last edited by 1999 White C5 Coupe; 11-20-2019 at 01:55 PM.

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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Anyone try to estimate the added cost to a new vehicle that the bribes, corruption and embezzlement have added? Think customers will get a rebate or refund?

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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    “We have alleged in the complaint that Mr. Marchionne is responsible for conceiving, executing and sponsoring the alleged wrongdoing," said Craig Glidden, GM's executive vice president and general counsel. “We have no present intent to pursue the UAW. Our focus is on FCA. We believe the responsibility firmly rests on the orchestrater of the wrongdoing … and we plan to hold FCA responsible.”

    HAHAHHAHAAHAHAH

    Man, just when you think GM MIGHT be trying to win back some good will they imply that the UAW is a wholesome entity.

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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Quote Originally Posted by bballr4567 View Post
    HAHAHHAHAAHAHAH

    Man, just when you think GM MIGHT be trying to win back some good will they imply that the UAW is a wholesome entity.


    It is clear that GM is scared to death of the UAW. Despite numerous felony convictions of high-level UAW members, GM has decided that there is no present intent to pursue the UAW. Thug tactics are still effective.

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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Quote Originally Posted by 1999 White C5 Coupe View Post
    It is clear that GM is scared to death of the UAW. Despite numerous felony convictions of high-level UAW members, GM has decided that there is no present intent to pursue the UAW. Thug tactics are still effective.
    Yeah, they're pee-their-pants terrified of the Mob.

    If I were in charge I'd move production to a non-union non-commie (same thing) country until ALL US or Canadian union production was gone. THEN after the UAW imploded or I was free of all obligations, I'd move back to the USA in right to work states no union no problem. Paying a $700 penalty PER VEHICLE because of Mob shakedowns is not how business should be done in a free nation. But the Mob is suicidally stupid, they think that by continuing to squeeze their marks they're going to get richer. Which is correct for the current gang of FFA (Future Felons of America) but at some point the scheme will tumble down. But psychopaths don't care about anyone but themselves and they sure don't worry about negative ramifications for future generations.
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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    FCA Statement in Response to GM Lawsuit

    November 20, 2019 , Auburn Hills, Mich. - We are astonished by this filing, both its content and its timing. We can only assume this was intended to disrupt our proposed merger with PSA as well as our ongoing negotiations with the UAW. We intend to vigorously defend against this meritless lawsuit and pursue all legal remedies in response to it.
    https://media.fcanorthamerica.com/ne...id=21394&mid=1

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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Mary Bara is an awful CEO. She is trying to save her ass.

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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    So, if FCA had merged with GM, then would the new, combined entity still be subject to the worse UAW terms that Marchionne orchestrated (or at least the GM portions of the new, combined company)? In which case wasn't Marchionne kind of shooting himself in his own foot? Or, would the new entity require new UAW contracts, though either way, the UAW probably wouldn't give back their "hard earned"/bribed benefits.

    Sleazy.

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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Alleges late CEO Marchionne authorized bribes to force merger.
    He made them an offer they couldn't refuse.

    I have a strange feeling Marchionne and Piech faked their own deaths.
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    Re: BREAKING: GM SUES FIAT CHRYSLER Alleging Corruption Undermined Its UAW Deals

    Quote Originally Posted by Bare View Post
    Mary Bara is an awful CEO. She is trying to save her ass.
    At this rate, Roger B. Smith will look like a saint compared to her.

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