January 18, 2021

Volume XI, Number 18

Advertisement

January 15, 2021

Subscribe to Latest Legal News and Analysis

More Fallout from UAW Corruption Scandal: Another Former President Indicted

The United Autoworkers (UAW) union just can’t escape its ongoing embezzlement and bribery scandal. Mere months after former president Gary Jones pled guilty to corruption charges, another former UAW president, Dennis Williams, was indicted on a count of conspiracy to embezzle union funds. The charge carries a maximum five-year prison term and a $250,000 fine. 

The charges against Williams allege that hundreds of thousands of dollars in union funds were used on various improper expenditures, including housing for his friends in Palm Springs, California; golf clothing and other related merchandise; rounds of golf outside; and certain meals, liquor, and cigars. Needless to say, those typically aren’t the things workers expect their union dues to go towards.

Williams is accused of conspiring with at least six other senior UAW officials to embezzle union funds derived from employee-paid union dues. So far, 15 people have been charged in connection to the scandal, and eleven union officials have plead guilty to charges including racketeering, embezzlement, conspiracy, and tax fraud. Among the officials to plead guilty is former UAW president Gary Jones, who was accused of conspiring with UAW associates to embezzle more than $1 million. It remains to be seen if Williams will fight the charges or plead guilty like Jones.

The indictment against Williams comes at a time when the Department of Justice has proposed subjecting the UAW to 10 years of federal oversight to eliminate corruption within the union, one of the longest periods of federal supervision in recent history. The agreement, however, would stop short of a full federal takeover of the UAW under the Racketeer Influenced and Corrupt Organizations (RICO) Act, avoiding the type of government trusteeship which the Teamsters union underwent following its prosecution in the late 1980s. In addition to the federal oversight, U.S. Attorney Matthew Schneider has stated that he is in favor of implementing the direct election of union officials to the UAW’s executive board, rather than the current set-up in which UAW executives are elected by delegates. 

The investigation into the UAW and the charges against Williams are further steps forward in the Justice Department’s effort to ensure that unions have honest and ethical leadership that is dedicated to serving its members, and not serving themselves. The ongoing investigation and charges seem to show no signs of slowing down, and likely won’t be an asset to the UAW as it tries to regain ground among workers. It remains to be seen how big of an impact the appearance of union corruption will have on union membership.

Advertisement
© 2020 BARNES & THORNBURG LLPNational Law Review, Volume X, Number 245
Advertisement

TRENDING LEGAL ANALYSIS

Advertisement
Advertisement

About this Author

Frank T. Mamat Labor Relations Lawyer Barnes and Thornburg
Attorney in Charge

A range of entities, from the United Nations to small, two-person businesses, along with construction companies, and trade and business associations – come to Frank because of his nearly 45 years of deep experience helping companies, contractors and employers with their complex labor and union matters.

Through the years, Frank has successfully counseled clients on virtually every type of labor matter. He also helped the Michigan Senate in 2012 prepare Michigan's "Right to Work" law.

In particular, he provides counsel...

947-215-1320
Associate

Alex focuses his practice on assisting employers facing various employment litigation issues in federal and state courts. Specifically, he counsels and represents employers in a range of actions involving harassment, retaliation, discrimination, wrongful termination, and wage and hour claims.

He understands the nuances of helping clients document and present a strong case. His litigation experience includes serving as, while with a Michigan law firm, a special assistant attorney general representing the Michigan Department of Transportation in various litigation proceedings. For...

947-215-1322
David J. Pryzbylski, Barnes Thornburg Law Firm, Indianapolis, Labor Law Attorney
Partner

David concentrates a large portion of his practice on assisting employers with traditional labor matters. His deep experience includes collective bargaining, work stoppages, arbitrations, union avoidance training and strategies, union representation elections, unfair labor practice charges, contract administration, and various other labor relations issues.

David has helped companies secure favorable outcomes with labor issues around the country. He has experience with numerous labor unions, including the Steelworkers, Teamsters, Laborers, Sheet...

317-231-6464
Advertisement
Advertisement