UAW leadership in federal court
https://www.freep.com/story/money/ca...al/3201218002/
Former UAW Vice President Norwood Jewell has been charged in the wide-ranging FCA/UAW training center scandal.
The charge filed Monday in federal court in Detroit, alleging Jewell conspired to violate the Labor Management Relations Act, is the latest development in a case that exposed what authorities said was an attempt by Fiat Chrysler Automobiles to buy labor peace.
Jewell's fate had prompted speculation after his home was searched and as others connected to the case were charged and convicted. Jewell was the most senior official in the UAW's Chrysler department from 2014-2016.
Jewell's attorney, Michael Manley of Flint, issued a statement noting there have been "productive discussions" with prosecutors. Manley said he is not related to FCA's CEO, Mike Manley.
"We are aware of the information filed today by the government. We can confirm that we have had professional and productive discussions with the U.S. Attorneys office towards a fair and just resolution. We are confident that when the facts of the case come out as it relates to Mr. Jewell, his decades long reputation of honorable service to members of the UAW will remain intact," according to the statement.
Prosecutors said Jewell continued the "culture of corruption" in place during the leadership of his predecessor in the Chrysler Department, the late General Holiefield, and spent or approved expenses of thousands of dollars for steak dinners and other goodies.
After being elected a UAW vice president in 2014, Jewell was assigned to the union's Fiat Chrysler Department.
"Norwood Jewell had no previous experience with the Chrysler Department, nor was he familiar with any of the co-conspirators from the Holiefield era who had conspired with executives from FCA to violate the Labor Management Relations Act," according to the information filed with the court.
Prosecutors said Jewell "knowingly joined the conspiracy whereby officers and employees of the UAW would willfully request, receive and accept things of value worth over $40,000 from persons acting in the interest of FCA by failing to apportion the amounts attributable to the UAW, NTC and to Norwood Jewell personally. The things of value included travel, lodging and meals," the information said, referencing the UAW-Chrysler National Training Center.
Assistant U.S. Attorney David Gardey in the court filing pointed out two different open houses that Jewell held at the training center office in Warren, one in August 2014 and another in August 2015. The filing noted that Jewell "did not apportion any of the thousands of dollars in costs associated with the event to the UAW and instead directed payment of all of the costs of the event to be paid by the NTC using FCA funds, in violation of the Labor Management Relations Act."
But Gardey also noted purchases at restaurants that Jewell made, including more than $15,500 at LG's Prime Steakhouse and Indian Springs Canyons Golf Resort, both in Palm Springs, Calif.
The formal allegations against Jewell bring to eight the number of people charged in the case that prosecutors said had redirected millions of dollars meant for blue collar working training to former FCA and UAW officials. The No. 2 most senior person in the Chrysler Department, Nancy Johnson, was sentenced in December to one year and one day in prison.
The most senior former FCA official, Alphons Iacobelli, has been sentenced to 5 1/2 years in prison. Iacobelli, an ex-FCA vice president who helped himself to $37,000 jewel-encrusted pens, improvements to his lavish Oakland County home and even a Ferrari as part of the scheme, was to lead contract negotiations with the union before he abruptly left his position on the eve of bargaining in 2015.
Both FCA and the UAW have denied that the case indicated a pattern of corruption, a defense that has taken a hit as additional people have admitted guilt. Both the company and union have attributed the wrongdoing to bad actors. The union also has insisted that it has new safeguards in place.
The scandal is likely to have some effect on how negotiations with the Detroit Three this year are perceived.
UAW spokesman Brian Rothenberg released a statement Monday afternoon addressing the allegations against Jewell.
“We are deeply saddened by today’s news of criminal filings and understand the frustrations our members feel when allegations like this are made about a former officer. We have already implemented many reforms and enacted new policies to prevent any misuse of funds at the joint program centers from ever happening again, and we will continue to vigilantly review our practices to make sure any lax financial controls are identified and fixed going forward,” the statement said.
Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence.
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