DETROIT – The United Auto Workers and the U.S. attorney’s office in Detroit said they reached a settlement following a federal corruption investigation that’s stretched on for years.
The goal of the settlement is to reform the union in the wake of a bribery and embezzlement scandal. The deal includes federal oversight for years to come and a critical vote by the rank and file. The vote is expected to have a major impact on the union.
Members will decide whether to keep a delegate system that’s been in place for decades or change to a one person one vote direct election
READ: UAW, US Attorney reach deal to reform union after scandal
The investigation has led to 11 convictions, that includes two former presidents. Many officials were accused of conspiring with others to cover up the use of union cash for meals, cigars, golf and lodging in Palm Springs, California.
Federal authorities did not issue fines or penalties against the union, saying it would take away from members. But the UAW did repay $15 million to it’s training centers. And $1.5 million to the IRS. UAW President Rory Gamble said while a dark chapter is now closed, he’s still disappointed by officials who stole from union members.
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