General Motors sues Fiat Chrysler alleging union bribes

quote:

---

The big picture: The suit, filed in U.S. District Court in Detroit, aligns with the ongoing federal probe into corruption among some of UAW's top people and FCA's involvement. GM's accusation also comes as FCA and UAW are negotiating a contract fresh off a six-week strike at GM. Meanwhile, FCA is working on a planned merger with French automaker PSA.

---

quote:

---

On a press call with GM General Counsel Craig Glidden, the company referred to a “pattern of racketeering” by FCA between 2009 and 2015, which resulted in GM paying higher wages than FCA. It also allowed FCA to use more temporary workers and lower-paid second-tier workers than GM.

---

quote:

---

It goes on to claims that "after a failed bid to take over GM in 2015, FCA corrupted the collective bargaining process by structuring terms through bribed UAW officials that 'forced unanticipated costs on GM,'" Reuters reports.

---