The federal probe into the illegal use of blue-collar training funds, used to allegedly “keep union leaders fat, dumb, and happy” during the run up to the last round of Chrysler/UAW negotiations, continues to expand. You can see our past coverage on this issue here:
The most recent DOJ indictment involves Nancy Johnson, the UAW’s second in command in the union’s Chrysler Department. Ms. Johnson has been indicted for allegedly violating criminal provisions of the Labor Management Relations Act (LMRA). The Indictment alleges Ms. Johnson, while employed by the UAW, used funds intended to train blue-collar union workers for her own extravagant spending. The indictment, among other things, details the following alleged illegal expenditures by Ms. Johnson:
- $6,912 for dinner at the London Chop House in Detroit
- $4,587 for dinner at the LG Prime Steak House in Palm Springs
- $6,900 at the Renaissance Resort and Spa in Palm Springs
- $1,652 for a round trip limousine ride from Palm Springs to San Diego
These are only some of the expenditures detailed in the indictment. Other aspects of the indictment and the UAW’s response are discussed in more detail in this article
The UAW continues to publicly state to members and the public that its most recent CBA with Chrysler was not compromised by such activity and has strongly condemned Ms. Johnson’s alleged illegal activity. Ms. Johnson, however, is but the latest in a string of indictments of company and UAW officials that continue to gain momentum. As such, it appears the conclusion to this scandal is far from over and that its reach within the UAW continues to escalate to higher level UAW officials.