FCA, UAW co-conspirators in training center scandal, prosecutors say

The UAW-Chrysler National Training Center is at the center of a federal corruption case involving former FCA and UAW officials. Photo credit: Michael Wayland

DETROIT — Federal prosecutors for the first time have labeled Fiat Chrysler Automobiles and the UAW co-conspirators in the corruption scandal surrounding the automaker and union’s jointly run training center.

The allegation was in a May 25 federal court plea agreement obtained by The Detroit News.

The filing says: “From in and before 2009 through 2015, FCA executives conspired with one another, with FCA, with officials at the UAW and with the UAW, to violate the Labor Management Relations Act.”

It also says former FCA officials Alphons Iacobelli, Jerome Durden and others acting in the interest of the automaker concealed more than $1.5 million in “prohibited payment and things of value” paid to officers and employees of the UAW.

The allegation could expose the automaker and union to criminal charges, fines and government oversight.

Peter Henning, a Wayne State University law professor, told The Detroit News: “This does not bode well for Fiat Chrysler and the UAW. All along, the union and Fiat Chrysler have portrayed themselves as victims, but this indicates the government has a different view.”

Last week, the training center filed a lawsuit seeking to recover more than $4.4 million in damages, accusing Iacobelli, Durden and Monica Morgan, widow of former UAW Vice President General Holiefield, of conspiracy to embezzle the money.

This report will be updated.