U.S. Corruption Probe Involving Lavish Parties, Champagne Hits Another Top UAW Official

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Just two days before the UAW’s contracts with Detroit automakers were due to expire, U.S. prosecutors arrested and charged a senior union official on Thursday with embezzlement, releasing a complaint that alleges he spent member dues on lavish parties for union leaders, with liquor, cigars and women to light them.

Negotiators from the United Auto Workers already faced contentious talks with General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV (FCA), focusing on thorny issues like healthcare costs and profit-sharing at a time when U.S. new vehicle sales are declining.

But Saturday’s deadline could be overshadowed by the latest revelations in a mushrooming corruption scandal, of vast sums being spent on lavish entertainment by labor leaders – including $440 bottles of champagne originally created to please a Russian czar and scantily clad women to light union leaders’ cigars.

Read the original article here: reuters.com

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