Trading in Highs for Lows—UAW President Under Investigation

Shawn Fain has enjoyed great success since taking on the role of a union leader, but the UAW president is facing an investigation by a federal monitor over allegations of retaliation against other union leaders. The federal investigation into the UAW has shattered the image of a united front that the union had been presenting to workers and the repercussions may cause ripples in all their future campaigns. The federal probe against UAW’s Shawn Fain is being led by monitor Neil Barofsky, who was appointed as a federal watchdog in 2021 and was involved with overseeing the previous accusations of embezzlement and bribery that the UAW had experienced. 

The previous federal investigation had ended with a guilty conviction but despite the UAW’s history, Fain remains unshaken under federal watch.

Image: UAW

UAW President Under Investigation

Shaw Fain took on the role as the president of the United Auto Workers Union back in 2023 after the previous leadership had to be changed due to their battles with the legal system. Fain came on and shifted the dynamics at the union immediately, taking on a more proactive approach to winning union support. The UAW’s win in Detroit last year was monumental and prophesied to be the first step of the union’s clean sweep across states but things have not gone on as well as expected with the defeat at a Mercedes plant in Alabama. Some assumed that would be the beginning of the UAW’s decline and this news regarding the UAW president’s investigation does spell trouble for the organization. 

The Federal investigation into the UAW reportedly began in February, when the monitor, “began investigating current members of the IEB—including the President, Secretary-Treasurer, and one of the Union’s Regional Directors,” according to CNBC. Unfortunately for the union, the UAW corruption investigation into Fain is not the only probe into the workings of the union. An unrelated investigation has also begun against a regional director over allegations of embezzlement. Secretary-Treasurer Margaret Mock who is also accused in the investigation has lashed out with her own allegations, stating that the UAW president under investigation had taken away her authority as punishment for refusing to authorize the expenses that Fain’s office wanted.

The Federal Investigation into UAW Has Been Met with Challenges

The multiple Federal investigations into the UAW have put the image of the union into jeopardy and while Fain claims he is open to the investigation, the monitor’s accusations of holding up the investigation do not reflect well on the organization. According to Reuters, Fain was ready to allow the monitor to investigate “whatever claims are brought to their office because we know what they’ll find: a UAW leadership committed to serving the membership, and running a democratic union.” 

However, according to the monitor, the UAW has not been forthcoming with presenting the necessary documents, having handed over 2,600 documents of the 116,000 that were relevant to the case. The monitor’s report also reveals that the union has cooperated in making key leaders and employees available for interviews, but these have been conducted without the benefit of the full range of documents. Again, this has only hurt the investigation. 

Where the Investigation into the UAW Stands

The UAW president under investigation had campaigned on being a leader free of corruption but the resistance to the monitor’s investigations does not look good. According to Marick Masters, professor emeritus of management at Wayne State University, who spoke to Detroit News, “It suggests a general management problem, which is understandable given the newness of officials and the volume they’ve had to deal with, the monitor and his policy recommendations, and the promises they’ve made of transparency. With all the activities they’ve been involved in—the strike, the contracts outside of the Big 3, and the organizing efforts—it may be too much for them to handle.”

The Federal investigation into the UAW may only reveal poor management as opposed to a more severe violation of legalities but we’re far from finding a conclusion to the story. The UAW investigation is not just a case of putting Fain under federal watch but also looks into the unions’ adherence to the 2020 consent decree between the organization and the government. 

Despite all the chaos, things are not all bad at the UAW. The union recently reached a tentative agreement with Ultium Cells in Ohio, where the starting wages of the employees are being increased from $26.91 USD per hour to $20 USD. After one year on the job, the hourly wages will go up to $35 USD. The UAW’s victory is a good sign of the union’s continued activity but it does come with the shadow of doubt regarding the future of the organization. 

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