Just two days before the UAW’s contracts with Detroit automakers were due to expire, U.S. prosecutors on Thursday arrested and charged a senior union official with embezzlement, and listed several unnamed UAW officials who also were involved.
UAW negotiators already faced contentious talks with General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV (FCA). The focus is on thorny issues like healthcare costs and profit-sharing at a time when U.S. new vehicle sales are declining.
But Saturday’s contract deadline could be overshadowed by the latest revelations in a mushrooming corruption scandal, of vast sums being spent on lavish entertainment by labor leaders.
