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Former UAW official gets 15 months in labor corruption case

DETROIT (Reuters) - A federal judge in Detroit on Monday sentenced the former United Auto Workers union vice president in charge of relations with Fiat Chrysler to 15 months in federal prison for misusing funds intended for worker training to pay for luxury travel, golf, liquor and parties for himself and other union officials. Norwood Jewell, 61, who led the UAW's national contract negotiations with Fiat Chrysler in 2015, is the highest ranking UAW official to be sentenced in connection with a wide-ranging federal investigation of corruption within the union that represents U.S. factory workers at Fiat Chrysler Automobiles, General Motors and Ford. Jewell pleaded guilty in April to a single charge of violating the Labor Relations Management Act. At the time, prosecutors proposed a prison sentence of 12 to 18 months. U.S. District Judge Paul Borman rejected Jewell's request to avoid prison and serve his sentence under house arrest. "He betrayed his position," Borman said from the bench. Jewell is the eighth former UAW or Fiat Chrysler official sentenced as part of the federal criminal investigation of UAW finances. Federal prosecutors are continuing to investigate the misuse of company and union funds at the Detroit automakers. Fiat Chrysler Chief Executive Mike Manley, during a meeting with reporters last week, declined to discuss whether the company is in talks with federal authorities or whether he has been interviewed by investigators. Federal prosecutors have said Fiat Chrysler officials conspired in the misuse of $4.5 million in training center funds. Fiat Chrysler's former vice president of labor relations, Alphons Iacobelli, pleaded guilty in January 2018 to charges of violating the Labor Management Relations Act and filing false tax returns. Prosecutors charged Iacobelli with making hundreds of thousands of dollars in improper payments to charities controlled by UAW officials, and agreeing to pay off the mortgage of a now-deceased UAW vice president, General Holiefield. Prosecutors said Jewell accepted over $90,000 in illegal payments from Fiat Chrysler for his own benefit and to pay for travel, golf outings, parties and other entertainment for senior UAW leaders. "The parties included thousands of dollars in Fiat Chrysler money spent on 20 boxes of cigars, ultra-premium liquor, personalized bottles of wine, and women paid to light the cigars of senior UAW leaders," federal prosecutors said in a statement on Monday.

Chrysler IPO to be filed as early as this week

An initial public offering for the Chrysler Group could happen this week, following Sergio Marchionne's comments to Financial Times in London, according to a report from The Detroit News. Fiat, which owns 58.5 percent of Chrysler, has been in a battle with the UAW retiree healthcare trust over its minority stake in the company. While the automotive union recognizes its role as a temporary shareholder, the two couldn't come to an agreement on how the shares should be priced.
As Marchionne explained to FT, a Chrysler IPO allows the market, rather than the two competing sides, to determine the value of the shares. The public offering is a risky move, which could potentially hang one side out to dry - if the shares go high, it's bad news for Fiat, but if they go low, the UAW stands to lose. Regardless of where the stock prices go in an IPO, though, it's a move that's being supported by analysts, who are quick to cite Chrysler's near-constant growth and a product lineup that is getting healthier with each new introduction.

Chrysler shows creative side with employee art exhibit

The United Auto Workers and Chrysler recently sponsored 92 works of art created by 50 of the automaker's unionized and salaried employees for the 2013-14 Artists at Work Exhibition, the ninth such show, which recognizes the creative process required to make art and manufacture vehicles. Chrysler says the event is "the country's only juried art show sponsored by a major corporation and a labor union." Unfortunately, the exhibit is not open to the public, but we have images to share of the winning pieces as well as other interesting exhibits in the gallery above.
"Art and manufacturing have more in common than you might think," says Keith Mickens, Chrysler-UAW National Training Center co-director from the UAW. "The creative process involved in producing a memorable image on a canvas can be used to help build quality vehicles on an assembly line."
A diverse range of art forms are showcased, from metal sculptures to ceramics to photography to paintings and more. Four Detroit-area professional artists narrowed down over 600 submissions to the 92 works of art that were shown at the exhibit, then awarded "Best of Show" prizes to three employees for their work (the first three images in our gallery) and selected 11 employees for honorable mentions. The overall winner is the sculpture above by Joseph Aiuto, titled "Childhood Anxiety."