The lawsuit, filed Wednesday in
Details of the racketeering have been exposed in a federal probe of corruption at the union that has resulted in multiple arrests.
The lawsuit alleges that
'FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain concessions' from the union, Glidden said. '
A message was left Wednesday seeking comment from
In addition to
Authorities have alleged that payments were made through a training center jointly run by the company and the UAW. Durden handled the training center's finances, and Brown helped run the center.
Glidden told reporters that in the three UAW contracts, FCA was able to reduce its labor costs because the union allowed it to hire more temporary and lower-paid workers than GM.
'Many of the advantages FCA was able to obtain were denied to GM. That was part of the conspiracy,' Glidden said.
In 2007, the union agreed that new hires would be paid less than longtime workers, setting up a 'second-tier' of employees who were paid less. FCA had more second-tier workers than either of its
Glidden said GM is not suing the UAW because it believes that responsibility rests with FCA, which was the 'orchestrator' of the conspiracy. He accused FCA of mismanagement of 'stunning proportions' and should be held accountable.
'GM was chosen as a target by FCA, so that's why we're suing FCA,' he said. 'We were denied benefits that FCA received under their collective bargaining agreements and were damaged as a result.
Glidden said GM is seeking substantial damages in the case, but he could not give a specific amount.
Last week, a retired union vice president and former GM board member became the 13th person to be charged in the federal probe of the union and auto companies.
Ashton, a former GM board member, was charged with conspiracy to commit wire fraud and conspiring to commit money laundering. A guilty plea is expected on
Glidden said GM had no knowledge of the scheme that allegedly involved Ashton, and the lawsuit had nothing to do with that case.
'In the fullness of time, GM will address that conduct,' he said.
© Pakistan Press International, source