Stock Groups

Corruption probe leads to first overhaul of UAW elections in decades

[ad_1]

Gary Jones (newly-elected president of United Auto Workers) addresses the 37th UAW Constitutional Convention in Detroit on June 14th, 2018, at Cobo Center. 

Bill Pugliano – Getty Images News | Getty Images News | Getty Images

DETROIT – A federal corruption probeThe merger into United Auto Workers led to the overhaul of its elections. This could bring an end to the more than 70 year-old leadership dynasty that saw recent leaders accept bribes, embezzle millions in member dues, and fund transfers.

UAW members and retired workers voted in favor of changing the way that leaders are elected from a delegate-based, weighted system to direct elections. The preliminary results were released Thursday by an UAW monitor.

Of 140,586 votes, 63.7%, favored adopting the “one member, one vote” system with 36.3% preferring the status quo, the monitor reported.

The U.S. Justice Department reached a deal with the union to award the vote and monitor, both of which are still being certified. to end a corruption investigation15 people were sent to prison by the UAW, which included two former presidents of UAW and three Fiat Chrysler executives.

Officials state that it is not clear how the new voting systems will affect companies with UAW workers, particularly the Detroit automakers. Current leaders can remain in power with a slate supported by a caucus, or they could run separately. There could be a restructuring of union leadership, which would give companies a wildcard position and allow for more experienced or combative bargainers to take over the leadership roles.

Kristin Dizzek, Senior Vice President of Research at the Center for Automotive Research said that there could be either one or many or all new leaders in the Union’s helm after the elections. Companies should expect that regardless of who wins (caucus or not), these people will want to give value to their members in order to win again. You can get workers better contracting to keep your power.

UAW’s changes come amid an eroding union movement that involved strikes by workers. Many of these workers want to be paid for their work during the outbreak of coronavirus in key industries like healthcare and manufacturing. The UAW is also leveraging President Joe Biden’s support. loudly and continuouslySupported unions and worker organizing.

A year before pivotal contract negotiations, the first direct election will be held in 2022. General Motors, Ford Motor StellantisFormerly Fiat Chrysler

Reuther Administrative Caucus

UAW has two groups: an international and a local. The International runs operations and coordinates national bargaining. This group is called the “International Executive Board,” which is comprised of elected union representatives.

A voting system in which local union representatives cast a weighted, based on how large their membership is to elect international leaders will be replaced by the new one. For decades, the leaders ran as a slate of candidates with very little opposition.

Many local union members voted for their delegate but criticised the procedure as a way to get rid of results predetermined by the Reuther Administrative Caucus.

Walter Reuther is the group’s name. He was a prominent UAW leader who held office from 1946 to 1970 under that system. Since Walter Reuther led the union, whatever slate of candidates the caucus supported was essentially defeated by the vast majority.

The union’s smooth and peaceful transitions of power throughout the years has been a significant benefit, according to supporters of its traditional system. Critics claim it enabled leaders to pick their successors, and it incentivized local representatives to support the caucus with the hope of being elected to the international union or to be given higher-paying positions.

An annual salary for leaders in an international union could reach hundreds of thousands of dollars. Smaller rolls of organizers, assistants and servicing representatives can reach up to $100,000.

More accountability?

Scott Houldieson from Indiana, who is a Ford employee, stated that the UAW conventions’ previous elections allowed for leaders to continue their work without oversight. Houldieson believes that the system has “bred” recent corruption.

Houldieson is a strong supporter of the principle of “one vote, one member” and has voted in opposition to the Reuther Administrative Caucus. Houldieson is now part of Unite All Workers for Democracy, which intends to challenge the Reuther administrative Caucus in next year.

In a telephone interview, he stated that “the reason I have been so supportive is because we need to create accountability into our system.” “I believed that the international leadership of our organization was not in our best interest.”

FBI agents loaded materials into a truck at Gary Jones’ home on Wednesday, August 28, 2019, after they left the office of United Auto Workers President Gary Jones.

Michael Wayland/CNBC

Frank Goeddeke (a Wayne State University professor in management), says the implementation of the new system will have an impact on UAW members, as well as on companies.

Goeddeke co-wrote the book on the UAW, “The Devil is Always in the Details.” “I believe that officers with one vote per member will have a greater awareness of the feelings that members may feel about certain items.

Houldieson called the new voting process a “huge” step in the right direction, but claimed it was only a first step towards overhauling the union. The federal moderation of the union is likely to continue at least through the middle decade.

[ad_2]