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    United Auto Workers Seek to Shed a Legacy of Corruption

    After his predecessors’ imprisonment, the union’s president is being challenged for re-election in the first direct vote by its membership.DETROIT — For the United Auto Workers, the last five years have been one of the most troubling chapters in the union’s storied history.A federal investigation found widespread corruption, with a dozen senior officials, including two former presidents, convicted of embezzling more than $1 million in union funds for luxury travel and other lavish personal expenses. Since last year, the union has been under the scrutiny of a court-appointed monitor charged with ensuring that anticorruption reforms are carried out.The scandal tarnished a once-powerful organization and left many of its 400,000 active members angry and disillusioned.“You bet I’m mad,” said Bill Bagwell, who has been in the U.A.W. for 37 years and works at a General Motors parts warehouse in Ypsilanti, Mich., represented by Local 174. “That was our money, the workers’ money. I don’t like people stealing our money.”Now U.A.W. members have a chance to determine how much of a break from that past they want to make. In one of the changes prompted by the corruption scandal, the union this year will choose its leaders through a direct election — its first. Until now, the president and other senior officials were chosen by delegates to a convention, a system in which the union’s executive board could shape the outcome through favors and favoritism, and the results did not always reflect the views of the rank and file.“Everyone in power is in one party, and it’s been like that forever,” said William Parker, a retired worker who is eligible to vote and hopes to see a new slate of officers take over. “But now we’ve got one man, one vote, and we are mobilizing to change.”Over four days last week, at a sometimes-chaotic convention in Detroit, some 900 delegates debated a wide range of issues facing the union. Four members were nominated to challenge the incumbent president, Ray Curry, in the fall election. Under rules approved by the delegates, the union’s nearly 600,000 retirees can vote but cannot run for executive offices. If no candidate wins at least 50 percent of the vote, the top two will vie in a runoff.The convention proceedings dragged out each day as members stepped to microphones to offer motions, objections and requests for clarifications. A day after voting to increase stipends for striking workers to $500 a week from $400, they rescinded the move. At least three times Mr. Curry was scheduled to give a state-of-the-union address only to have the extended debates force postponements, and the convention adjourned without his address.Mr. Curry is seen as a strong favorite for re-election. He has held senior posts for more than a decade and became president in 2021 in the fallout from the corruption scandal. One potentially serious challenger is Shawn Fain, an electrician who has been a U.A.W. member for 28 years and holds a post with the union’s headquarters staff. He is part of a slate of candidates for senior posts, and is backed by a dissident group, Unite All Workers for Democracy, which has raised tens of thousands of dollars for the election campaign.Shawn Fain, a U.A.W. member for 28 years, is a potentially serious challenger for the union presidency.Sarah Rice for The New York Times“Members have to believe in the leadership and believe that the corruption is behind us,” Mr. Fain said.The other candidates are Brian Keller, a quality worker at Stellantis who for years has run a Facebook group critical of the union’s leadership; Will Lehman, a worker at a Mack Truck plant in Pennsylvania; and Mark Gibson, a chairman at Local 163 in Westland, Mich. Read More on Organized Labor in the U.S.Apple: Employees at a Baltimore-area Apple store voted to unionize, making it the first of the company’s 270-plus U.S. stores to do so. The result provides a foothold for a budding movement among Apple retail employees.Starbucks: When a Rhodes scholar joined Starbucks in 2020, none of the company’s 9,000 U.S. locations had a union. She hoped to change that by helping to unionize its stores in Buffalo. Improbably, she and her co-workers have far exceeded their goal.Amazon: A little-known independent union scored a stunning victory at an Amazon warehouse on Staten Island. But unlike at Starbucks, where organizing efforts spread in a matter of weeks, unionizing workers at Amazon has been a longer, messier slog.A Shrinking Movement: Although high-profile unionization efforts have dominated headlines recently, union membership has seen a decades-long decline in the United States.The challengers and Mr. Curry agree on most of the key issues at stake in next year’s contract negotiations. Members want automakers to resume cost-of-living wage adjustments, once a key element of U.A.W. contracts, and eliminate compensation differences between newer and more senior workers. Workers hired in 2007 or earlier earn the full U.A.W. wage of about $32 an hour and are guaranteed pensions. Workers hired after 2007 have started at lower wages and can work up to the top wage over five years. They get a 401(k) retirement account instead of a pension.Dorian Fenderson, a U.A.W. member at a G.M. location in Warren, Mich., started a year ago as a temporary worker at $17 an hour and after four months was made a permanent hire, making $22 an hour.“There are people making $34 doing the same work as me,” he said. “I know they’ve been here a long time, but it’s not really fair to people like me.”The opposition candidates have called for the U.A.W. to take a more confrontational line in contract negotiations to win back concessions now that the manufacturers are solidly profitable, and to push them to keep more production in the United States and use more union labor. G.M. is building four battery plants in a joint venture, and Ford Motor is building three with its own partner. The union will have an opportunity to organize those plants, but success is not guaranteed.“We are hemorrhaging jobs, and that has to stop,” Mr. Fain said.Mr. Curry said he was confident that battery plants would be organized and that the workers would be covered by U.A.W. contracts with the automakers. He said similar joint ventures had been represented by the union in the past, and noted that current contracts assign engine production to the U.A.W.“Our belief is that batteries are the powertrains of electric vehicles,” he said in an interview. “It’s just new technology. We have a right to negotiate that and establish those locations.”One potential weakness for Mr. Curry could be recent actions that have riled some members. He and members of his executive board recently increased pay and pensions for themselves and others working at the union’s headquarters. A vice president who is running for re-election spent $95,000 in union funds on backpacks that were embroidered with his name and were to be given to members at union gatherings, a move that could be seen as using union money for his campaign.In a July report, the court-appointed monitor, Neil Barofsky, wrote that he had 19 open investigations into possible improprieties, and said Mr. Curry’s leadership group had been uncooperative at times. Mr. Barofsky, a lawyer at a New York firm, wrote that the union’s leaders had uncovered mishandling of union funds by a senior official but that they had concealed the matter, though he added that cooperation and transparency had improved in recent months.Mr. Curry said that once he learned of the communications issues with the monitor, he stepped in and addressed the matter.“You have to read report to the end, and at the end the monitor talks about true transparency, response time, and change in counsel, the steps we have taken to shows we are moving in a positive direction,” he said. “And I’ve asked the monitor, if he has issues, to come directly to me so I don’t read about it in a report four months later.”Mr. Barofsky declined to comment beyond the findings in his report.Decades ago, the U.A.W. was a powerful organization that could influence presidential elections and consistently won increases in wages and benefits, often through hard-nosed negotiating and strikes. Its contracts with G.M., Ford and Chrysler set standards that helped pull up pay and benefits for working classes all around the country, union and nonunion alike.Mr. Fain’s grandfather kept his first Chrysler pay stub from 1937. For decades, the U.A.W.’s contracts with automakers set the standards for pay and benefits for the working class.Sarah Rice for The New York TimesBut its fortunes waned as the Detroit automakers steadily reduced their U.S. operations and struggled to compete as Toyota, Honda, Nissan and other foreign automakers built nonunion plants across the South. The 2009 bankruptcy filings by G.M. and Chrysler forced the union into once-unthinkable concessions, including the two-tier wage structure.Over the last 10 years, the automakers have rebounded, often with record earnings, and union workers have benefited. Last year, G.M. paid a profit-sharing bonus of $10,250 to each of its U.A.W. employees. But on other fronts, the union is still in retreat. A 40-day strike in 2019 was unable to prevent G.M. from closing a plant in Lordstown, Ohio, and workers have gone without cost-of-living adjustments to their wages since 2009.The corruption investigation was started around 2014 by the U.S. attorney in Detroit, and eventually found schemes that embezzled more than $1.5 million from membership dues and $3.5 million from training centers. Top union officials used the money for expensive cigars, wines, liquor, golf clubs, apparel and luxury travel.More than a dozen U.A.W. officials pleaded guilty. As part of a consent decree to settle the investigation, the U.S. District Court in Detroit appointed Mr. Barofsky to monitor the U.A.W.’s efforts to become more democratic and transparent.In July, a former U.A.W. president, Gary Jones, was released from federal prison after serving less than nine months of a 28-month sentence. Another former leader, Dennis Williams, served nine months of his 21-month sentence. Other convicted officials were also released after serving less than half of their sentences.At the convention last week, the shortened sentences were a source of frustration for many attendees, but as the proceedings pressed on, many backed the positions of Mr. Curry and the current executive board on issues that arose.David Hendershot, a forklift driver at a Ford plant in Rawsonville, Mich., said that he wanted the union to push for higher wages in contract talks next year, and that he wasn’t happy with the corruption that took place. But he isn’t sure he wants a wholesale change in leadership. “I’ll probably stick with what we’ve got,” he said. More

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    United Auto Workers reformers prevail in vote to choose president by direct election.

    Members of the United Automobile Workers union have voted decisively to change the way they choose their president and other top leaders, opting to select them through a direct vote rather than a vote of delegates to a convention, as the union has done for decades.The votes on the election reform proposal were cast in a referendum open to the union’s roughly one million current workers and retirees and due by Monday morning. Nearly 64 percent of the roughly 140,000 members who cast valid ballots favored a direct-election approach, according to a court-appointed independent monitor of the union.“It is time to move forward on behalf of the over one million members and retirees of the U.A.W. in solidarity,” the union said in a statement.The referendum was required by a consent decree approved this year between the union and the Justice Department, which had spent years prosecuting a series of corruption scandals involving the embezzlement of union funds by top officials and illegal payoffs to union officials from the company then known as Fiat Chrysler.More than 15 people were convicted as a result of the investigations, including two recent U.A.W. presidents.Reformers within the U.A.W. have long backed the one member, one vote approach, arguing that it would lead to greater accountability, reducing corruption and forcing leaders to negotiate stronger contracts. A group called Unite All Workers for Democracy helped organize fellow members to support the change in the referendum.“The membership of our great union has made clear that they want to change the direction of the U.A.W. and return to our glory days of fighting for our members,” said Chris Budnick, a U.A.W. member at a Ford Motor plant in Louisville, Ky., who serves as recording secretary for the reform group, in a statement Wednesday evening. “I am so proud of the U.A.W. membership and their willingness to step up and vote for change.”David Witwer, an expert on union corruption at Pennsylvania State University at Harrisburg, said the experience of the International Brotherhood of Teamsters, which shifted from voting through convention delegates to direct election in 1991, after an anti-racketeering lawsuit by federal prosecutors, supported the reformers’ claims.Dr. Witwer said the delegate system allowed seemingly corrupt union leaders to stay in power because of the leverage they had over convention delegates, who were typically local union officials whom top leaders could reward or punish.“Shifting the national union election process from convention delegates to membership direct voting was pivotal in changing the Teamsters,” he said by email.At the U.A.W., leadership positions have been dominated for decades by members of the so-called Administration Caucus, a kind of political party within the union whose power the delegate system enabled.Some longtime U.A.W. officials credit the caucus with helping to elevate women and Black people to leadership positions earlier than the union’s membership would have directly elected them.But the caucus could be deeply insular. The Justice Department contended in court filings that Gary Jones, a former U.A.W. president who was sentenced to prison this year for embezzling union funds, used some of the money to “curry favor” with his predecessor, Dennis Williams, while serving on the union’s board.Union officials have said Mr. Williams, who was recently sentenced to prison as well, later backed Mr. Jones to succeed him, helping to ensure Mr. Jones’s ascent. More