United Auto Workers union President Shawn Fain is currently being investigated by a federal court-appointed watchdog for alleged abuse of power, as detailed in a court filing submitted on Monday.
Neil Barofsky, the monitor, was initially appointed by the court in 2021 to conduct an investigation into the Union concerning a bribery and embezzlement scandal, which led to the convictions of former UAW leaders.
UAW President's Series of Allegation
Barofsky has been trying for several months to secure the Union's cooperation in obtaining the necessary information for a thorough investigation. Still, the Union has effectively delayed the monitor's access to the requested documents.
A 32-page status report filed on Monday detailed an investigation into Fain. It suggested that the Union may not have fully cooperated with monitoring Barofsky's document requests and that Fain retaliated against the UAW secretary-treasurer for declining to authorize certain expenditures benefiting individuals in the President's Office. Barofsky's report mentioned that the International Executive Board (IEB) passed a motion permitting Fain to revoke assignments from the secretary-treasurer amid misconduct accusations.
The report also looked into Fain's decision to remove a union vice president from overseeing the Stellantis Department in May 2024, who asserted that Fain took this action as retaliation for his refusal to participate in financial misconduct intended to benefit others. In a separate investigation, Barofsky received allegations suggesting a regional director may have been involved in potential embezzlement.
The Union initially cooperated following Barofsky's third report in July 2022. However, when Barofsky initiated investigations into executive members, such as Fain, the secretary-treasurer and one of the Union's regional directors, in February 2024, the level of cooperation from the UAW began to decline. The Union only provided approximately 2,600 out of the 116,000 requested documents. More than 80% of these documents were handed over just days before the most recent report was issued on June 6.
Although the Union had made UAW employees and senior leaders available for interviews with the monitor's investigative team, it had not fully cooperated in producing relevant documents for the investigation in a timely and complete manner, forcing the monitor to conduct interviews without access to potentially crucial and contemporary documents, as per the report.
UAW President's Statement
Fain released a statement on Monday night without directly addressing any matters outlined in the filing. He expressed that steering the Union in a new direction may necessitate shaking things up, acknowledging that such changes might unsettle individuals who prefer maintaining the status quo. Fain emphasized that the membership anticipates and deserves improvements beyond the conventional business practices.
The statement affirms the Union's encouragement for the monitor to thoroughly investigate any claims brought forward, asserting confidence in the integrity of the UAW leadership dedicated to serving its members and upholding democratic principles. It also emphasizes the Union's unwavering commitment to securing favorable contracts, expanding its membership, and advocating for economic and social justice within and beyond the workplace.
Breaching A Consent Decree
The report referenced a consent decree stipulating that the monitor possesses complete access to the requested documents and holds the authority to eliminate fraud, corruption, dishonesty, illegal behavior, and unethical practices from the UAW and its affiliated entities.
The UAW argued that it could withhold documents citing privilege. Still, Barofsky clarified that such privilege only applies to his attendance at board meetings, where he participates solely as an observer.
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