UAW and IAM Controversies
The UAW was embroiled in a major corruption scandal that sent several high-ranking officials to prison. IAM has been involved in a number of corruption scandals as well.
What Controversies Have the UAW and IAM Been Involved In?
Both the UAW and IAM have been embroiled in corruption scandals in recent years.
In 2017, the federal government launched a corruption investigation at the UAW. The investigation found that UAW officials were embezzling members’ dues to pay for lavish parties, vacations, and gifts. More than a dozen officials, including two former union presidents, were found guilty.
After the scandal, the UAW was forced to have a court-appointed monitor oversee the union’s activities for six years. This June, the monitor released a report saying that the UAW’s current leadership was under investigation for retaliation and misconduct. The report also noted that the UAW’s current leadership had been “slow-rolling” documents requested by the monitor for his investigation.
20 IAM officials have been convicted of embezzlement or other financial crimes between 2013-2022, involving $1.7 million. In 2017, one of IAM’s national vice presidents authorized an audit into an IAM lodge which stole over $100,000 from members. That vice president claims he was demoted and eventually forced out of IAM’s leadership after authorizing the audit. He later sued the union for retaliation.
Does a Union Guarantee Job Protection?
Since 1970, dozens of UAW represented plants and facilities have closed with production being driven overseas due to increased labor costs. Since the UAW signed its new contracts with Detroit’s Big Three automakers, over 20,000 of the employees at those plants have been laid off.
Numerous airline production facilities represented by IAM have closed over the past 20 years. IAM represents machinists at Boeing, which has seen major outsourcing under IAM’s representation. Today, an estimated 70% of the components in Boeing airplanes are made outside the United States. Boeing has closed numerous facilities in the United States over the past 20 years, such as its Wichita, Kansas assembly plant, its El Paso, Texas factory, and its Long Beach, California assembly plant.