Home Top Stories GM sues Fiat Chrysler alleging bribery scheme in union negotiations

GM sues Fiat Chrysler alleging bribery scheme in union negotiations

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Former CEO of Fiat Chrysler Automobiles, Sergio Marchionne.

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General Motors filed a federal racketeering lawsuit against Fiat Chrysler and its former executives on Wednesday, accusing the automaker of bribing United Auto Workers officials to receive more favorable terms in labor negotiations.

“This lawsuit is intended to hold FCA accountable for the harm its actions have caused our company and to ensure a level playing field going forward,” said Craig Glidden, GM’s general counsel said  in a statement.

GM says that Fiat Chrysler “corrupted” collective bargaining agreements between GM and UAW in 2009, 2011 and 2015 by paying millions in dollars in bribes.

“FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labor agreements over time,” the company said in a statement. 

Shares of GM slipped more than 2% following the news, while Fiat Chrysler shares dropped nearly 3% during midday trading.

UAW members approved a labor deal with GM in late October, ending the longest labor strike for the union against any Detroit automaker in decades.

This is breaking news. Check back later for updates.



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