A former leading United Auto Workers (UAW) official in charge of the union’s relations with Fiat Chrysler Automobiles NV (FCA) pleaded guilty on Tuesday in a U.S. federal court in Detroit for misusing the automaker’s funds for lavish spending on UAW officials.
As part of a plea agreement, Norwood Jewell, who led the UAW’s FCA department from 2014 until his retirement in January last year, pleaded guilty to a single charge of conspiring to breach the Labor Relations Management Act, which carries a maximum prison sentence of five years and a fine no less than $250,000.
Jewell is the highest-ranking former UAW official charged until now in a wide-ranging investigation concerning illegal payoffs to UAW officials by FCA. To this day, seven people associated to the union and the automaker have been sentenced in the government’s corruption probe.
Jewell’s court appearance comes at a sensitive time for the union, which deals with contract discussions later this year with FCA, General Motors and Ford Motor.
Prosecutors state FCA officials conspired to divert to UAW officials over $4.5 million in training center funds meant to pay for training for union members.
Both the UAW and FCA have repeatedly stated that only a few individuals were associated and that this did not impact contract talks among the two in 2015.
Jewell told the court he failed to appropriate apportion funds between his two roles at the UAW and the National Training Center funded by the Fiat Chrysler to train workers.
“I own up to what I did and I am taking responsibility for my actions,” Jewell stated.
Prosecutors have suggested a sentence of 12 months to 18 months.
According to court documents, Jewell utilized the FCA’s National Training Center credit card and approved the use of the credit cards by other UAW officials to make over $40,000 worth of charges for items including travel and meals.
Defense attorney Michael Manley informed reporters the corrupt practices preceded Jewell’s appointment in 2014, that he had worked to stop those practices and “that he did not take anything for personal gain.”
“My hope is that he will not go to jail,” Manley stated.
