The Mercury News

UAW president will take leave of absence after raids

- By Laura M. Holson

Gary Jones, the president of the United Automobile Workers, which is under investigat­ion over allegation­s of financial wrongdoing, is taking a leave of absence, the union said in a statement Saturday.

The union said Jones sought the leave of absence after a vote by its executive board. The statement did not elaborate on the board’s vote, and Jones could not be reached Saturday for comment. Jones has not been charged with wrongdoing in the investigat­ion.

In August, agents from the FBI raided his home in Canton, Michigan, and executed search warrants at a UAW resort in Michigan and other locations, the agency said at the time.

In particular, investigat­ors have been looking into the resort, Black Lake, a rustic lakeside conference center with golf courses, tennis courts and log cabin-style architectu­re in Onaway, Michigan, about 250 miles north of Detroit.

The union is building a cabin on the property to be used by Dennis Williams, who was its president from 2014 to 2018. Union workers have been critical of the move, but a UAW spokesman told The Detroit Free Press in January that the cottage was owned by the UAW, not Williams.

The federal investigat­ion has uncovered the improper use of millions of dollars of funds and bribery of union officials by auto executives, leading to the indictment of several people. In some cases, money was spent on personal travel, Rolex watches and other highpriced items.

In the statement, Jones said the union was fighting for its members.

“I do not want anything to distract from the mission,” he said. “I want to do what’s best for the members of this great union.”

Jones will begin his leave today. The union’s vice president, Rory Gamble, will serve as interim president.

The news of his leave of absence comes after the union recently reached agreements with General Motors Co. and Ford Motor Co. following a strike that lasted more than a month. The UAW is one of the largest unions in the United States, with more than 400,000 active members.

Federal officials have been investigat­ing the union and its managers for some time. In July 2017, Alphons Iacobelli, the former head of labor relations at Fiat Chrysler Automobile­s, was indicted on conspiracy and other charges by a federal grand jury.

According to the indictment, Iacobelli used money from a union account to pay for a $350,000 Ferrari sports car, two gold Montblanc pens and a new kitchen and swimming pool at his personal residence. Federal investigat­ors said he also allowed $1.2 million that was meant to pay for a training center to be diverted to a UAW official and his wife.

He pleaded guilty in August 2018 to violating federal labor law and was sentenced to 51/2 years in prison, The Free Press reported.

He said at the time that he would cooperate with federal investigat­ors.

More recently, in April, Norwood Jewell, a former UAW vice president, pleaded guilty to breaking federal laws, The Free Press reported. He was accused of spending lavishly on $7,000 steakhouse dinners, cigar and wine parties valued at $30,000 and stays at golf resorts.

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