UAW insiders are talking to the feds as talks with GM drag on

With the United Auto Workers’ strike against General Motors now in its 19th day without an agreement, The Detroit News reports that two former top officials at the union are helping federal prosecutors build a criminal embezzlement case against UAW President Gary Jones.

The news comes after UAW leadership rejected GM’s latest proposals on Tuesday and as negotiators endure “emotionally and intellectually grueling” talks that start early in the morning and go late into the night, the Detroit Free Press reports.

The News cites federal court records and unnamed sources familiar with the ongoing corruption investigation into the alleged misuse of more than $1 million in UAW funds on personal luxuries, much of it spent at a Palm Springs, California golf resort where the union held annual conferences from 2014 to 2016. It says investigators are meeting with former UAW deputy Danny Trull and retired UAW Secretary/Treasurer Gary Casteel.

Trull was Jones’ deputy and oversaw 17 states from a regional office in Missouri before retiring in 2015. Federal authorities have accused him of using member dues to pay for golf tee times, meals and shopping, and of trying to conceal the expenses. He also served on the board of the 5 Game Changers Charity Fund, Jones’ nonprofit that is also under investigation.

Casteel, who authorities refer to as a cooperating witness, told investigators he didn’t know that union money was being spent on personal luxuries in Palm Springs, allegedly including more than 100 rounds of golf, more than $100,000 worth of golf equipment and $185 bottles of of Crown Royal whiskey. He told investigators that all UAW expenses had to be approved and deemed to benefit the union’s membership and said the Coronado Resort expenditures “were outside what (he) would have approved,” according to the affidavit.

Neither Trull nor Casteel have been charged, and Jones so far has only been implicated, not charged, as being complicit. They join a growing list of former UAW officials who are cooperating with the wide-ranging investigation, which has so far resulted in several federal raids, criminal charges against 11 people linked to the union and FCA and nine convictions.

The ongoing investigation casts a cloud over the labor negotiations and prompts questions about whether Jones can sell a deal to members, who must vote to ratify any deal. Those negotiation are taking place at rented offices near GM’s headquarters in the Renaissance Center, the Freep reports. There’s a big room with a long table that can seat dozens. What’s different this year is that Terry Dittes, the UAW’s lead negotiator, has reportedly invited all elected bargainers from UAW GM locals in the room, adding up to at least two dozen more people on the union side alone. GM, meanwhile, prefers issues to be hammered out in smaller groups or committees.

Read the full Detroit News story here.

The Detroit Free Press story is here.