Feds could take over UAW after former union president Gary Jones pleads guilty

The United Auto Workers still needs to reform, and a federal takeover remains an option, the U.S. prosecutor leading the investigation of corruption within the union told Reuters on Wednesday after the UAW’s former president pleaded guilty to embezzlement.

“The union needs to change, quite simply,” Matthew Schneider, the U.S. attorney for the Eastern District of Michigan, said in an interview, adding that a possible takeover of the UAW “absolutely” remained an option.

“Now that we’re getting these pleas out of the way, there’s a more urgent need to reform the union and fix it,” Schneider said.

Former UAW president Gary Jones pleaded guilty to charges he embezzled more than $1 million of union funds. Schneider said he wants to meet as soon as possible with UAW President Rory Gamble as the investigation moves into a “new stage.”

Gamble on Wednesday said the actions of Jones and others involved “were selfish, immoral and against everything we stand for as a union.”

UAW spokesman Brian Rothenberg said Gamble looks forward to meeting with Schneider.

“The UAW has made significant changes since Mr. Jones resigned and continues to look at ways to reform,” Rothenberg said.

Jones, of Canton, Michigan, entered the plea during a videoconference hearing held by the U.S. District Court in Detroit. Jones had entered a not guilty plea last month, but he had previously been charged in a criminal information, suggesting he had reached a deal with prosecutors.

“I apologize to my UAW family for the betrayal of their trust and pray they will forgive me,” Jones said during the hearing.

Judge Paul Borman accepted the plea and set a sentencing date of Oct. 6. Jones, who remains free on bail, agreed to cooperate with the government in the prosecution of others, which could lessen his sentence.

Jones, a certified public accountant, was charged with conspiracy to embezzle funds from the UAW from 2010 through September 2019, and with conspiracy to defraud the United States by failing to pay taxes on the money prosecutors charge he stole. He resigned from the union last November.

Jones, 63, faces a maximum of five years in prison and a fine of up to $250,000 for each count. The sides agreed to a sentencing guideline range of 46 to 57 months.