ABSTRACT
A variety of economic and political circumstances converged in the 1970s and 1980s to threaten the survival of the US auto manufacturers. An influx of foreign-produced motor vehicles sharply reduced the Detroit 3’s market share, forcing major plant closures and the loss of thousands of unionized auto jobs. This perfect storm impelled the UAW and the domestic manufacturers to collaborate in ways to increase productivity and reduce labor costs. A result of these collaborative efforts included the creation of jointly operating training centers at each of the Detroit 3. The companies funded these centers, which were jointly administered, through formula negotiated into collective bargaining agreements. These centers were also used to subsidize UAW staff assigned to training operations, with each of the centers paying millions of dollars in “chargebacks” to reimburse the union. In the case of the UAW-Chrysler National Training Center (NTC) and the UAW-GM Center for Human Resources (CHR), their funds became an opportunity for selected officials to abuse for personal gain.
