ABSTRACT

Chapter Seven examines the scandalous behavior in connection with the operation of the UAW-Chrysler NTC. Based on criminal complaint filings, it appears the top executives of FCA conspired to bribe high-ranking UAW officials for the purpose of effecting improvements in the labor relations climate. The FCA leadership’s motivation was to make the company more competitive in terms of labor costs and thus a more appealing target for a possible merger with GM, which had been a long-term goal of the company’s late CEO, Sergio Marchionne. As a result, several UAW officials received millions of dollars in illegal payments to support a lavish lifestyle, with funds housed in the NTC. Eventually, at least one of the FCA officials decided to partake in the largess, having already enlisted the aid of other corporate officers to facilitate illegal activities.