General Motors has filed a lawsuit against Fiat Chrysler Automobiles claiming that admissions made by former FCA executives to federal investigators show that FCA undermined the integrity of the collective bargaining process. The lawsuit, which claims substantial damages were incurred, relies heavily on testimony allegedly made by (now former) FCA executives who’ve pled guilty during an ongoing federal corruption probe.
The U.S. Attorney’s Office in the Eastern District of Michigan has been investigating corruption and racketeering charges against Fiat Chrysler Automobile employees, most of them now former executives, for some time. GM now claims that those investigations have found that FCA manipulated and corrupted the collective (union) bargaining agreements made in 2009, 2011, and 2015. Those resulted in unfair labor costs and operational advantages for FCA, harming GM in the process.
General Motors promises to put all damages recovered from this lawsuit into investments in the U.S. aimed towards improving benefits for GM employees and job growth.
FCA responded to GM’s claims in a three-paragraph, generalized statement that says the claims are “nothing more than a meritless attempt to divert attention from [GM’s] own challenges.” FCA further states that “this astonishing ploy comes at a time when FCA is proving itself to be an ever more formidable competitor..”
The lawsuit and response are likely only the beginning. We will probably see this case drag through court over a long period of time, ultimately resolving in some kind of off-record settlement before being quietly forgotten. It would be interesting to see Ford also got involved, as they would logically have similar claims from similar evidence.
