Two former presidents of the United Automobile Workers are alleged to have spent more than $1 million in union funds on cigars, golf, and villa rentals in Palm Springs, California.
Gary Jones, 62, and Dennis Williams, 66, kept a running hospitality tab referred to as the “master account” since 2013 that paid for steak dinners and lavish retreats at hotels such as the Renaissance Palm Springs, according to a federal complaint.
Receipts show Jones spent $13,000 on specialty cigars while Williams stands accused of spending Fiat Chrysler funds that were intended for worker education.
At one meal, UAW officials charged $6,500 at LG’s Prime Steakhouse in La Quinta, California, which included $1,760 for four bottles of Louis Roederer Cristal champagne.
UAW is one of the largest unions in the country, with almost 400,000 members. In September, 45,000 UAW members went on strike against General Motors, demanding more flexible hours, higher pay, better healthcare, and increased job security.
[Opinion: The UAW strikes General Motors — now and 49 years ago]
At the same time workers were striking in the streets, federal authorities raided the homes of Jones and Williams in search of cash and documents. Officials also searched the UAW’s 1,000-acre resort in Onaway, Michigan. Jones and Williams have yet to be charged, though the investigations have led to the conviction of eight people.
“GM is outraged and deeply concerned by the conduct of union officials as uncovered by the government’s investigation and the expanding charges revealed today,” said General Motors in a September statement. “These serious allegations represent a stunning abuse of power and trust. There is no excuse for union officials to enrich themselves at the expense of the union membership they represent.”
In the fallout from the investigations, UAW appointed negotiator Rory Gamble as president. Gamble promised to “deliver a clean union on solid footing.”
