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The investigation examines allegations that Fain sought benefits for his fiancée and her sister and retaliated against a vice president. It follows a monitor report last month and precedes the union's fall election.
The U.S. Justice Department launched a grand jury investigation into allegations that United Auto Workers President Shawn Fain pressured another high-ranking official to secure benefits for his fiancée and her sister, Fortune reported. A federal grand jury subpoenaed the union’s court-appointed monitor as part of the probe.
Internal emails sent June 18 to Fain, UAW Vice President Rich Boyer and members of the law firm representing the union stated that Jenner & Block withheld certain details of its findings out of deference to the grand jury investigation. The same email said the monitor intends to comply with the subpoena while redacting attorney-client communications.
Fain stated the allegations are false and accused Boyer of trying to influence the upcoming UAW election.
Steven Fagell, an attorney with Covington & Burling representing the union, said the UAW broadly is not the subject of a grand jury investigation. The new probe centers on claims that Fain sought a financial bonus for his fiancée and pushed for a worker’s compensation claim for her sister.
He allegedly retaliated against Boyer for refusing to approve the benefits by stripping him of duties as chief negotiator with Stellantis NV.
The allegations became public last month in a report by the court-appointed monitor. Neil Barofsky stated in the monitor report that it had substantiated the claim that Fain acted improperly to obtain financial benefits for his fiancée and that Boyer’s failure to approve the bonus may have contributed to the retaliatory action.
Barofsky’s office previously stated that Fain should not have punished UAW Treasurer-Secretary Margaret Mock and called the May 2024 moves against both officials part of a pattern of retaliation.
Fain and Boyer are set to face off in the UAW election this fall. Fain won a close runoff election in 2023, the first direct vote by union members in the UAW’s 90-year history, and is seeking reelection with his slate. The union represents more than 400,000 workers.
The UAW resolved a long-running corruption probe in 2020 by agreeing to the appointment of the monitor. That earlier investigation uncovered embezzlement of union funds and other misuse of cash that sent two past UAW presidents and other leaders to prison. , General Motors Co.
And Stellantis that secured significant wage gains. Fain stated in an open letter last month that the monitor had issued a false report that was politically motivated and stemmed from a February 2024 dispute. Barofsky had criticized the union’s resolution calling for a ceasefire in Gaza during a meeting with the board that month.
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