DETROIT — Fiat Chrysler U.S. on Monday pleaded guilty to a single count of conspiracy to violate the Labor Management Relations Act as part of a criminal probe tied to the ongoing UAW corruption scandal.
As part of its plea agreement, the automaker, now part of Stellantis, will pay a $30 million fine and accept an independent compliance monitor for three years.
Speaking in front of U.S. District Judge Paul Borman, representatives for the automaker admitted that between 2009 and 2016, FCA made more than $3.5 million in illegal payments to UAW officials for lavish parties, home mortgage payments, fancy meals and expensive golf outings. Much of the money was funneled through the National Training Center operated jointly with the union, which both sides have agreed to shut down.
“Through its participation in this conspiracy, FCA violated federal labor law and undermined the collective bargaining process and the faith of the UAW’s membership in their leaders,” Acting U.S. Attorney Saima Mohsin said in a statement. “By seeking a $30 million fine and three years of oversight by a court-appointed monitor, we are holding FCA accountable and sending a message to other companies that these types of crimes will not be tolerated.”
The guilty plea was expected after the automaker indicated it would do so in January. Sentencing is scheduled for June 21.
Stellantis, in a statement, confirmed FCA pleaded guilty to the charge but offered no further comment.
The UAW scandal has resulted in charges against 15 individuals, including the past two UAW presidents, Gary Jones and Dennis Williams. All 15 have pleaded guilty.
Jones and Williams await sentencing later this year.
The scandal also led to rival automaker General Motors filing a lawsuit against Fiat Chrysler last year, accusing the Italian American company’s executives of bribing UAW officials to secure labor agreements that put GM at a disadvantage.
A federal judge in Detroit in July dismissed GM’s lawsuit that Fiat Chrysler had called “meritless.” GM has asked a federal appeals court to reinstate the lawsuit.
Reuters contributed to this report.