US: GM files racketeering suit against Fiat Chrysler

General Motors accused Fiat Chrysler Automobiles of bribing union negotiators to gain a competitive advantage, triggering an unusual legal dispute between crosstown rivals by filing a federal racketeering lawsuit.

Separately, the head of the United Auto Workers (UAW) union resigned Wednesday, November 20, after the UAW’s board publicly accused him of submitting false and misleading expense reports and concealing the misconduct. Gary Jones earlier this month took a leave of absence as UAW president amid a federal investigation into union corruption.

The GM lawsuit relates to a federal investigation into corruption between leaders at the UAW and labor-relations executives at Fiat Chrysler. In its suit filed in Michigan, GM accuses its rival of corrupting the collective bargaining process in 2011 and 2015, as well as implementation of a 2009 agreement, to solidify a labor cost advantage for Fiat Chrysler.

On Thursday, November 18, however, Fiat Chrysler brushed off the lawsuit from General Motors and stated it was confident of reaching a binding merger deal with Peugeot owner PSA Group by the end of this year to create the world’s fourth largest carmaker.

Full Content: Reuters

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