Michigan US Rep. Walberg calls on UAW for answers over reinvestment gaffe
Published in Business News
WASHINGTON — Michigan U.S. Rep. Tim Walberg is calling for answers from the United Auto Workers over its failure to reinvest funds that were liquidated during the union's high-profile 2023 strike.
Walberg, R-Michigan, sent a letter Thursday to UAW President Shawn Fain in the wake of a Reuters report suggesting that the union missed out on an estimated $80 million by failing to reinvest some $340 million in strike funds for more than a year.
"The consequences of this alleged mismanagement are significant," Walberg and co-signer U.S. Rep. Rick Allen, R-Georgia, wrote. "As a result of this failure, UAW members could face higher union dues or reduced strike benefit payouts as the UAW attempts to recoup the gains it forfeited."
The lawmakers continued: "Further, the alleged lapse potentially would have denied UAW members the full benefit of the historic market rally after the Dow Jones Industrial Average, the S&P 500, and Nasdaq each notched record highs in the months following President Trump’s election."
Fain has increasingly come under fire for his management of UAW funds during his tenure as president. The letter brings renewed scrutiny to a financial scandal that allegedly unfolded following the high point of his tenure as the UAW's leader: the successful negotiation of collective bargaining agreements with Ford Motor Co., General Motors Co. and Stellantis NV.
Since then, Fain has also been investigated by a federally appointed union monitor for allegedly directing improper benefits to his fiancée and sister and retaliating against other UAW leaders by stripping them of duties after feuds. The union boss and other members of the UAW's International Executive Board will be up for reelection in 2026.
The UAW did not immediately respond to a request for comment on Walberg's letter.
The U.S. House Committee on Education and Workforce, which Walberg leads, gave a deadline of Sept. 25 for the UAW to respond.
The ninth-term lawmaker wrote that he "seeks to understand the accuracy" of the reinvestment failure allegations so he and other committee members can evaluate whether federal laws on union financial transparency need to be strengthened.
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