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.