Corruption Inquiry Spreads to U.A.W. Lakeside Resort

Nov 25, 2019 · 50 comments
Shane (Marin County, CA)
This is incredibly sad and a terrible betrayal of the working men and women of the UAW.
Mary M (Raleigh)
My mother always hated unions, and people like Jones is why. He's a well-dressed grifter. If union bosses focused on helping working families without first helping themselves, unions dues would be affordable, and unions might not be in so much trouble.
Justice Holmes (Charleston SC)
Hm, union president resigns (as he should) for using union funds for personal gain but President of United States does even worse and Republicans see him as the Second coming of Christ. Interesting commentary on where we are as a nation,
Cindy Lenhart (Lady Lake, Florida)
Love our family memories from Black Lake. Beautiful place for learning and reflecting. Walter and May would be proud to know their dream goes on. My daughter was inspired by her experience at “Union Camp” and is an organizer today! Not all about corruption and extravagance. Proud to be a Union Skilled Tradesman/retiree. God bless the UAW for my retirement with dignity.
DisplayName (Omaha NE)
Reminds me of an IBM executive retreat facility in Palisades that is now a hotel and conference center open to the public. It contains tons of IBM history in the form of drawings and models. The architecture is super cool and it clearly was built with no expense spared. These days the decor does feel pretty dated, but I appreciate the obvious quality of even the little things. There is a serene creek and rolling green lawns, lots of glass, and of course classrooms, a lecture hall, and lots of gathering spaces. Super cool.
Bif (3rd cornfield on the right, IL)
You can't drive a non-union vehicle there because it would sully the facility. Unlike the graft of generations of UAW leaders.
Chris Gray (Chicago)
C'mon, man, you drove a Volkswagen to the shrine of Walter Reuther? I bet you had no idea that's unacceptable until you got there.
jackzfun (Detroit, MI)
@Chris Gray I know right? This is always such a surprise for people. I always remind newcomers here on business with the autos to please rent the appropriate car!!!!
Hulagirrrl (San Diego CA)
@Chris Gray In defense of VW, the German VW workers tried to get the union into their US plant but a republican governor stopped this. In Germany a work representative also sits on the board and takes part in worker related decision making. This story is very sad, I find the US unions in the US are out of time, they are not flexible and adapting/ modernizing the 21st century workplace. For example: you have a flex worker who comes in once a month but has to pay the same union dues as the other workers with full schedule, that's really unfair. I heard union member telling me that's why they quit a job. Yet, overall I think America would enjoy a better quality of life if we had more organized labor, but these unions are not ready to change. This story feeds into the GOP dogma perfectly, too bad for the workers.
Franpipeman (Wernersville Pa)
Corruption in America From the president of the Us to the president of the Auto union to Bernie Madddow, financial investor, the new american value ,cheat lie as long as I am successful Shame on all.
stevevelo (Milwaukee, WI)
Corruption in unions?? Impossible! All union works are good looking, noble, hardworking laborers, with sledgehammers and pliers in their hands, gazing off into the far distance, while a ghostly image of Lenin stares benevolently at them from the clouds above. Just like socialist posters from the 30’s.
alyosha (wv)
Leaders are necessary evil. This is the evil part.
Paul (CA)
'Let's make 1984 fiction again' Anon
frankly 32 (by the sea)
The Reuther brothers were legend for facing strike breaking goons...while their successors have morphed into the the pigs that took over the farmers house in Animal Farm.
Sean Daly Ferris (Pittsburgh)
The unions comes back with a contract and blames the government the Judges the insurance company why you re giving back or falling behind. But they sleep at the best hotel eat at the best restaurants. It is no different that the Congress its a club house for the lazy
Kevinlarson (Ottawa Canada)
If only the Justice Department was as interested in investigating the plethora of corrupt Republicans and their extreme right friends as they are in attacking working men and women’s organizations.
George S (New York, NY)
While some of these allegations still need to be resolved in court, the never quite dormant stink of corruption and thievery involving the dues of hard working members again rears its ugly head. No, despite the oft heard contention read in these comment sections of the NYT, the decline in union membership over the years has not been because of Reagan or some cabal of star chamber Republicans, but because of this (and much worse) sort of corruption and betrayal of the union members. Hoffa et al. still hover over some of these higher ups. Many workers are disgusted by decades of this, and see little personal benefit in paying money from their paychecks to support people who misuse the funds, live better without the hard work, and having that money lavishly doled out in the political arena for issues and candidates they may not support. You can't blame them.
David (NY)
@George S The decline of Unions came about as jobs were shifted to states and countries without Union representation.
ebmem (Memphis, TN)
@David States that have right to work laws have better unions than states where you have to pay union dues in order to be employed. When unions have to offer services to their members commensurate with the dues paid, they are more responsive to the needs of the workers than they are to the agenda of the leadership: advancing their personal agenda and enriching themselves.
Niche (Vancouver)
Unions are a good thing (weekends, 8 hr days/40 hr weeks, sick days, vacation days, benefits, etc. are all thanks to unions) but anytime there's money and power, you know it will be corrupted. It doesn't matter if its a corporation, a non-profit, a charity, a union...the worst, greedy people often end up at the top.
teoc2 (Oregon)
This is the mother of all corruption. GM CEO Mary Barra's compensation was $21.87 million in 2018, 281 times median income of a GM worker
Rockaway Pete (Queens)
“Corruption?” Maybe yes, maybe no, it is hard to tell nowadays. With Trump at the helm, going after anyone who does not kowtow, is it actual criminal activity being investigated, or is it a set-up of selective prosecution/persecution?
Randy L. (Brussels, Belgium)
Everyone knows the unions are corrupt. All of them.
Sean G (Huntington Station NY)
Cabins and lodges on the Black Lake for the union elite. Dachas for on the Black Sea for the party elite. "All animals are equal, but some animals are more equal than others." The UAW needs a serious cleansing. No wonder many workers want nothing to do with it.
A part of the whole (USA)
Power corrupts. ...I belonged to a union once...and paid over 2% of my wages in annual dues. To think those dues may have paid for expensive cigars, pricey champagne and cherry kitchen cabinets for union officials is an insult ... it's disgusting. Not surprising that the culture of 'winning' takes such an extraordinary ugly toll on our psyches and collective well-being.
TED338 (Sarasota)
the UAW getting a mortgage from the Teamsters, a marriage made in heaven. I'm sure the membership dues were safe in that transaction.
Jay (Boston)
@TED338 I was a teamster for a little while. The dues were high and they never did anything to protect me. We need unions, but they need to be watched VERY closely, just like corporations big and small.
jerry lee (rochester ny)
Reality Check no perfect world . Wether its union or a branch of government always risk of coruption. All in how we preceive what we see.Union is Made In U.S.A is what made the united states great place for alot talented people to come an work in usa. These storys go untold dosent serve agenda ,people like dirty laundrey. Fact is alot people in law enforcement depend on crime for a job. Why crime is excepted way life in usa at moment when very difficult to find job pays living wage.Union always suggested we can build our own . We have know how an talent we just need to ensure that talent is passed down to next generation way it was given to us.Means if not better then we received. Quality work life a program embraced by union to teach workers to work as group once best gm could hope for. Team concept made huge improvements in quality.Alot can be said for UAW wish them the best in life.
Bruce1253 (San Diego)
Over the course of a 45 year career in heavy industry, non-profits and retail, I worked with 5 different unions. I haven't found an honest one yet. I did however find why union membership is below 10% nationwide everywhere except government. Union membership is a tax on wages and not a small one. Internally, unions treat their people worse than any company. If you doubt that, go to the hall and ask to see the books.
magicisnotreal (earth)
@Bruce1253 Dues are minimal in most unions hence your lie using the word tax to make it seem onerous and appeal to the fake hatred of government the republican scabs have created for the last 50 years or so. Corruption in Unions is the same as corruption in government. It is down to the individuals doing the jobs and how well oversight is conducted. You are going to have to provide examples and proofs of your assertions which I am sure are wildly misrepresenting the facts.
Onaway123 (Michigan)
Very nice article. I have spent my life on Black Lake watching the development of the UAW facility. As a child I remember the intent of Walter Reuther as the education center was being built. It's a beautiful place. I have also watched the building of the luxury cabin which broke my heart. Walter Reuther loved and protected the woods around the center. Over the last couple years I have watched the woods get cut down, plus vast cutting of cedar on the property. I wonder if this wood and income from the mass cutting was used to benefit the corruption and the building of the luxury cabin. Shame on the corrupt individuals who neglected the vision of Walter Reuther.
Thomas Murray (NYC)
A retired attorney, I am not 'personally educated' in Union matters -- but common sense leaves me with no illusion that Union 'procedures' and officials are free of corruption. But I'd much rather accept some Union corruption and a return of Union membership to levels not seen since the (I'm 'sure') far more corrupt "Conservatives" instituted their war on Unions and Union political influence -- and I'd love to see a war 'on' the corruption of those "Conservative" politicians and of the "Management" and "Wall Street" barons that support them -- and assures that the paychecks and voting rights of 'working stiffs' are 'regulated' such as to line the pockets of those politicians and their donors at the expense of 'working' men and women.
magicisnotreal (earth)
@Thomas Murray It is all always down to the quality of the individuals in a job, and the quality of the oversight of that individual while in that position. regardless of what industry or occupation you speak to. Corruption is generally worse where there is less oversight.
Greg Jones (Philadelphia)
@Thomas Murray talk is cheap. I bet you never discounted your hourly rate or paid your assistants what they deserved. Unions exist to make the leader and their cronies rich. Maybe there should be a union for legal assistants.
ChesBay (Maryland)
Bad news, and this is why so many people are suspicious of unions, regardless of the great good they have done. But this is another example of inattention, by the members. You can't just vote and walk away, as voters do in political elections, expecting everything will work out. YOU MUST SUPERVISE your representatives. It's your union, and your lives. The working class can reform our government, but not if you can't run your own affairs. This guy is the donald tRump of your union. Pay attention!!
ChesBay (Maryland)
@ChesBay -- Furthermore, this plays right into the hands, and arguments, of the extreme right, who want you workers to have NO rights. To work for nothing and thank them for the privilege. To have no benefits, no health care, no recourse. Can't you members see that? The workers should have shares of every company they work for, important seats on the boards, so their needs and wishes will be considered. If you let in the crooks, you are selling yourselves out. Time is running out.
Jay (Boston)
@ChesBay very well put.
Joyce Benkarski (North Port Florida)
My husband was a union representative in the late '70s or early '80s and we were invited to go there. I found it to be a lovely place, although as the author described, a little musty and dark. Wifi was not widely used if it was even invented at that time. We were one of the lucky ones to be chosen. I think as the union is starting to fade due to Regan and the SCOTUS the union needs everything it can get its hands on to encourage and treat its members royally. I also agree that the cheats of the union should be punished. As a widow with a UAW bereavement pension, I still elected to pay Union Dues as I believe that is the only way that working people can get their "fair share" is by organizing.
Judy (New York)
By all means prosecute all corruption in the UAW. An education and retreat center, however, where the union educates its members and builds solidarity and leadership is not corrupt because it is beautiful and high-end. A place of tranquility and beauty can feed the soul and be the perfect setting for gaining insight and commitment. I think an economic system where GM CEO Mary Barra's compensation was $21.87 million in 2018, 281 times median GM worker is corrupt.
Alan J (Ohio)
Maybe not corrupt but certainly not reasonable.
Billy Bobby (NY)
Isn’t this an issue between the union and its members? If the members are okay with the union wasting their hard-earned union dues, so be it. Too bad the prices are passed on to consumers, who then refuse to pay such higher prices and end up buying cars made in Mexico. Sounds like a vicious cycle. It’s called a market. The only unions that are going to survive are the unions that don’t involve a capitalist market: public sector unions such as cops, fireman, teachers, etc. as the taxpayer pays for those services and our politicians will spend our money for those votes all day long. Of course, cops and fireman all vote GOP which is hilarious as the GOP hates unions, but cops and fireman don’t want the rest of us to have their socialist union benefits: pension, healthcare for life, early retirement, disability, etc., so they vote against social programs and the politicians that support them. You can’t make this stuff up.
Kurt Pickard (Murfreesboro, TN)
@Billy Bobby Nope Billy this isn't an issue between the unions and its members. There are untold thousands of suppliers to the auto makers. When cars don't sell because they're considered too expensive, compared to comparable models from competitors, it affects all union and non-union suppliers. The media only mentioned the 43 thousand UAW on the picket line but nary a word about all the people out of work waiting for the strike to be over.
Billy Bobby (NY)
@Kurt Pickard Understood but the union is basically a supplier of labor, a mismanaged supplier. Ultimately, you are correct, because the government, with the NLRB and associated regulations, got into the union business and now has to deal with it.
teoc2 (Oregon)
@Billy Bobby again you are just plain wrong... the Union doesn't hire and fire the employer does. It is not a "Union Contract" it is a Union/Management Contract.
Artis (Wodehouse)
Alas, the old adage, absolute power corrupts absolutely holds once again. Doubly unfortunate, when today workers need the protection that organization provides.
Elizabeth (Hailey, ID)
@Artis Agreed. And perhaps the "protection" you refer to --fighting for wages/benefits/ conditions -- is not actually "protection" at all? Perhaps unions everywhere need to fight for workers to work as a Deming-style top-of-the-pyramid quality assurance force, for REAL long-term job protection? Not sure when unions will expand into this role, because right now, their "protection" is short-term at best. See: Detroit, Flint, etc.
Midwest Josh (Four Days From Saginaw)
Corruption in a union? No way. I dated a girl in college who's UAW Dad didn't let me park my (made in Ohio) Honda Civic in their driveway. The relationship didn't last too long after that.
keystone (PA)
@Midwest Josh What once took Paul Simon four days will now take a life time. The UAW now needs body guards because they've lost their "long-lost pals", by deceiving and insulting their own workers.
Bob (kansas city)
@Midwest Josh -----I would venture to think Daddy's house was full of foreign and non union made items.
J (Swf)
@Midwest Josh And how is that corrupt?