Dennis Williams becomes 2nd ex-UAW president charged in corruption probe

Dennis Williams preached "solidarity together forever" as he gave his farewell address in 2018 as UAW president, but on Thursday, Williams became the latest former union leader nabbed in a scandal that has tarnished the image of an organization long regarded as the gold standard for clean unions.

More distressing to rank-and-file members perhaps is that Williams is not the first ex-UAW president charged criminally in a years-long federal probe. That distinction goes to Williams' successor, Gary Jones, whose agreement to cooperate in the investigation put speculation about who would be next to fall squarely on Williams.  

Prosecutors charged Williams, 67, of Corona, California, with conspiracy to embezzle union funds. The charge, which carries a maximum five-year prison term and $250,000 fine if Williams is convicted, was filed as an information, meaning he is likely to plead guilty.

"While he was an officer of the UAW between 2013 and 2018, Dennis Williams accepted housing for himself in Palm Springs, California, housing for his friends in Palm Springs, California, golf clothing and other related merchandise, rounds of golf outside of the dates of UAW conferences, and certain meals, liquor, and cigars provided to him by co-conspirators Gary Jones" and others, the filing said, noting that these things were paid for with union funds.

Williams is accused of conspiring with at least six other senior UAW officials, according to a news release, which noted that hundreds of thousands of dollars in personal expenses, including lavish entertainment, were concealed in the cost of UAW conferences.

“The charges today are further steps forward in our relentless effort to ensure that the over 400,000 men and women of the UAW have honest and ethical leadership,” U.S. Attorney Matthew Schneider said in the news release. “The UAW’s members deserve leaders dedicated to serving the members and their families, not serving themselves.”

Prosecutors had listed Williams as an unnamed union official in federal court papers last year. The documents alleged he and other union officials embezzled $1.5 million in union funds. Prosecutors have painted the scandal as one of simple greed, with union leaders helping themselves to fancy dinners, jewelry and more. More than $32,000 was seized from Jones' home last year.

Williams could not be reached for comment. A message was sent to an attorney for Williams, but previous requests for comment have gone unanswered.

The UAW, in a news release, acknowledged the allegations against Williams but highlighted the reforms that have been announced since Rory Gamble was named president last year:

"Any violation of Mr. Williams' oath of office and his responsibility to oversee our members and their sacred dues money, should rightfully face criminal penalty. Today’s development is a sad day for UAW members. But it is also a humbling day of truth and justice demonstrating that no one is above the law, regardless of their position. Under the leadership of current UAW President Rory L. Gamble, the UAW and our International Executive Board continue to focus on comprehensively reviewing and strengthening our union’s financial and ethical policies and controls, and the UAW will continue to take the strong actions necessary to restore the full faith and trust of our more than 400,000 active members and nearly 500,000 retirees across the country."

Williams took the helm of the UAW in 2014 after serving as secretary-treasurer. The union, on its website, said Williams was a U.S. Marine Corp veteran who "joined UAW Local 806 in 1977 at J.I. Case where he was a salvage welder." Despite a union experience that "carried him through the many diverse sectors of the UAW," many members might focus more on the infamous hug at the start of contract bargaining in 2015 between Williams and Sergio Marchionne, then CEO of Fiat Chrysler Automobiles who has since died. That embrace sparked concerns that the relationship might be a bit too cozy.

This month, the union's International Executive Board voted to stop paying for Williams' attorney. The UAW listed $320,912 in legal fees for Williams in 2019, according to a federal filing. The union had earlier decided to have Williams repay more than $56,000 "spent for housing and related travel expenses while he was in office that were determined to be personal in nature."

Last year, as part of a series of reforms, the UAW also announced it would sell a lavish and controversial cottage designated for Williams at the UAW Walter and May Reuther Family Education Center in northern Michigan.

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The UAW is not the only organization to be tainted by the scandal, which also put a spotlight on Fiat Chrysler. Among the ex-FCA officials convicted is onetime lead labor negotiator Alphons Iacobelli, who is serving time in a federal prison in West Virginia. The company, which has not been charged, has acknowledged negotiating with the Justice Department on a possible resolution to the case. And a former board member of General Motors, ex-UAW Vice President Joe Ashton, was convicted in a scheme involving bribes and kickbacks.

For its part, GM has sued FCA, claiming, among other things, that Ashton was a paid mole. A federal judge in Detroit dismissed the case, but GM filed an appeal. FCA called claims that it sought to corrupt bargaining to harm GM meritless and GM's tactics despicable. The UAW is not a defendant in the suit.

Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence.