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UAW Faces Federal Probe Over $80 Million Investment Misstep

A monitor appointed under a 2020 DOJ settlement is investigating why strike funds went uninvested for more than a year.

United Auto Workers (UAW) President Shawn Fain speaks during a campaign event at the United Auto Workers (UAW) Local 900 in Wayne, Michigan, U.S., August 8, 2024. REUTERS/Elizabeth Frantz/File Photo
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Overview

  • The union sold roughly $340 million in stocks in August 2023 to fund its six-week strike against GM, Ford and Stellantis.
  • Following the strike’s end in October 2023, the proceeds remained largely in cash and low-yield assets through September 2024 instead of meeting the 30% equities policy.
  • A February analysis by UAW staff estimated that the delayed reinvestment cost the union about $80 million in potential portfolio gains.
  • The federal monitor overseeing UAW reforms has opened a formal inquiry into the post-strike handling of the investment funds.
  • Disputes over investment oversight have deepened a rift between President Shawn Fain and Secretary-Treasurer Margaret Mock.