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Fiat Chrysler to plead guilty, pay $30 million to resolve US criminal labour probe

The Italian-American automaker, which is now part of Stellantis NV, said it reached an agreement with U.S. prosecutors to plead guilty to one count of conspiracy to violate the Labor Management Relations Act and pay a $30 million fine. Fiat Chrysler also agreed to three years of probation and oversight by an independent compliance monitor to ensure it follows federal labor laws.

January 28, 2021 / 08:10 AM IST

Fiat Chrysler said on Wednesday it will plead guilty to charges it conspired with company executives to make illegal, lavish gifts to United Auto Workers (UAW) leaders and undermined workers' confidence in collective bargaining.

The Italian-American automaker, which is now part of Stellantis NV, said it reached an agreement with U.S. prosecutors to plead guilty to one count of conspiracy to violate the Labor Management Relations Act and pay a $30 million fine. Fiat Chrysler also agreed to three years of probation and oversight by an independent compliance monitor to ensure it follows federal labor laws.

The Justice Department said Fiat Chrysler conspired to make more than $3.5 million in illegal payments to then-UAW officers from 2009 through 2016.

The documents cited payments made by Fiat Chrysler's then-lead labor negotiator, Alphons Iacobelli, to UAW officials through a joint UAW-Fiat Chrysler training center. Jacobelli, who has left the company, pleaded guilty and his prison sentence was reduced earlier this month to four years for his "significant cooperation" with the investigation.