DETROIT _ United Auto Workers President Gary Jones resigned Wednesday amid a federal corruption investigation targeting him for embezzling more than $1.5 million in union funds, capping a steep fall for one of the country's most powerful labor leaders.
Jones' resignation was announced less than an hour after the union's governing International Executive Board moved to remove him and UAW Region 5 Director Vance Pearson from their elected positions and expel them from the union.
"After much discussion with his family and friends, Gary has elected to resign his position as UAW president and retire effective immediately," Jones' lawyer, Bruce Maffeo, told The News on Wednesday.
"His decision to do so was reached before learning of the internal charges filed earlier today by the UAW and was based on his belief that his continuing to serve will only distract the union from its core mission to improve the lives of its members and their families."
The move came two months after The Detroit News first linked Jones to what federal prosecutors labeled a conspiracy to embezzle more than $1 million in union dues that were spent on personal luxuries in California and Missouri _ and three months after federal agents raided his home. The News also first identified Jones last month as the unnamed UAW officer accused by federal investigators of helping embezzle $700,000 in member dues.
The tenure of Jones, 62, lasted 17 months and coincided with an escalating corruption investigation that has produced 10 convictions and charges against 13 people, leaving one of the nation's largest unions exposed to federal takeover. The investigation and a prosecution that has lasted more than two years has revealed a culture of corruption within the top echelon of the UAW, including labor leaders receiving bribes and kickbacks designed to corrupt the collective bargaining process.
The UAW executive board's filing of charges under Article 30 of the union's constitution came on the same day The News reported that six UAW locals were calling for charges under that provision _ the first step toward removing the president.
The charges, signed by the entire union's International Executive Board, assert that Jones and Pearson directed the submission of false, misleading and inaccurate expense records to the UAW Accounting Department and further concealed the true information concerning those expenses, in violation of the UAW's Ethical Practices Code and applicable federal labor laws.
"This is a somber day, but our UAW Constitution has provided the necessary tools to deal with these charges," UAW Acting President Rory Gamble said in a statement. "We are committed at the UAW to take all necessary steps including continuing to implement ethics reforms and greater financial controls to prevent these type of charges from ever happening again."
Pearson is on paid leave.
The members of the six UAW local from Massachusetts to Tennessee are pursuing actions outlined in three UAW constitution articles. They seek an investigation into officials identified in a four-year federal probe into UAW corruption; removal of Jones and Pearson; and a special convention to amend the constitution for the direct election of union leaders and other reforms.
