Posts tagged investment
EXCLUSIVE: Congress Asks Union About Blunder That Reportedly Sent About $80 Million Down The Toilet
September 16, 2025 // United Auto Workers (UAW) has not disclosed what happened to $340 million it used to cover strike costs in 2023 while promising to reinvest the funds, the House Education and Workforce Committee told the union in a letter scheduled to be sent Thursday. The committee is requesting documents and information on the alleged blunder, which angry UAW officials claimed cost an estimated $80 million in potential gains, according to a Reuters report cited in the letter. Failing to reinvest the funds may have violated UAW’s fiduciary duty under the Labor-Management Reporting and Disclosure Act (LMRDA), ushered in higher dues, led to lesser strike benefits for members and made them miss out on stock market surges that followed President Donald Trump’s reelection in November, according to the letter.
Exclusive-UAW investment blunder cost the union an estimated $80 million, documents show
June 24, 2025 // The board voted to liquidate about $340 million in stock investments in August 2023 to pay strike costs, according to a union document reviewed by Reuters. The wording of the vote stipulated that the money be reinvested according to union policy after the strike ended and the labor contracts were ratified, though it didn't specify how quickly. But almost none of its portfolio was invested in stocks during the year after the strike began in September 2023, according to the records reviewed by Reuters. The news agency was unable to establish why the stock investment wasn't made. The issue of why the union did not reinvest the funds for more than a year is now being investigated by the federal monitor which was appointed as part of a 2020 settlement between the UAW and the U.S. Department of Justice to resolve a union corruption scandal, according to a statement from a majority of UAW board members.