UAW investment oversight leads to $80 million loss, sparking federal investigation

From Yahoo Finance: 2025-06-23 06:08:00

The UAW faces turmoil as an investment blunder costs the union $80 million in foregone gains. Funds were liquidated to pay striking workers in 2023 but not reinvested in accordance with the union’s policy for over a year. The federal monitor is investigating the issue.

The UAW represents nearly 400,000 members, with 150,000 workers at GM, Ford, and Stellantis. The investment policy calls for 30% in stocks, 53% in fixed income, and 17% in alternative investments. The board voted to liquidate $340 million in stock investments in 2023 to pay strike costs.

The financial setback adds to the UAW’s challenges post-strike gains, record contract wins, and successful unionization at a Volkswagen factory. However, momentum has stalled with a failed unionization vote at a Mercedes-Benz plant. Tensions over union investments emerged late last year, leading to questions about the return on the portfolio.

UAW President Fain and Secretary-Treasurer Mock did not comment on the failure to reinvest union dues. The federal monitor is investigating the issue, which has sparked broader tensions within the UAW leadership. The dispute over investment decisions adds to existing challenges faced by the union.



Read more at Yahoo Finance: Exclusive-UAW investment blunder cost the union an estimated $80 million, documents show