UAW Faces Federal Probe Over $80M Post-Strike Investment Loss
UAW Faces Federal Probe Over $80M Post-Strike Investment Loss

UAW Faces Federal Probe Over $80M Post-Strike Investment Loss

News summary

The United Auto Workers (UAW) union is under federal investigation after an alleged investment misstep cost it an estimated $80 million in potential market gains. In August 2023, the union liquidated approximately $340 million in stock assets to pay workers during a strike but failed to reinvest the funds promptly following the strike's end, contrary to its investment policy. This reinvestment delay lasted over a year, with only about 5% of the portfolio returned to equities by September 2024, causing the union to miss out on a significant stock market rally. The union's investment policy prescribes a portfolio balance of 30% equities, 53% fixed income, and 17% alternative assets, but funds remained largely in cash, fixed income, and alternative investments during the period. The issue was raised internally after portfolio returns lagged behind typical bank account yields, prompting scrutiny from the federal monitor appointed under a 2020 Department of Justice settlement related to prior union corruption. While union leaders, including President Shawn Fain and Secretary-Treasurer Margaret Mock, have not publicly commented, the board confirmed an investigation into compliance failures concerning these investments.

Story Coverage
Bias Distribution
33% Center
Information Sources
daae85f0-2883-42fc-b085-888140adf30da3544a73-dab3-486d-ae75-bd4d15f01f5578876203-7edc-4c1e-8422-d6a486707f9e
Left 33%
Center 33%
Right 33%
Coverage Details
Total News Sources
3
Left
1
Center
1
Right
1
Unrated
0
Last Updated
8 days ago
Bias Distribution
33% Center
Related News
Daily Index

Negative

24Serious

Neutral

Optimistic

Positive

Ask VT AI
Story Coverage
Subscribe

Stay in the know

Get the latest news, exclusive insights, and curated content delivered straight to your inbox.

Present

Gift Subscriptions

The perfect gift for understanding
news from all angles.

Related News
Recommended News