Ashton was charged Wednesday in a criminal information filing, which indicates a guilty plea is expected. © 2020 CNBC LLC. I have no way of knowing whether Ashton has any interest in trying to obtain protection under the D&O insurance policy, but if he were to seek the insurance, the insurers undoubtedly would raise a number of coverage defenses. There is one further interesting coverage issue here. The fact that GM is seeking to recoup the compensation it paid Ashton for his services as a director also raises the possibility that the insurer might argue that coverage for the claims against Ashton is precluded by the standard policy exclusion precluding coverage for Loss “arising out of, based upon, or attributable to … remuneration, profit or other advantage to which the Insured was not legally entitled.” However, these days, these exclusions in most D&O insurance policies are written in such a way that the exclusion’s preclusive effect is not triggered unless there has been a final adjudication that the precluded conduct took place. Labor relations made a statement that it was a mistake and it would be on our check this week, and November union dues will be taken out....”, Asked what he thought the latest indictments say about the UAW and the GM contract, a former worker at the now-closed Lordstown Assembly Plant told the WSWS Autoworker Newsletter, “It tells us what we already know.
Joseph Ashton’s mother’s name is unknown at this time and his father’s name is under review. FCA, for its part, again pushed back against GM and noted U.S. District Judge Paul Borman's decision regarding the federal suit against FCA.
We will continue to aggressively defend ourselves and will take appropriate steps — including seeking sanctions — against GM's baseless attempts to tarnish FCA’s reputation, none of which will distract us from our fundamental mission of providing customers with outstanding and exciting cars, trucks and SUVs or from completing our landmark combination with Groupe PSA," according to a company statement sent by FCA spokesman Jeff Bennett. The index for this series can be Found Here. Despite his fiduciary duties, Ashton failed to disclose and in fact affirmatively concealed these schemes from detection while serving as a director on GM’s board. A message seeking comment was left for Ashton’s attorney who is based in New Jersey, Jerome Ballarotto. Ashton steered a nearly $4 million contract to the vendor, according to the indictment, for 58,000 UAW-branded watches. Federal prosecutors have charged retired UAW Vice President Joseph Ashton, a former GM board member, with fraud and money laundering conspiracies. Climate Change as a “Systemic Risk”: Markets, Regulation, and Disclosure. Ashton was thus important to the scheme to ensure that GM did not receive the same labor advantages as FCA in the form of structural concessions granted to FCA," according to GM's suit, which was reported on earlier by The Detroit News.
GM was not aware of this illegal activity until it was recently revealed by the government’s investigation, or that he allegedly continued to benefit from this conduct after the UAW Retiree Medical Benefits Trust (VEBA) appointed him to the GM Board, a position he resigned in December 2017.”, Acting UAW President Rory Gamble, who as a UAW vice president just led contract negotiations with Ford for the union, also condemned Ashton's actions, should allegations prove to be true: “Joe Ashton’s actions, as set forth in the government’s filings, are completely inexcusable and violate UAW’s long-standing standards of conduct put in place by former leaders like Walter Reuther. The news that Ashton has been charged, among the other UAW leaders connected to the corruption probe, feels like a double betrayal of both the union and the company, she said. “His actions deprived union members of the honest services they expect and deserve from those who are elected to make decisions in the union’s best interest. Both Grimes and Pietrzyk were executive board members at the UAW-GM Center for Human Resources (CHR), derisively referred to by workers as the “center for hidden relatives” for its reputation of providing cushy jobs for UAW officials’ family members.
Derick is a Senior Web Producer for ClickOnDetroit and has been with Local 4 News since April 2013. Follow him on Twitter: @_ericdlawrence.
This uncomfortable fit is undoubtedly a reflection of the fact that the D&O insurers have little interest in picking up the tab for claims that involve corporate in-fighting and that may be about more than just money. General Motors has sued its former board member, Joe Ashton, who the company previously labeled as a paid mole, in the latest front in the company's legal assault stemming from the federal corruption probe into the UAW and Detroit automakers. If Ashton is approved and Girsky is re-elected, the GM board will have 12 people, down from its current 14 members.
We look forward to presenting these cases in court," according to a GM statement provided by spokesman Jim Cain.
A Division of NBCUniversal. Because GM is suing Ashton for actions he took or failed to take a director of the company, Ashton theoretically at least might attempt to have GM’s D&O insurers pay for his defense and even any settlements or judgments against him. Follow him on Twitter: @_ericdlawrence.
The allegations outlined in the filing center on Ashton's position overseeing a jointly operated training center with GM known as the Center for Human Resources, which the company recently announced plans to dissolve as part of its new labor agreement with the union.
40-day UAW strike was 'worth it' for GM: Kelley Blue Book. Then there is also the issue of the fact that Ashton entered a guilty plea in the criminal proceedings against him relating to the UAW kickback scheme. His attorney, Jerry Ballarotto of New Jersey, did not immediately respond to a request for comment. We’re all let down and sick of the corruption.”. Ashton, who was the first UAW leader on the GM board, is the 13th person charged as part of the probe, including 10 officials affiliated with the union and three Fiat Chrysler executives. Their charges referred to an unnamed “Union Official 1,” previously identified as Ashton in the press, as leading the conspiracy. Feigning moral outrage over Ashton’s indictment, he stated, “Joe Ashton’s actions, as set forth in the government’s filings, are completely inexcusable and violate UAW’s long-standing standards of conduct put in place by former leaders like Walter Reuther. They demanded kickbacks on the $3.9 million contract to buy 58,000 watches for all UAW members employed by GM, officials said.
The UAW remains focused on negotiating and finalizing strong contracts for our members, especially during this round of auto negotiations.”. To register, go to wsws.org/autocall, International Committee of the Fourth International. An alleged scheme identified by federal prosecutors involved a nearly $4 million contract with the training facility for commemorative watches. "General Motors is pursuing claims over which the federal District Court for the Eastern District of Michigan declined to exercise jurisdiction as well as related claims — mainly involving breaches of fiduciary duties that individuals owed to GM while they were employees or directors of the company. A D&O insurance policy provides coverage only for claims based on alleged wrongful acts undertaken in their capacity as a director or officer of the company.
Ashton allegedly never disclosed his involvement in this scheme to GM.
Ashton is the 11th person to plead guilty in connection with the ongoing investigation into illegal payoffs to UAW officials by FCA executives and corruption within the union, according to authorities. GM sued Ashton, a former UAW vice president, in federal court in New Jersey this week because that's where he lives. Ashton is the highest-ranking UAW official to be charged thus far. The views expressed on this site are exclusively those of the author, and all of the content on this site has been created solely in the author’s individual capacity. Nervous over the implications of the indictment of yet another union official—one who served on GM’s board, no less—and its potential to provoke even greater opposition among workers, both General Motors and the UAW attempted to quickly distance themselves from Ashton. FCA says it is focused on its planned merger with Peugeot maker PSA Group.
Kevin M. LaCroix is an attorney and Executive Vice President, RT ProExec, a division of R-T Specialty, LLC. Former UAW Vice President Joe Ashton speaks during a GM announcement at a plant in Spring Hill, Tenn. in 2011. But theoretical or not, the situation does show how complicated the questions can become when it comes to the potential applicability of insurance to claims brought against a former director or officer by their former company.
Ashton’s indictment comes four days after UAW President Gary Jones announced he was taking a leave of absence—during which he will continue to receive his $260,243 salary—and in the midst of voting by 55,000 Ford autoworkers on a UAW-backed tentative agreement.
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