Wednesday 20 November 2019 6:12 pm

US car giant General Motors sues Fiat Chrysler over union 'bribes'

Two giants of the global automotive industry have come to blows this afternoon, with General Motors suing Fiat Chrysler of bribing US automotive workers to get better terms in strike negotiations.

The US firm has filed a racketeering lawsuit against Fiat and its former executives, “intended to hold FCA accountable for the harm its actions have caused our company and to ensure a level playing field going forward,” according to Craig Glidden, GM’s general counsel.

General Motors says Fiat “corrupted” collective bargaining agreements between GM and the United Auto Workers (UAW) union in 2009, 2011 and 2015 by paying millions of dollars in bribes.

“FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labor agreements over time,” the company said.

Shares of General Motors fell more than two per cent following the news, while Fiat shares dropped nearly three per cent in US trading.

UAW members finally called an end to the longest strike in decades last month, after approving a deal with General Motors.