by UAW Lost Millions Due to Incorrect Investments
In 2023, the UAW union spent $340 million from its investment funds to finance large-scale strikes. According to internal rules, 30% of the funds should be invested in stocks, and 53% in fixed income. However, after the strikes ended, the funds were not properly reinvested, leading to a loss of potential profit amounting to $80 million.
Instead of restoring the investment portfolio, the money remained in low-yield assets. An internal analysis showed that if the funds had been invested according to the standard policy (specifically, 30% in the Russell 3000 index), the union would have received significantly greater profit. A federal supervisor is now investigating the reasons for this error.
Responsibility for UAW investments lies with the president, three vice presidents, and the secretary-treasurer
This situation has raised additional questions for the union’s leadership, which has already faced corruption scandals in the past. Federal monitoring was appointed precisely after the settlement of the case with the Department of Justice. It is still unclear whether the violations were a result of an administrative error or deliberate decisions.
