Three appellate judges the federal have delayed a meeting ordered by the court between the CEO of General Motors, and Fiat Chrysler to try to resolve a trial for the corruption of trade union leaders. The judge of the district court of the United States, Paul Borman, ordered last week, Mary Barra, CEO of GM, and Mike Manley, CEO of FCA, to hold the meeting before July 1. But GM has asked Friday a federal appeals court in Cincinnati set aside the order and remove Borman of the case.
In an order issued Monday, three appellate judges have delayed the order for Borman to give time to examine the legal issues raised by GM.
GM is continuing its rival CAF in crosstown, alleging that he has obtained an advantage by paying back the union leaders in order to reduce the costs of labour during contract negotiations. The former head of the work of the FCA, Al Iacobelli, is in prison, although the company denies having directed the prohibited payments.
In its order last week, Borman has described the trial as a “nuclear option” that would be a “waste of time and resources” for years if it let the case move forward.
The judge ordered Barra and Manley to sit without a lawyer before the 1st of July and reach a ” resolution reasonable from the huge distraction of legal affairs “. Borman wants an update from them on a video conferencing public on the same day. In the course of the weekend, he amended the order to allow lawyers to attend the meeting.
In a folder, GM has qualified the order for Borman of “profound abuse” of power.
“The court has no authority to direct the CEO of GM and FCA to initiate discussions towards a settlement, to achieve a resolution and to appear then only at a pre-hearing conference eight days later, without a lawyer,” said the advocates of GM.
“Secondly, the tribunal has no label to classify a federal lawsuit properly filed and assigned to the court to impartial judgment “a distraction” or a “nuclear option”, ” said GM.
Borman may not be regarded as impartial, said the company’s lawyers.
The judge refused to comment. In a press release issued on Friday, Fiat Chrysler said it is ready to comply with the order of Borman. The automaker Italian-american has qualified the trial of GM without merit and has said that he would turn not the FCA of its activities. “The FCA will continue to defend itself vigorously and pursue all available remedies in response to the trial without the foundation of GM “, the statement said.
Federal agents have eliminated the corruption in the senior ranks of the United Auto Workers. The first wave of convictions in 2017 has involved key personnel from the FCA who have used the money for a training centre jointly managed to reward the union leaders.