News
Fiat Chrysler gets $30M fine for paying off union leaders
On Tuesday, a federal judge fined Fiat Chrysler Automobiles (FCA) $30 million after the legacy OEM admitted to paying off leaders from the United Autoworkers (UAW) union.
“There is a need for this sentence imposed to reflect the seriousness of the offense, promote respect for the law and provide just-punishment for the offense to adequately deter criminal conduct from any other corporations or executives of corporations considering such criminality,” said US District Court Judge Paul Borman, who presided over the case.
In March, FCA—which is now part of Stellantis after a merger between Fiat Chrysler and PSA Peugeot—pleaded guilty to paying off UAW leaders to try and win concessions in negotiations covering thousands of factory workers.
The scheme involved the head of FCA labor relations Al Iacobelli and five UAW officials plus a spouse. FCA’s conviction revealed that UAW officials received more than $3.5 million in cash and other valuables from a jointly run trading center for over eight years.
In 2018, Iacobelli was sentenced to 5 1/2 years in prison, later reduced to 18 months due to his cooperation. Union vice president named General Holiefield was part of the payoffs, too. Holiefield was reportedly able to eliminate a $262,000 home mortgage in 2014 with the money from the training center before he died in 2015.
Holiefield was succeeded by Norwood Jewell, who was sentenced to 15 months in prison. According to his plea deal, Jewell paid for $60,000 in meals and golfing activities with training center credit cards.
FCA’s $30 million fine comes weeks after US President Joe Biden stood with Detroit’s Big 3 automakers—including Stellantis—and the United Auto Workers union at a White House event marking the country’s commitment to sustainable transportation. Many wondered why Tesla was not invited to the event as it is a leader in the global EV market.
On the same note, people also wondered by Ford, GM, and Stellantis were invited to the White House event given their lackluster efforts to push electrification over the years. Detroit’s Big 3 didn’t even fully commit to pure electrification at the White House event.
“Today, Ford, GM, and Stellantis announce their shared aspiration to achieve sales of 40-50% of annual US volumes of electric vehicles (battery electric, fuel cell, and plug-in hybrid vehicles) by 2030 in order to move the nation closer to a zero-emissions future consistent with Paris climate goals,” the Big 3 announced in a joint statement.
In a briefing, White House press secretary Jenn Psaki hinted that Tesla’s absence and the presence of Detroit’s Big 3 might have had to do with the latter’s affiliations to the United Auto Workers union. “These are the three largest employers of the United Auto Workers (UAW), so I’ll let you draw your own conclusion,” she said.
The Teslarati team would appreciate hearing from you. If you have any tips, reach out to me at maria@teslarati.com or via Twitter @Writer_01001101.
Elon Musk
SpaceX secures win as US labor board drops oversight case
The NLRB confirmed that it no longer has jurisdiction over SpaceX.
SpaceX scored a legal victory after the National Labor Relations Board (NLRB) decided to dismiss a case which accused the company of terminating engineers who were involved in an open letter against founder Elon Musk.
The NLRB confirmed that it no longer has jurisdiction over SpaceX. The update was initially shared by Bloomberg News, which cited a letter about the matter it reportedly reviewed.
In a letter to the former employees’ lawyers, the labor board stated that the affected employees were under the jurisdiction of the National Mediation Board (NMB), not the NLRB. As a result, the labor board stated that it was dismissing the case.
As per Danielle Pierce, a regional director of the agency, “the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”
The NMB typically oversees airlines and railroads. The NLRB, on the other hand, covers most private-sector employers, as well as manufacturers such as Boeing.
The former SpaceX engineers have argued that the private space company did not belong under the NMB’s jurisdiction because SpaceX only offers services to “hand-picked customers.”
In an opinion, however, the NMB stated that SpaceX was under its jurisdiction because “space transport includes air travel” to get to outer space. The mediation board also noted that anyone can contact SpaceX to secure its services.
SpaceX had previously challenged the NLRB’s authority in court, arguing that the agency’s structure was unconstitutional. Jennifer Abruzzo, the NLRB general counsel under former United States President Joe Biden, rejected SpaceX’s claims. Following Abruzzo’s termination under the Trump administration, however, SpaceX asked the labor board to reconsider its arguments.
SpaceX is not the only company that has challenged the constitutionality of the NLRB. Since SpaceX filed its legal challenge against the agency in 2024, other high-profile companies have followed suit. These include Amazon, which has filed similar cases that are now pending.
News
Tesla accuses IG Metall member of secretly recording Giga Berlin meeting
The union has denied the electric vehicle maker’s allegations.
Police seized the computer of an IG Metall member at Tesla Giga Berlin on Tuesday amid allegations that a works council meeting was secretly recorded.
The union has denied the electric vehicle maker’s allegations.
In a post on X, Gigafactory Berlin plant manager André Thierig stated that an external union representative from IG Metall attended a works council meeting and allegedly recorded the session. Thierig described the event as “truly beyond words.”
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote in his post on X.
Police later confirmed to local news outlet rbb24 that officers did seize a computer belonging to an IG Metall member at the Giga Berlin site on Tuesday afternoon. Tesla stated that employees had contacted authorities after discovering the alleged recording.
IG Metall denied Tesla’s accusations, arguing that its representative did not record the meeting. The union alleged that Tesla’s claim was simply a tactic ahead of upcoming works council elections.
The next works council election at Giga Berlin is scheduled for March 2 to 4, 2026. The facility’s management had confirmed the dates to local news outlets. The official announcement marks the start of the election process and campaign period.
Approximately 11,000 employees are eligible to participate in the vote.
The previous works council election at the plant took place in 2024, and it was triggered by a notable increase in workforce size. Under German labor law, regular works council elections must be held every four years between March 1 and May 31.
Elon Musk
Elon Musk’s xAI plants flag in Bellevue AI hotspot
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Elon Musk’s artificial intelligence company xAI has leased a full floor at Lincoln Square South in downtown Bellevue, WA, as per city permit filings.
The lease places xAI’s new office in one of the region’s fastest-growing tech hubs.
Public records indicate that xAI leased roughly 24,800 square feet in Lincoln Square South. The location was previously occupied by video game company Epic Games. Lincoln Square South is part of the Bellevue Collection, which is owned by Kemper Development Co.
The lease was first referenced in January by commercial real estate firm Broderick Group, which noted that an unnamed tenant had secured the space, as stated in a report from the Puget Sound Business Journal. Later filings identified xAI as the occupant for the space.
xAI has not publicly commented on the lease.
xAI hinted at plans to open an office in the Seattle area back in September, when the startup posted job openings with salaries ranging from $180,000 to $440,000. At the time, the company had narrowed its location search to cities on the Eastside but had not finalized a lease.
xAI’s Bellevue expansion comes as Musk continues consolidating his businesses. Last week, SpaceX acquired xAI in a deal that valued the artificial intelligence startup at $250 billion. SpaceX itself is now valued at roughly $1.25 trillion and is expected to pursue an initial public offering (IPO) later this year.
Musk already has a significant presence in the region through SpaceX, which employs about 2,000 workers locally. That initiative, however, is focused largely on Starlink satellite development.
Bellevue has increasingly become a center for artificial intelligence companies. OpenAI has expanded its local office footprint to nearly 300,000 square feet. Data infrastructure firms such as Crusoe and CoreWeave have also established offices downtown.
SpaceX secures win as US labor board drops oversight case
Tesla accuses IG Metall member of secretly recording Giga Berlin meeting
