A recent report indicates that an investment mistake could have set the United Autoworker Union back by as much as $80 million.
The union’s board decided to liquidate a stock investment worth approximately $340 million in August 2023 in order to distribute pay to striking workers the following month, with plans to reinvest the leftover funds once the protests were over.
Although the strikes concluded in October 2023 after a brief month of picketing, UAW officials and members noted that, more than a year later, the remaining cash still had not been reinvested, as cited in a Reuters review.
If the union had acted quickly to reinvest the portfolio in stocks, UAW, which represents around 400,000 workers including many from General Motors, Ford, and Stellantis, could have potentially earned an extra $80 million, according to a February analysis by union staff.
The UAW did not provide immediate comments when approached for response.
Concerns arose among board members late last year as they began to notice that the union’s investment returns seemed disproportionately low compared to the stock market’s overall performance, based on documents and reports from five sources familiar with the situation.
A few individuals present at a recent meeting recalled President Shawn Fain questioning why his personal bank account was yielding higher profits than what the union was seeing.
Documents reviewed revealed that during the strikes, a federal strike fund disbursed $500 per week to workers. Instead of reinvesting the remaining shares, those funds were allocated in September 2024 across a mix of cash, fixed income, and alternative assets.
Union staff cited an $80 million discrepancy in their analysis from February 2025, although the methodology behind that figure wasn’t detailed. However, sources indicated it stemmed from comparing actual returns to general stock market performance.
This matter is currently under investigation by a federal monitor, a part of a settlement reached in 2020 following a lengthy corruption probe involving the federal government and the Department of Justice.
The responsibility of UAW investments falls to several leaders within the union, including the president, executive director, and various vice presidents like Michael Nicholson and treasurer Margaret Mock.
“We are open to the monitor’s review as we believe the claims against Margaret Mock to be baseless,” a union spokesperson stated.
Mock’s role faced scrutiny as a report by the Federal Monitor noted irregularities in her duties that emerged in February 2024.
The union committee seems to support the investigation into this investment error, with statements indicating significant compliance failures concerning the union’s financial management.
Segal Marco Advisors, the firm that collaborated with the union on the billion-dollar strike fund, did not respond to requests for comments.
