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UAW investigation raises worries over high-impact charity funds from automakers

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As an FBI investigation looms over the UAW and Detroit Three automakers, charities that have received funding fear those dollars could be at risk.
While a corruption investigation looms over the UAW and Detroit Three automakers, charities across metro Detroit and the country that have received funding from the union and automakers fear those dollars could be at risk.
At issue is whether a special pot of money earmarked for charities has reached those organizations, as intended by the union and the automakers.
While federal investigators are looking at bank accounts and requesting documents, the money trail also shows very real positive outcomes, say those who have received funding over the years.
The UAW-Ford fund has provided millions of dollars for the Motown Museum, Detroit Public Schools’ arts, music and athletic programs, free mammogram screening, skills training for military veterans, holiday food boxes, mentoring students and renovation of youth centers in vulnerable neighborhoods.
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The Rev. Tim McCabe, executive director of the Pope Francis Center for homeless people in downtown Detroit, said he has personally witnessed the transformation created by dollars from UAW-Ford and UAW-GM.
“They came in, back in 2013, when we were just scraping by,” he said. “We were in a hallway, a warming center. They gave us a grant so we could renovate a chapel in the back of the church. We now serve 180-200 people a day.
« Back then, we were only able to serve 30-45. As the numbers have increased, we’ve been able to respond to the needs.”
McCabe used the money for clothing washers, dryers, bathrooms, showers and a commercial kitchen. The homeless center is located at Saint Peter and Paul Jesuit Church.
“Now people who are homeless can wash the stigma of being on the streets off their clothes and off their bodies, » he said.
The kitchen offers nutritious food that replaces high-sugar, high-salt scraps found on the street, and helps reduce emergency room visits for diabetics.
“UAW-Ford is a family and their community impact is beyond measure. They see themselves as part of the solution. We take care of one another,” McCabe said.
The Pope Francis homeless shelter has received more than $1 million total in partnership funds.
« If this money were to go away, our capacity as a city and a community to address homeless issues — and so many others things — would be severely impaired, » McCabe said.
Money from each of the three training and civic engagement funds comes from Ford, GM and Fiat Chrysler. The operating budget is negotiated during collective bargaining. These are not union dues.
All dollars come from the companies and programs are overseen collaboratively by union officials and the automakers.
The UAW officials under scrutiny oversee funds with more than $150 million total in assets:
Jimmy Settles, vice president of the union’s Ford department, is co-president of the UAW-Ford National Programs Center.
Norwood Jewell is cochairman of the UAW-Chrysler National Training Center.
Cindy Estrada, who heads the UAW General Motors department, is co-president of the UAW-GM Center for Human Resources.
Estrada, along with Gary Casteel, another UAW vice president, has been mentioned as a potential successor to UAW President Dennis Williams, who is expected to retire in 2018.
The union and Ford jointly gave $3.8 million to build two youth baseball fields in 2014 at Balduck Park on the city’s east side and a second in the Woodbridge neighborhood that opened in 2015
Bill Ford, executive chairman of Ford, attended the dedication of the William Clay Ford Field in Woodbridge.
“My father embodied the spirit of Detroit, and he was committed to making a difference in the lives of children in this city and beyond,” Ford said.
All automobile companies have said they’re cooperating with ongoing investigations.
Contact Phoebe Wall Howard: phoward@freepress.com or 313-222-6512

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