UAW Investment Blunder Cost Union $80 Million In Missed Gains

The United Auto Workers (UAW) union is embroiled in controversy over an investment misstep that officials say cost the union roughly $80 million in missed gains, Reuters reported, citing union documents and interviews with seven UAW insiders.

The UAW’s investment policy allocates 30% to equities, 53% to fixed income, and 17% to alternative investments. I Photo: The White House

The union had liquidated a significant portion of its investment portfolio in August 2023 to fund strike payments. However, the proceeds were not reinvested in accordance with UAW policy for more than a year after the strike ended and new labor contracts were ratified.

According to internal documents, the union board had voted to liquidate about $340 million in stock holdings, with the intention that the funds be reinvested following the strike.

However, no timeline for reinvestment was specified, and the delay has sparked internal criticism.

Sources estimate that if the funds had been promptly reinvested into stocks, bonds, and other approved assets per the union’s policy, the UAW could have earned approximately $80 million in returns.

The UAW’s investment policy allocates 30% to equities, 53% to fixed income, and 17% to alternative investments.

The union represents around 400,000 members, including 150,000 workers at the Detroit Three: General Motors, Ford, and Stellantis. The details of the investment mismanagement have not previously been made public.