Unifor, the former Canadian Auto Workers union, charged former President Jerry Dias with extorting the equivalent of $40,000 from a supplier of COVID-19 tests to various employers where the union represents employees.
Dias, who was president for eight years, retired March 11 as the murmurs about deal began to grow louder. However, he cited medical issues as the reason for leaving, having been on medical leave since Feb. 6. His departure came five months ahead of his expected retirement at Unifor’s constitutional convention in Toronto in August.
Unifor’s National Executive Board charged Dias with “breaching” the union’s constitution. Officials reached the decision after an independent external investigator determined “that on the balance of probabilities Dias breached his obligations in an interaction with a third-party supplier.”
The breach did not involve any Unifor finances, and it is not clear whether Dias could face charges in a Canadian court, according to the union. Unifor National Secretary-Treasurer Lana Payne commissioned the investigation after receiving a formal complaint against Dias on Jan. 26, 2022.
Unifor committed to transparency
Payne, who temporarily has replaced Dias as the union’s leader, added the union is committed to transparency in this matter.
“Our Constitution requires that an investigation be conducted in a confidential and fair manner. Now that the investigation has concluded, Unifor wishes to share the results with its members. Every step was taken to investigate and bring this matter to light in a fair and timely manner,” she said.
Dias declined to cooperate with the investigation or offer a statement in his defense, according to the union’s communications director.
The independent investigator determined that Dias engaged in a number of violations of the Unifor Code of Ethics by accepting money from a supplier of COVID-19 rapid test kits that he introduced to employers of Unifor members, the Unifor report said.
None of the employers had knowledge of Dias’ personal interest in the transactions, and so Unifor declined to identify them. The supplier was not a participant in the investigation so will not be identified, the report added.
What happened
In December 2021 and January 2022, Dias promoted a supplier’s rapid test kits to various Unifor employers, either directly or through Unifor staff under his direction. Several employers of Unifor members purchased tests as a result of Dias’ introductions, the report said.
At some point prior to January 20, 2022, Dias accepted the sum of $50,000 in Canadian currency from the supplier, and gave a Unifor employee what Dias said was half of the money, telling the employee that it had come from the supplier.
After being offered the money, the Unifor employee subsequently lodged a complaint under the Unifor Code of Ethics and delivered the funds that he received from Dias to the National Secretary-Treasurer.
During his tenure as president, Dias, a former staff member of the old Canadian Auto Workers union, which merged with other union’s nearly in 2013 to create Unifor, had led the union through successive rounds of negotiations with General Motors, Ford and Stellantis. He has been credited with helping maintain the Canadian auto industry in the face of competition from Mexico.