General Motors Co. has accused rival Fiat Chrysler Automobiles NV of bribing union officials to gain a labor-cost edge, but winning damages could be difficult, legal experts say, the Wall Street Journal reported. GM sued Fiat Chrysler last week, claiming the Italian-American car company purposely tried to hurt GM by paying off union officials to win more-favorable contracts with the United Auto Workers over the past decade. GM cited a long-running federal corruption investigation that has led to convictions of several union officials and guilty pleas from three Fiat Chrysler employees. Fiat Chrysler plans to fight GM’s lawsuit, which it said is without merit. The company, which last month agreed to a $50 billion merger with PSA Group of France, is in negotiations with the UAW on a new four-year contract. To win, GM will need to show that the alleged fraud that prosecutors say corrupted the collective-bargaining process between Fiat Chrysler and the UAW had a direct, negative impact on GM’s business, legal experts say. These types of racketeering lawsuits face long odds and often are settled or dismissed before they go to trial.
