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Volkswagen wants to revise the payment of works councils

2023-02-17T14:48:07.349Z


Lush bonuses for members of the works council – unlikely in the future at VW. A judgment of the BGH forces the car manufacturer to new rules. It could also have far-reaching consequences in other companies.


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VW logo at the main plant in Wolfsburg:

Photo: YANN SCHREIBER / AFP

In January, the Federal Court of Justice (BGH) overturned acquittals for four former VW HR managers in connection with salaries and lavish bonuses for works councils.

The Federal Court of Justice has now published the details of its decision - and is likely to force Volkswagen to revise the payment of works councils.

»Volkswagen AG has taken note of the reasoning behind the judgement.

The company will take into account the findings contained therein on the scale of works council remuneration," said the group's headquarters in Wolfsburg.

In the specific case, the question was whether those responsible at VW had approved unreasonably lavish salaries and bonuses for senior staff representatives between 2011 and 2016.

Ex-works council chief Bernd Osterloh, for example, came to more than 700,000 euros in some years.

The public prosecutor's office in Braunschweig brought charges of breach of trust.

The district court in Braunschweig could not identify any intent and acquitted the four personnel managers - which the BGH reversed again.

According to the judgment just published by the Federal Court of Justice, "hypothetical" assumptions about the further career of a works council member alone should not be used as a benchmark for their payment.

Essentially, when it comes to salary classification, only a comparison with colleagues who had similar activities and positions when they started working in the employee representative body is permissible.

Works council rails against BGH

The judge's verdict could have far-reaching consequences for the remuneration of works councils in many other companies.

Because the interpretation of the highest German criminal court comes into conflict with earlier judgments of labor courts on this point, among other things.

In addition, provisions of the relevant Works Constitution Act are considered vague by a number of lawyers.

The Volkswagen works council sharply criticized the BGH at the request of SPIEGEL.

"It is a scandalous verdict that is tantamount to a nationwide frontal attack on co-determination," said a spokesman.

In the case of an essentially labor law question, the BGH as a criminal court brushes aside the years of supreme judicial practice of the Federal Labor Court.

As a result, this is now permitted under labor law, which is also prohibited under criminal law.

"Of course, affected works council members will use all legal means to defend themselves against this BGH ruling - also with the full support of IG Metall," said the spokesman.

In addition, the works council at Volkswagen has always been a mirror of the workforce, since 98 percent of its members are paid according to collective bargaining agreements, while this applies to 96 percent of the entire workforce.

The average salary of the works council members is already comparable to that of the entire workforce.

Source: spiegel

All business articles on 2023-02-17

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