Volkswagen – The German Court to start a judicial proceeding for the bonus to trade unionists

The Volkswagen will face a new court procedure in Germany. This time it’s not a case linked to the dielsegate, but an investigation launched in 2016 by the public Prosecutor of Braunschweig on the remuneration of five members of the works council, including the chairman Bernd Osterloh, the figure of the apex of the influential trade union IG Metall and member of the supervisory board of the group’s German car. In essence, the regional court of the city of Lower Saxony has decided to accommodate the requests of the prosecutors, and to initiate court proceedings.

The suspects. The center of the investigation of the prosecution and of the complaint include two former members of the board of management of Volkswagen, the current head of human resources and its predecessor. All four of them, in charge of determining the wage levels and the prizes for the members of the board of the factory (the maximum the board of statutory auditors within the German companies of a larger size, according to the model of co-management), are accused of violating the fiduciary obligations of contracts with the company, granting to the representatives of the workers ‘ compensation excessive and wasting consequently the funds of the company. In this regard, the prosecutor believes that the Volkswagen has, probably, squandered more than € 5 million between may 2011 and may 2016, and then sustained damage due to the decisions of its leaders.

The location of the House. For now, Wolfsburg have not arrived comments on the start of the proceedings. In response to the suspected initial and to the related searches at the offices and corporate houses of the manager, the company had pointed out how the fees have been established following the recommendations of the regulations or the codes of conduct applied in Germany. Therefore, there would not have been illegal or criminal in the remuneration of the individual members of the board of the factory. However, already in 2017, at the time of the notice of initiation of the investigation file, the Volkswagen had decided to cut salaries and suspend bonus of the 14 members of the board of the factory. The decision was motivated by the need to adopt a precautionary measure until it would clear the whole story. The investigation and the relevant proceedings do not concern the German company, but only individual leaders finished in the crosshairs of the judiciary.

Source: Quattroruote.en – Edited by Anthon K.