German Handelsblatt: VW precedent: How much can a works council earn? Surprising court ruling alarms corporations004946

Bernd Osterloh

The former head of the VW works council earned 750,000 euros a year at its peak.

(Photo: Reuters)

The process of the high payment of the former VW works council boss Bernd Osterloh has a surprising aftermath. In its judgment, the Regional Court of Braunschweig set very narrow limits for the remuneration of works councils. These should not earn more than in the last position before their election. This emerges from the extended reasoning for the judgment, which is available to the Handelsblatt. Osterloh should therefore have received just under 50,000 euros per year instead of 750,000 euros at the top.
This could have far-reaching consequences for German companies. With the verdict, the district court opted for the “strictest view”, says Gregor Thüsing, director of the Institute for Labor Law at the University of Bonn. “In companies, this leads to total legal uncertainty.” Now that the reasoning for the judgment is available, companies are well advised to review their works council remuneration.

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