Volkswagen
The VW works council had announced lawsuits after the BGH ruling and spoke of a “nationwide attack on co-determination”.
(Photo: Reuters)
After salary cuts following a decision by the Federal Court of Justice (BGH), Volkswagen is facing dozens of lawsuits from works councils. As the Handelsblatt learned from several people familiar with the matter, at least five cases are pending before labor courts, two in Hanover and three in Braunschweig. An attempt to agree on a quality date at the start of the process failed, and negotiations must now continue.
In addition, up to 15 other employee representatives have announced concrete lawsuits, according to circles familiar with the procedures. According to this, employee representatives in Kassel and Emden could soon go to court against VW.
In February, Germany’s largest car manufacturer cut the salaries of almost 80 employee representatives as a result of a ruling by the Federal Court of Justice, and this has met with resistance. “The vast majority will choose to take legal action,” announced a works council spokesman – and named a mid-double-digit number of plaintiffs.
A company spokesman considers it “understandable that those affected are taking legal action” and are seeking clarity about their remuneration as a works council through labor court proceedings. “This is also in the interest of Volkswagen AG.” In this respect, the company welcomes “the expected clarification by the labor courts as the competent specialist jurisdiction”.
According to Handelsblatt information, VW had cut the salary of its works councils by up to 4,000 euros a month. The first cases that are now being negotiated involve significantly smaller sums.
Almost 300 euros less
The case in Hanover, which was heard for the first time on Tuesday, was about a member of the works council of VW commercial vehicles who, after the BGH ruling, had dropped from pay level 14 (currently: 5177 euros) to pay level 13 (4879 euros). In addition, the person concerned should pay back around 1500 euros of his salary.
Another case involving a works council from Salzgitter, which is to be negotiated in Braunschweig on Thursday, involves a reduction from level 12 (EUR 4,598) to level 11 (EUR 4,317). Just like the works council in Hanover, the employee representative from Salzgitter was paid for years according to the “hypothetical career” model.
To put it simply, an estimate is made of the career path an employee would have taken if he had not been a member of the works council. This is a popular remuneration model for numerous works councils in German industrial companies, not just at VW.
In mid-January, however, the BGH declared this remuneration model to be inadmissible. According to the judges, a works council salary “should be measured according to the remuneration of comparable employees with customary company developments”. As a result of the ruling, VW had to adjust dozens of employee representative salaries downwards.
Among other things, the court is now arguing about which group of comparable employees is the right one for the affected works councils. In the first case in Hanover, the employee side sees a higher salary level as appropriate, VW a lower one.
Ask for a corresponding comparison person
The Group must disclose the comparators by April 28 and explain why they should be appropriate and not others or a larger or smaller group. VW did not want to comment on the details of the ongoing process.
The lawsuits come as no surprise. The VW works council had announced lawsuits after the BGH ruling and spoke of a “nationwide attack on co-determination”. The IG Metall trade union had also warned that the judgment would lead to “enormous legal uncertainty” for those affected and called on the legislature to ensure legal clarity.
The interpretation of the BGH as the highest German criminal court conflicts with earlier judgments of several labor courts and the Federal Labor Court. The judge, who was now hearing the case in Hanover, indicated that the issues discussed could certainly end up in Erfurt – the seat of the Federal Labor Court.
More: Significant salary cut expected for VW works council.