As of: 09/20/2021 2:08 PM.
In the process of potentially exorbitant pay for works councils at Volkswagen, ex-works council chief Bernd Osterloh testified. He denied any influence on his own salary.
Osterloh, who was called as a witness and is being investigated for aiding and breach of trust in separate proceedings, spoke on Monday about several high-value offers from the group. Among other things, it was about the group’s human resources director with a million-dollar salary, Osterloh said before the Braunschweig regional court. He was offered HR manager positions several times. “The proposals were clear, I just had to say yes, then it would be implemented,” Osterloh said. Regarding possible pay for the proposed positions, the 65-year-old said: “I was not involved in any pay determinations that affect myself.”
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Four HR managers in court
In the process Volkswagen has been accused of excessive salary and bonus payments to senior executives. Three former and one current human resource manager of the group have been charged. The Public Prosecutor’s Office accused him of approving exorbitant bonuses and salaries for work councils – also for former executive council chief Osterloh. The allegation is a breach of trust, which is said to have caused the company to lose more than five million euros. In doing so, he would have violated the Works Constitution Act.
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The defendants denied the allegations
The defendants and their attorneys deny the allegations. “I didn’t start with the assumption that I might be illegally favoring Mr. Osterloh and others,” ex-HR manager Karlheinz Blessing said at the start of the process in early September. And Horst Neumann, VW HR manager as of 2015, said of the higher pay: “These employee representatives interact on an equal footing with management.” You can’t pay them at their starting salary level.”
Osterloh apparently made around 750,000 euros in 2014
Osterloh’s income, including salary and extras, was much more than allowed by the public prosecutor’s office. According to the information received from the news magazine “Mirror” Osterloh is said to have earned around 745,600 euros in 2014 alone. The prosecutor said it was suspected that the company was paying its employer representatives that much money to conduct a weigh-in. Osterloh resigned in April from his position as chairman of the General and Group Action Council and the relevant supervisory board position. Shortly after, he moved to VW subsidiary Trayton as head of human resources.
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