“I know some companies that use the same system as VW”

Works council board in a shipyard

Dusseldorf Wolfsburg is everywhere – at least when it comes to works council salaries in Germany. Because the most recent ruling by the Federal Court of Justice (BGH) on the payment of employee representatives is not only causing concern at Volkswagen and the four group managers originally accused. “I know some companies in Germany that use the same system as VW – they have to act now,” an industry insider reports to the Handelsblatt.

Specialist lawyers are also concerned about the verdict. The well-known employment lawyer Burkard Goepfert, for example, is convinced that “in almost every larger company there is currently at least one critical case” that causes concern for those responsible.

And lawyer Gregor Thüsing, Director of the Institute for Labor Law at the University of Bonn, warns: “Every company is now called upon to review the remuneration of its works councils. If a company decides against it, it makes itself vulnerable.”

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