Prosecutors Investigate Payments to Volkswagen Labor Leader
Bernd Osterloh, one of Germany's most powerful labor leaders and chairman of Volkswagen's works council, is being investigated for fraud. The investigation is looking into expense payments made to Osterloh by the car company. All public companies in Germany must have a works council and, because half of the seats on companies' supervisory board must be held by labor representatives, top executives are incentivized to keep the chairman of its works council happy.
See "Prosecutors Investigate Payments to Volkswagen Labor Leader", Jack Ewing, New York Times, May 12, 2017