VW Raided by German Prosecutors Over Worker Chief's Pay
Volkswagen has secured even more media attention as a spokesperson confirmed that German prosecutors have been conducting an investigation surrounding the compensation earned by works council chief Bernd Osterloh, a labor leader whose salary is suspected to be inappropriately high. Having been at the center of controversy regarding its falsified diesel emissions data, the Volkswagen works council officially denied that the current probe into the organization is centered on Osterloh. As Osterloh prepares to run for re-election as chief of the works council in the coming year, this investigation may significantly damage his reputation and chances at winning should any suspicious information come to light. Both the works council and Volkswagen have maintained that Osterloh’s remuneration is compliant with the law, but there clearly exists some suspicion regarding possible tax evasion on behalf of the company if it overstates its expenses in its financial documents.
See "VW Raided by German Prosecutors Over Worker Chief's Pay", Christoph Rauwald and Karin Matussek, Bloomberg, November 15, 2017