Daniela Cavallo has been head of the VW works council for a good two months. She wants to exemplify an open leadership culture – including financial issues.
The new VW works council boss Daniela Cavallo wants to campaign for transparency in the salaries of high employee representatives in Europe’s largest car company.
“There will of course be inquiries and discussions,” she said of “Zeit” (Thursday) with a view to the upcoming infidelity process for the release of allegedly excessive works council remuneration by four HR managers, which is to begin in September. “We will continue to discuss this openly and transparently.” Previous reviews of the subject in arbitration proceedings had shown that the salaries were probably “okay”. In addition, the following applies: “There must be no advantage, but also no disadvantage, of works council members.”
Cavallo stated her own fixed annual salary at a good 100,000 euros – on top of that, as with many other senior VW employees, bonuses that depend on business success and other criteria, which can often be lavish, are added. With her it is currently “an additional five-digit amount,” explained Cavallo. At the upcoming Annual General Meeting of the Group on July 22nd, further adjustments to environmental and social criteria as well as the quality of corporate management will be discussed, which will be included in the calculation of Management Board remuneration. VW is gradually introducing this system for members of middle to upper management as well.
Cavallo’s predecessor Bernd Osterloh – head of HR at VW commercial vehicle holding Traton in Munich since the beginning of May – had earned more than 700,000 euros per year in some cases. In relation to their qualifications and experience, she said about the sum: “I think that can be communicated.”
The question of what level of salary should be set for leading works councils is considered controversial. While critics of excessively high salaries also smell possible scuffles between top management and employee representatives, proponents point to the vague regulations of the aging Works Constitution Act, for example. In each case, it must be estimated where senior colleagues from the works council would be today with an otherwise comparable career in management.
This should also be discussed at the trial in Braunschweig from September 7th. According to the public prosecutor’s office, VW suffered damage of over five million euros as a result of excessive payments to influential works councils approved by ex-HR managers. The profit and thus income taxes were reduced inadmissibly. An additional aid proceeding against Osterloh is separated from it.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
