GERMANY: Porsche and VW works councils reach agreement
Volkswagen and Porsche works council leaders have reached an agreement over their representation on the board of the Porsche holding company, Porsche Automobil Holding SE.
Reuters said the agreement had been reached today, but reported no further details.
The two works councils have been in dispute over the co-determination rights of their employees on the board of Porsche SE. At the moment proposals are that Porsche and Volkswagen workers would have three representatives each on the board of the new holding company.
But, if Porsche increases its stake in Volkswagen to over 50%, as it plans to do, then Porsche SE would effectively make major management decisions regarding Volkswagen and Volkswagen workers would like greater representation. In the past they have had a blocking majority on the Volkswagen supervisory board, which prevents them making major decisions to transfer production from Germany to lower cost countries, for example.
Furthermore Volkswagen has around 30 times as many workers as Porsche, and its works council argues it should therefore have greater representation.
Reuters said that the agreement would take effect if Porsche increased its 31% stake in Volkswagen to give it majority control.