Prior to the establishment of Porsche Automobil Holding resolved on Tuesday (26 June), the management board of Porsche AG and the Besondere Verhandlungsgremium (or BVG, special negotation board) reached an agreement covering employees in the new holding.

The BVG was formed on 10 May and is made up of 17 delegates from the Porsche group and its national companies in the EU member states Austria, Czech Republic, France, Germany, Great Britain, Ireland, Italy, and Spain, as well as representatives of the IG Metall German metalworkers union.

The agreement determines the abilities and tasks of employees in the works council of the new holding as well as the procedure for the election of the future SE works council and the representation of employees on the SE supervisory board.

The supervisory board of Porsche Automobil Holding will be made up of 12 members, with parity representation of employers and employees.

Uwe Hück, chairman of the group works council of Porsche, said: “Establishing the holding was essential to maintain Porsche’s independence and autonomy also in future – we want Porsche to remain Porsche. I believe that particularly with this in mind both sides have achieved a fair result.”

Hück said Porsche’s workforce, through commitment, skills, dedication, performance and hard work, had established the economic foundation required for acquiring a stake in VW and increasing this participation beyond the 30% level of Volkswagen common stock.

Hück added: “It is particularly important for us to have transferred the basic principles of German co-determination to the new Porsche Automobil Holding SE.”

Should further entities within the group join the holding in future, he said, representatives of such companies would duly join the SE works council under the new agreement, with decisions being taken on an appropriate majority basis.

Employees’ seats on the SE supervisory board “will be spread out on a fair and equitable basis among all companies within the group”.

He added that the trade unions currently represented on Porsche’s supervisory board would be receiving their seats on the new SE supervisory board in accordance with the German co-determination act, in terms of both the number of seats and the right to propose members of the supervisory board.