Labor Pains
Perhaps you’ve heard about VW’s current woes...“ the car maker's human resources chief, Peter Hartz, offered to resign in order to divert damage to the company.”
Hartz (who did quit), is the man who lent his name to the German government's deeply unpopular labor reforms, the dreaded Hartz IV (pronounced ‘Hartz fear’ auf Deutsch). The news, in view of the upcoming general elections, has far-reaching political implications. Hartz is a close ally of incumbent Chancellor Gerhard Schroeder, former Minister President of the German state of Lower Saxony (which owns 18% of VW).
Hartz had effectively issued a "blank cheque" to VW's works council in order to "buy" labor representatives' approval of tough corporate restructuring measures. A manager was quoted as saying that Hartz had given clear instructions to make cash available for business trips of members of the works council, but required no justification for the expenses. Most troubling is that Volkswagen's management board paid for "pleasure trips" to Brazil and other countries, which included...well, let’s just say another definition of the word ‘company’ for leaders of the works council. Oops.
Hartz (who did quit), is the man who lent his name to the German government's deeply unpopular labor reforms, the dreaded Hartz IV (pronounced ‘Hartz fear’ auf Deutsch). The news, in view of the upcoming general elections, has far-reaching political implications. Hartz is a close ally of incumbent Chancellor Gerhard Schroeder, former Minister President of the German state of Lower Saxony (which owns 18% of VW).
Hartz had effectively issued a "blank cheque" to VW's works council in order to "buy" labor representatives' approval of tough corporate restructuring measures. A manager was quoted as saying that Hartz had given clear instructions to make cash available for business trips of members of the works council, but required no justification for the expenses. Most troubling is that Volkswagen's management board paid for "pleasure trips" to Brazil and other countries, which included...well, let’s just say another definition of the word ‘company’ for leaders of the works council. Oops.
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