Court Initiates Criminal Proceedings Against Former VW Works Council Chief Osterloh

The Braunschweig Regional Court has commenced criminal proceedings against Bernd Osterloh, the former chairman of the Volkswagen Works Council, in response to allegations regarding potentially inflated compensation for council members. This development follows the decision by the Federal Court of Justice to overturn previous acquittals of several VW managers linked to the issue.

Reports indicate that the court has accepted the prosecution's charges, which include aiding and abetting the award of excessive payments in three specific instances. Alongside Osterloh, another individual is also facing similar accusations. No dates for the court hearings have been scheduled as of yet.

Osterloh, who served as the powerful head of the VW Works Council from 2005 until 2021, has opted not to comment on the allegations, stating he will refrain from discussing the matter further.

This case stems from a broader investigation that initially began in 2021, focusing on four VW personnel managers accused of approving disproportionately high salaries for various Works Council members, including Osterloh himself. During particularly profitable years, it has been reported that his earnings peaked at around EUR750,000.

In the earlier proceedings, all accused parties were acquitted; however, this ruling was nullified by the Federal Court of Justice in 2023, necessitating a retrial of the case. The new trial will consider Osterloh's role more seriously, as he was only questioned as a witness during the previous hearings.

Currently, the prosecution has separated the proceedings against Osterloh and his co-defendant from the ongoing case against the previously acquitted VW managers, indicating that they will be dealt with in distinct judicial processes.

Osterloh transitioned from his position as Works Council chief to a role as Human Resources Director at Volkswagen's truck division after his retirement in 2023, with Daniela Cavallo succeeding him in the council leadership.