VW and Porsche reach union agreement

 
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Though it's backwards to the way Porsche would have had it, the merger will happen

Though it's backwards to the way Porsche would have had it, the merger will happen

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The tension that has cast a backlight on the Porsche-VW acquisition found a particular intensity in the fight for seats on the joint works council. The board that represents the labor interests at the Porsche Automobil conglomerate will now have half its seats reserved for VW representatives, and half for those from Porsche's laborers.

The even split might appear equitable on its face, but it's somewhat out of balance with the actual proportion of workers: Porsche employs 12,000 workers while VW employs 360,000. To remedy the imbalance, VW's votes will carry more weight, effectively enlarging the subsidiary's presence on the board.

The head of VW's works council, Bernd Osterloh, has been appointed chairman of the joint works council, reports Automotive News Europe, as an additional nod toward VW's size and power, while Porsche's works council head, Uwe Huck, will be the deputy chairman.

The issue of worker representation had been the major remaining point of contention between the two companies, but with the latest agreement appears to have come to a resolution.



 
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