Former head of personnel at Volkswagen on trial for ‘breach of trust’

The trial of Volkswagen‘s former personnel chief, Peter Hartz, began in Brunswick court on January 16, 2007. He stands accused of breach of trust and preferential treatment.

Hartz is suspected of having set up a vast corruption network to buy labour peace at Volkswagen. For years, the HR department is alleged to have showered prominent labour officials at the company with bribes to pay for trips and prostitutes.

Hartz is an important figure in the Germany’s economic and social life. Head of personnel for 12 years, he once served as advisor to the Schroeder government on a series of unpopular labour market reforms. The latest law, called Hartz IV, led to major cuts to the jobless benefit system.

The misdeeds of Peter Hartz, considered in Germany as the inventor of the “four-day week” concept, will have cost his company a mere 5 million euros. He faces a maximum sentence of 10 years in prison.

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