Peter Hartz

Peter Hartz (born 9 August 1941 in Sankt Ingbert), was the human resources executive at the German public company Volkswagen AG (VW). Twenty percent of Volkswagen's shares are owned by the state of Lower Saxony. Hartz became notable as adviser to German chancellor and former head of the state of Lower Saxony Gerhard Schröder, for whom Hartz developed the so called "Hartz-reforms" of the German labour market and job agencies - the German welfare benefit, 'Hartz IV', is called after the fourth stage of his reforms. On 8 July 2005 [ [http://www.volkswagen-media-services.com/medias_publish/ms/content/de/pressemitteilungen/2005/07/08/persoenliche_erklaerung.standard.gid-oeffentlichkeit.html press release/statement of Peter Hartz (in German)] ] Hartz offered his resignation(which was accepted a few days later)amidst allegations of wrongdoings in his area of responsibility at
Volkswagen, which include :
# kickbacks to Volkswagen managers from bogus companies doing real estate business with Volkswagen, especially at the Czech subsidiary Skoda Auto;
# favours to members of the workers council ("Betriebsrat"), which are illegal under German law (the chairman of the workers council, Klaus Volkert, had resigned 30 June 2005), and;
# the use of prostitutes at the company's expense, sometimes in company-owned apartments and under the influence of Viagra, which had been prescribed by the company's medical service.

Following a deal with the prosecution, Hartz confessed to the charges, and on 25 January 2007, he was convicted to a prison term of 2 years, but set free on probation, and to a fine of 576.000 Euro [ [http://news.bbc.co.uk/2/hi/business/6269113.stm BBC NEWS | Business | Former VW boss admits corruption ] ] [ [http://www.spiegel.de/politik/deutschland/0,1518,462564,00.html Arbeitsmarktreform: Hartz IV soll nicht mehr nach Hartz heißen - Politik - SPIEGEL ONLINE - Nachrichten ] ] .

References

ee also

*article about the scandal at Volkwagen in Peter Hartz's area of responsibility in the German Wikipedia