The workers council at German auto giant Volkswagen (VW) has filed a lawsuit against major shareholder Porsche to block an agreement covering the future Porsche Automobil-Holding company, a press report said.
The council wants to thwart the planned workers participation agreement that would take effect if Porsche raises its stake in VW to more than 50 percent, the daily Berliner Zeitung said in a pre-release of its September 18 edition.
Under terms of the agreement, now to be scrutinised by the Stuttgart labour court, three VW workers representatives would face three Porsche employer representatives in the supervisory board of the holding company.
The two groups have different corporate cultures, with workers in a position of strength at VW while Porsche managers have maintained a tight grip on their company.
Volkswagen's powerful trade unions fear what could happen if Porsche were to take control of the much bigger VW. Porsche head Wendelin Wiedeking recently told the German press that if that happens, the luxury carmaker would show little regard for "sacred cows".
Wiedeking said last week his company has secured a "sufficient" amount of financial instruments and derivatives to allow it to increase its current 31 percent stake in VW to significant levels.
Several German media reports recently said Porsche plans to increase its stake in VW to 51 percent. The unions have warned Wiedeking not to push too hard if that happened, but he told journalists at the Frankfurt motor show: "When a company is not competitive, this has consequences for its employees too."