Peter Hartz


Peter Hartz, was the human resources executive at the German public company Volkswagen AG. Twenty percent of Volkswagen's shares are owned by the state of Lower Saxony. Hartz became notable as adviser to German chancellor and former Prime Minister of Lower Saxony, Gerhard Schröder, with whom Hartz
developed the so-called Hartz-reforms of the German labour market and job agencies - the German welfare benefit, 'Hartz IV', is named after the fourth stage of his reforms.

Resignation

On 8 July 2005 Hartz offered his resignation
amidst allegations of wrongdoings in his area of responsibility at
Volkswagen, which include :
  1. kickbacks to Volkswagen managers from bogus companies doing real estate business with Volkswagen, especially at the Czech subsidiary Škoda Auto;
  2. favours to members of the workers council, which are illegal under German law, and;
  3. 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.

    Conviction

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.