It moves Mr Osterloh (64) from all his roles at Volkswagen and his position as Germany’s most powerful trade unionist with 660,000 global workers at Volkswagen and through his position with the world’s biggest union, IG Metall, a further 2.2 million people.
He will be replaced by deputy works council head Daniela Cavallo.
Mr Osterloh, who took up his current position in 2005, left an indelible mark on Volkswagen.
The trade unionist was feared by bosses for his ability to impose his views as, traditionally in the company, the employee council exerts a stronger influence than elsewhere on decision-making.
The appointment of his deputy, Ms Cavallo (46), makes her the most powerful trade unionist and it becomes the first time that a woman will take over the presidency of the VW Employees Council, one of the most prominent positions in German capitalism.
Ms Cavallo will also sit on the manufacturer’s supervisory board, a strategic body for the group due to the presence of the Land of Lower Saxony, which often allies with employee representatives (50 per cent of seats) to protect jobs.
Mr Osterloh’s departure as labor leader marks the end of an era at Volkswagen. After training as a business administrator, he joined the company in 1977. He became works council chairman in 2005 and wielded substantial sway across the group.
He frequently clashed with top executives including Volkswagen Group CEO Herbert Diess and pulled no punches in disputes over cutbacks with Volkswagen’s Porsche and Piech families.
In a statement Mr Diess said Mr Osterloh had “constructively questioned the management and has thus helped time and again to find solutions that were in the company’s best interests.”
Traton CEO Matthias Gründler said Mr Osterloh’s “extensive experience in a globally positioned organisation will have a positive impact on cooperation among our brands and partnerships.”
Mr Osterloh said his successor, Ms Cavallo, “has done excellent work as my deputy for two and a half years.”
By Neil Dowling
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