VW Executive Denies Job Change Rumors

Volkswagen's human resources director Peter Hartz denied reports that he’s to succeed Florian Gerster as the head of the Federal Labor Office. According to a story in the Chemnitz newspaper Freie Presse, Hartz -- the head of the federal government’s commission on labor market reforms -- was being considered as a replacement for Gerster, who has recently come under heavy criticism. The Ministry for Economics denied the rumors, as did Volkswagen. "Hartz is and will remain the human resources director of Volkswagen," said a VW spokesperson. Gerster has come under pressure for allegedly having misused Federal Labor Office funds. According to one newspaper, his business expenses are 76 percent higher than those of his predecessor. Gerster has also been criticized for signing a controversial €1.3 million ($1.5 million) contract with the consulting agency WMP Eurocom to come up with a new communications strategy for the Federal Labor Office. In the end, the pressure proved too great -- Gerster has announced that the contract with WMP is to be dissolved.