In a sensational ruling, the Supreme Court (OGH) has ruled that the long-time chairman of the works council of Austrian Airlines (AUA), Alfred Junghans, wrongfully received excessive salary payments and must now repay these to the company.
The decision is based on the so-called prohibition of privilege, which prohibits preferential treatment of works council members compared to comparable employees. AUA's lawsuit, filed in 2019, demands repayment totaling €192.234,77. The ruling could also have implications for further proceedings against other works council members.
Background to the salary increases
In 2009, when AUA was on the verge of insolvency and receiving government subsidies, the salaries of three released works council members, including Alfred Junghans, were significantly increased. Junghans received a salary increase from €6.000 to just under €11.000 per month. These increases were approved by the then management. It wasn't until later AUA CEO Alexis von Hoensbroech took over that salary cuts were reversed and repayment claims initiated.
The Supreme Court found that there were no plausible reasons for the salary increases and thus violated the prohibition of privileges. The court ruled that Junghans must retroactively repay the excess salaries. This decision could also be relevant for other works council members, such as Harald Ramoser, against whom similar proceedings are pending.
Reactions and consequences
Alfred Junghans was unavailable for comment. AUA emphasized that it had to ensure that everything within its company was conducted legally and therefore saw no other option than to take legal action.
The ruling also impacts the internal structure of the works council. Junghans withdrew from the works council election and was replaced by René Pfister. The "Choose" list received a significant share of the vote in the election and brought a breath of fresh air to the council. The news magazine "Trend" was the first to report on the Supreme Court ruling.
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