For decades Volkswagen, Europe's largest carmaker, has enjoyed a reputation for having one of Germany's most highly-developed systems of labour/management co-operation, with managers involving employee representatives in crucial decisions on the shop-floor, on the supervisory board, and all points in between.

Now that reputation is in danger of turning sour, as details leak out of an alleged bribery and fraud scandal involving senior managers and worker representatives. Moreover, many trade unionists fear the scandal could have negative labour relations implications reaching far beyond VW.