HAMBURG -- Bernd Osterloh, who heads Volkswagen Group's powerful works council, is taking up a management position at the company's heavy truck unit Traton.
Osterloh, 64, will become Traton's personnel director on May 1, Traton said in a statement on Friday.
Osterloh is stepping down from all his roles at Volkswagen and will be replaced by deputy works council head Daniela Cavallo as soon as possible, the automaker's employee representatives said in a separate statement.
Cavallo will also take over Osterloh's functions on Volkswagen's supervisory board.
Osterloh has been a member of VW's supervisory board since 2005. Under Germany's system of corporate governance labor representatives make up half the board.
Osterloh's exit could weaken resistance to faster and more drastic restructuring at VW.
VW Group CEO Herbert Diess's most outspoken opponent is sidelined and "it's fair to say that it creates the opportunity to run VW in a more rational fashion," Bernstein analyst Arndt Ellinghorst wrote in a client note.