Hans-Juergen Uhl was fined 39,200 euros (£26,500) by a German court, after being charged with aiding and abetting a breach of trust and lying under oath.
At heart was whether he had used company funds for illegal activities, while on the firm's works council.
In January, a key Volkswagen official was fined 560,000 euros for allowing illegal payments to the works council.
Peter Hartz initially received a two-year prison sentence, but escaped going to prison after he managed to reach a deal with prosecutors about giving evidence.
In Germany, works councils include workers and management, and play a crucial role within major companies.
Confessed
Mr Uhl - who quit his position with the Social Democrats in May - had been on the works council from 1990 to 2006.
He was charged with lying to prosecutors who were investigating whether foreign prostitutes were paid for with Volkswagen money.
After December, parliament lifted his political immunity, opening the possibility for him to be charged.
He had already confessed in January before the trial in Wolfsburg started.
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