By Jess McCabe | 11 January 2008, 18:03

Today we learn that Volkswagen ran a slush fund to pay for prostitutes “and mistresses” for union leaders, courtesy of The Times.

Why are prostitutes and ‘mistresses’ lumped together, I wonder? Perhaps that should be no surprise in a company that sets aside a pot of money money to pay for employees to visit brothels. Even better, this was all designed to “reward” union leaders. This is the apparently the result of laws meant to bring unions to the table and have some input into decisions on the way the business is run.

Ferdinand Piëch, former boss of the German car maker, unsurprisingly denies all knowledge of the practice.

On Tuesday a secretary named only as Silke W explained how she was ordered to find a flat in Brunswick where union leaders could be entertained by prostitutes. She found a place with an underground garage and a lift that went almost to the door of the flat so that the men could come and go unrecognised. She also witnessed her boss, Mr Gebauer, arranging for prostitutes in Bratislava. Mr Volkert’s mistress was particularly troublesome, ringing her up to change flight and hotel bookings – all made and paid for from the VW account.

(Via Lilith’s weekly news round up)

Photo by hoveringdog, shared under a Creative Commons license