VW scandal to sweeten up union leaders with, ahem, "horizontal refreshment"
07-12-2005, 04:57 PM
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VW scandal to sweeten up union leaders with, ahem, "horizontal refreshment"
The growing Volkswagen bribery scandal took a fresh twist today with allegations that the company had facilitated luxury travel and the use of prostitutes by some leaders of its unionised workforce.
The authoritative Suddeutsche Zeitung newspaper said work council members had been invited on trips to Brazil and other countries in the company jet.
It claimed highclass hookers were often aboard and their clients given "vouchers" from VW of up to e30,000 (Pounds 20,000) each to pay for them.
It alleged VW wanted to sweeten the unnamed union leaders to ensure they agreed to changes to working practices, including moreflexible working hours and possible migration of manufacturing jobs to lower-cost centres such as China.
VW personnel chief Peter Hartz denied claims that management had sought to bribe the works council, describing them as "absurd".
Works council factory chief Bernd Osterloh also denied the council was "bought out". Former council boss Klaus Volkert, who stood down last week - nine months earlier than expected - said: "I received no financial advantages nor wanted to allow other people to to do so to the detriment of VW."
The latest twist in the saga comes as the authorities begin an investigation into original allegations sparked by the shock resignation last month of Helmuth Schuster, personnel chief at VW's Czech arm, Skoda.
He left the company amid allegations that he took bribes from potential suppliers and claims in magazine reports that he used front companies to secure lucrative VW contracts abroad.
VW last week called in auditor KPMG to review the matter, but has declined to make a statement on "internal matters".
Since Schuster's departure, VW has been rocked by a series of further allegations, which appear to have caused chairman Bernd Pischetsrieder to postpone a decision on construction of a new factory in India and an assembly plant in Angola.
http://motortrend.com/features/news/112_news69/
The authoritative Suddeutsche Zeitung newspaper said work council members had been invited on trips to Brazil and other countries in the company jet.
It claimed highclass hookers were often aboard and their clients given "vouchers" from VW of up to e30,000 (Pounds 20,000) each to pay for them.
It alleged VW wanted to sweeten the unnamed union leaders to ensure they agreed to changes to working practices, including moreflexible working hours and possible migration of manufacturing jobs to lower-cost centres such as China.
VW personnel chief Peter Hartz denied claims that management had sought to bribe the works council, describing them as "absurd".
Works council factory chief Bernd Osterloh also denied the council was "bought out". Former council boss Klaus Volkert, who stood down last week - nine months earlier than expected - said: "I received no financial advantages nor wanted to allow other people to to do so to the detriment of VW."
The latest twist in the saga comes as the authorities begin an investigation into original allegations sparked by the shock resignation last month of Helmuth Schuster, personnel chief at VW's Czech arm, Skoda.
He left the company amid allegations that he took bribes from potential suppliers and claims in magazine reports that he used front companies to secure lucrative VW contracts abroad.
VW last week called in auditor KPMG to review the matter, but has declined to make a statement on "internal matters".
Since Schuster's departure, VW has been rocked by a series of further allegations, which appear to have caused chairman Bernd Pischetsrieder to postpone a decision on construction of a new factory in India and an assembly plant in Angola.
http://motortrend.com/features/news/112_news69/
