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Ikea says product shortages will last well into the summer of 2022

Ikea sees supply-chain shortages stretching into mid-2022

Furniture firm IKEA will pay 70M kroner (about $6M) as reparations to political prisoners of the former German Democratic Republic, or East Germany, whom it used as forced labor in the 1970s and 1980s. Ikea's exploitation was documented in 2012 by the SVT television network.

Le Monde.fr

Agenzia Nova

The Swedish company has handed over a declaration of intent in this regard to Evelyn Zupke, the German government commissioner handling affairs related to injustices in former East Germany. The German parliament will soon vote on the establishment of a hardship fund.

SVT showed that IKEA sourced from furniture makers who employed prisoners and the Swedish firm's top management reportedly knew about it. Its founder, Ingvar Kamprad, had claimed that only one supplier was involved. Often, the prisoner-made goods were exchanged for West German hard currency.

The Times

An independent probe also confirmed in 2012 that political prisoners made furniture for IKEA during the Cold War. Ikea Germany CEO Walter Kadnar on Tuesday said, "we deeply regret that this happened." In 2021, Germany's ruling coalition proposed a national fund for the survivors.

Fortune Europe

CTVNews

Zupke said IKEA's award is "an expression of a conscientious approach" to affairs of the "darker chapters" of its history. Dieter Dombrowski, head of a former political prisoners' group, hoped other firms would emulate Ikea's "groundbreaking" decision.

Dw.Com

European Interest

IKEA and German budget retailer Aldi Nord were among the other Western companies that reportedly exploited the prisoners — 15K-30K a year by some estimates — jailed by East Germany's notorious Stasi secret police for crimes of opposing the one-party communist state.

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This is a commendable step in IKEA acknowledging and addressing its historical involvement in a horrible situation. IKEA  is now providing compensation for affected individuals and funding additional research on forced labor in East Germany. Ikea should be for its transparency and for pioneering an effort to recognize this shameful chapter of history, and other companies must follow suit.

BBC News

BBC News #

Ikea 'deeply regrets' use of forced labour

IKEA may be doing the right thing for East German prisoners but its track record tells another story. From Belarus to Poland, IKEA's labor practices frequently clash with its public commitment to workers' rights. Though reparations are a step forward, IKEA's treatment of labor continues to fall far short of its professed values and it must do better moving forward.

Workers' Liberty

Workers' Liberty #

The dark side of Ikea

There's a 50% chance the global labor share of gross domestic product will be at least 50.7% in 2030, according to the Metaculus prediction community.

Metaculus2

What will the global labor share of gross domestic product be in 2030?

Matthias Balk/Contributor/picture alliance via Getty Images

IKEA Will Pay $6M in Reparations for Labor Exploitation

Prisons and prisoners

Freedom & human rights

Germany

This is a commendable step in IKEA acknowledging and addressing its historical involvement in a horrible situation. IKEA  is now providing compensation for affected individuals and funding additional research on forced labor in East Germany. Ikea should be praised for its transparency and for pioneering an effort to recognize this shameful chapter of history, and other companies must follow suit.

IKEA Will Pay $6M in Reparations for Labor Exploitation

IKEA Will Pay $6M in Reparations for Labor Exploitation

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IKEA Will Pay $6M in Reparations for Labor Exploitation

IKEA Will Pay $6M in Reparations for Labor Exploitation

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