Versions :<1234567891011121314Live
Snapshot 14:Tue, Nov 5, 2024 2:32:47 PM GMT last edited by ArthursSeat22

IKEA Will Pay $6M in Reparations for Labor Exploitation

IKEA Will Pay $6M in Reparations for Labor Exploitation

Image copyright: Matthias Balk/Contributor/picture alliance via Getty Images

The Facts

  • 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.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.

  • 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 Spin

IKEAThis mayis bea doingcommendable thestep rightin thingIKEA foracknowledging Eastand Germanaddressing prisonersits buthistorical itsinvolvement trackin recorda tellshorrible another storysituation. FromIKEA Belarusis tonow Poland,providing IKEA'scompensation laborfor practicesaffected frequentlyindividuals clashand withfunding itsadditional publicresearch commitmenton toforced workers'labor rightsin East Germany. ThoughIkea reparationsshould arebe apraised stepfor forward,its IKEA'stransparency treatmentand offor laborpioneering continuesan effort to fallrecognize farthis shortshameful chapter of itshistory, professedand valuesother andcompanies it must dofollow better moving forwardsuit.

There'sIKEA amay 50%be chancedoing the globalright thing for East German prisoners but its track record tells another story. From Belarus to Poland, IKEA's labor sharepractices offrequently grossclash domesticwith productits willpublic becommitment atto leastworkers' 50rights.7% inThough 2030reparations are a step forward, accordingIKEA's treatment of labor continues to thefall Metaculusfar predictionshort communityof its professed values and it must do better moving forward.

Metaculus Prediction


Articles on this story

Sign Up for Our Free Newsletters
Sign Up for Our Free Newsletters

Sign Up!
Sign Up Now!