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Business InsiderNov 07, 2021
IKEA Will Pay $6M in Reparations for Labor Exploitation
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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.
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.
The Spin
Narrative A
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.
Narrative B
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.
