Ikea agreed to pay millions to ex-prisoners who worked in German factories between 1960 and 1990.
The Swedish company Ernst & Young was the subject of an investigation in 2012, which examined thousands of documents and archival objects showing that Ikea used prisoners to make its furniture in communist East Germany.
It was what was then East Germany occupied Before the Soviet Union merged in 1990 to form modern-day Germany. Thousands of political prisoners were forced to work in East German factories, including Ikea.
“We are very sorry that this happened,” said Walter Kadnar, CEO of Ikea Germany a statement tuesday “Ever since it became known that Ikea products were also made by political prisoners in the GDR (former East Germany), Ikea has been working tirelessly to shed light on the issue.”
More than a decade ago, Ikea launched its own independent investigation into the use of forced labor following media reports. It found that 66 East German companies and 117 company-related factories did it between 1960 and 1990.
Some of the directors of that time were aware of the use of forced labor in the years 1978-1981, Financial Times notify
Ikea is not alone the subjectMany companies capitalized on East Germany as it was a hotbed of cheap labor under the communist regime.
Now the company is voluntarily paying €6 million to a government fund to compensate victims of forced labor under the East German dictatorship.
“We gave our word that we would help the victims. So we welcome the establishment of the hardship fund and we are happy to be able to keep our promise,” said Kadnar.
It has been directed by Ikea representatives luck To the official statement released by the German parliament seeking comment.
In the late 1990s, he was accused of using Ikea child labor to make his furniture—then a claim— investigate. It has since innovated its supply chain practices, including a hard attitude against child labor. The company said it has “the most advanced and recognized supplier codes of conduct in the world” since the turn of the century.
Ikea’s effort to compensate former East German prisoners is the first of its kind and has been welcomed by the affected communities.
“Ikea’s commitment to support the core of the difficulties is an expression of a responsible way of dealing with the dark chapters of the company’s history,” said Evelyn Zupke, special representative for GDR victims in the German Parliament.
“We cannot undo what the prisoners had to suffer in the prisons of the GDR, but today we can treat them with respect and help them.”
