IKEA will pay 6 million euros to German prisoners: here’s why

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Global furniture retailer IKEA pledged to donate €6 million (₹53 crore) to a government fund to compensate victims of forced labor during Germanycommunist era.

The move comes after it was revealed that political and criminal prisoners were forced to assemble folding furniture for IKEA during the Cold War.

The news first appeared in Swedish and German media more than a decade ago, prompting IKEA to launch an independent investigation into the allegations.

Forced labor

An investigation by Ernst & Young (EY) found that prisoners were making furniture for IKEA as far back as the 1970s and 1980s.

The report also found that IKEA officials were likely aware of the use of political prisoners to support labor.

At the time, East Germany was under the control of the Soviet Union and created a repressive communist state called the German Democratic Republic (GDR).

Contribution to the fund to help those in need

IKEA Germany has pledged to voluntarily pay 6 million euros to a new government fund set up to compensate victims of the East German dictatorship.

This commitment comes after years of negotiations between IKEA Germany and the Union of Associations for Victims of the Communist Dictatorship (UOGK).

The payment is seen as an important step towards acknowledging and redressing past injustices.

Regret and willingness to support victims

Walter Kadner, CEO and Chief Sustainability Officer of IKEA Germany, expressed deep regret over the company’s involvement in forced prison labor.

In a statement for CNNHe said: “We deeply regret that products for IKEA were also produced by political prisoners in the GDR.”

Kadner also added that following this revelation, IKEA has committed to clarifying the situation and supporting the victims.

IKEA payment called ‘revolutionary’

IKEA’s payment is seen as a landmark step by victim advocacy groups.

Dieter Dabrowski, chairman of UOGK, called it “groundbreaking.” He hoped that other companies that benefited from forced prison labor in communist Germany would follow IKEA’s example.

Eveline Zupke, special representative for victims of the GDR in the German parliament, also praised IKEA’s pledge to support the fund to help victims.