Ikea Germany is making EUR 6 million available for a new welfare fund to be set up as voluntary compensation for victims of the former communist regime in East Germany. In prisons at the time, these prisoners were forced to make parts for the furniture company. The fund, set up in cooperation with the German Bundestag, is an initiative to provide support to this group of former political prisoners, European Interest reports.
According to Evelyn Zupke, Bundestag special representative for victims of the former German Democratic Republic (GDR), Ikea is thus showing "a conscientious approach" to "the darker chapters in the company's history." Although the consequences for the prisoners cannot be undone, Zupke stressed that Ikea is showing them respect in this way and can support them in specific needs. He also indicated that Ikea was not legally obliged to contribute to the fund.
During the Cold War, several Western companies made production agreements with the GDR, including Ikea. In some cases, prisoners were forced to carry out this production. In 2011-2012, evidence came to light that Ikea was also involved in these practices. An investigation by Ernst & Young, commissioned by Ikea, confirmed that some executives within Ikea were aware of the involvement of political prisoners in production.
Walter Kadnar, CEO of Ikea Germany, said the company took action "as soon as it became aware" to address the issue. Given its progressive code of conduct for suppliers, Kadnar said it was natural for Ikea to want to take steps to limit previous human rights or environmental violations. "We promised those affected that we would support them," Kadnar said, confirming that the welfare fund was a means of fulfilling that promise.
Dieter Dombrowski, president of the UOKG (the organisation representing the interests of victims of the communist regime), praised Ikea's move as "groundbreaking" and hopes other companies will follow suit. Dombrowski, himself a former political prisoner in the GDR and an active advocate on forced labour issues, pointed out that prisoners at the time worked six days a week in shifts and received only 18 to 25 East German marks per week for this. According to Dombrowski, Western companies at the time benefited from profit margins "higher than they are in China today."
Source: European Interest
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