The Swedish furniture company Ikea has agreed to pay 6 million euros to former political and other prisoners in East Germany who were forced to manufacture furniture for the company between 1960 and 1990. This decision follows an investigation from 2012 that revealed at least 66 East German companies with 117 factories had ties to Ikea and that political prisoners worked in these facilities as well as in some prisons.
Ikea declares that the payment will voluntarily flow into a compensation fund established by the German government. "We deeply regret what has happened. Since it became known that political prisoners in the GDR also produced for Ikea, we have been continuously working to resolve the matter," said Walter Kadnar, CEO of Ikea Germany.
The German Parliamentary Representative for DDR Victims, Evelyn Zupke, welcomed the company's decision: "Ikea's contribution to the hardship fund is a sign of responsibly engaging with the dark chapters of the company's history. We cannot undo the suffering of the prisoners, but we can pay them respect today and support them.
The compensation payment is part of a comprehensive plan by the federal government, which has established a fund to compensate victims of the GDR dictatorship. In addition to Ikea's contribution, the state itself will provide 1 million euros. Critics, however, argue that some of the proposed payments, such as one-time amounts of 1,500 euros for people from border regions, are too low.
Ikea had already commissioned an independent investigation following media revelations. The report confirmed that the use of forced laborers was a small part of the widespread practice in the GDR. Nonetheless, the company decided in 2012 to provide financial compensation in collaboration with the victims' association UOKG.
We have given our word to those affected that we will support them. Therefore, we welcome the introduction of the hardship fund and are pleased to be able to keep our promise," emphasized Kadnar.
Dieter Dombrowski, chairman of the UOKG, described Ikea's decision as "groundbreaking" and expressed hope that other companies would follow this example. "Acknowledging and supporting the victims is an important step towards coming to terms with the past and promoting justice," he said.
Despite the progress in addressing its past, Ikea remains under scrutiny, particularly regarding the sourcing of materials from countries like Russia and Belarus, which presents new challenges for the company.
