November 3rd 2024.
The well-known furniture brand, IKEA, has made a significant decision to pay €6 million in support of a government fund that aims to compensate victims of forced labor during Germany's communist regime. This move is seen as a powerful push for other companies to also take responsibility for their involvement in such atrocities.
During the Cold War era in Germany, political and criminal prisoners were forced to assemble furniture for IKEA. This shocking revelation was brought to light over a decade ago through Swedish and German media reports, leading to the company commissioning an independent investigation. The auditors from Ernst & Young found that as recent as the 1970s and 1980s, prisoners were being used to produce furniture for the global giant in the home furnishings industry. The report also revealed that IKEA representatives were likely aware of this exploitation of political prisoners.
The former East Germany, also known as the German Democratic Republic (GDR), was under the control of the Soviet Union from 1949 to 1990. This communist state was notorious for forcing tens of thousands of prisoners into factory work, making it a prime location for cheap labor that many Western companies took advantage of. Most of these prisoners were incarcerated for simply opposing the one-party communist state, which was brutally suppressed by the feared Stasi secret police. The Stasi was known for its extensive surveillance and control over people's lives.
In light of these atrocities, IKEA Germany has released a statement this week, announcing their voluntary contribution of €6 million towards the newly established government fund that aims to provide compensation to victims of the East German dictatorship. This decision comes after years of campaigning by victim groups, leading to the ruling coalition government proposing the creation of the hardship fund in 2021. The German parliament is expected to approve this proposal in the coming weeks.
The statement from IKEA Germany further explains that the payment is the result of ongoing discussions between the company and the Union of Victims' Associations of Communist Dictatorship, an organization dedicated to seeking justice for those wrongly convicted during the communist regime. In a statement to CNN, Walter Kadner, CEO and Chief Sustainability Officer at IKEA Germany, expressed their regret for being involved in the use of political prisoners in the GDR. He also mentioned that the company has been working to address this issue since it came to light.
The reaction to IKEA's decision has been positive, with victim advocacy organizations welcoming this move. Dieter Dombrowski, the chairman of UOGK, described it as groundbreaking. He also mentioned that IKEA has accepted their invitation to talk after the news of their involvement in forced prison labor came to light. Together, they have taken steps towards transparency and have met with those affected on equal footing. Dombrowski hopes that other companies will follow IKEA's example.
According to UOGK, IKEA is just one of the many companies that benefitted from forced prison labor in communist Germany. Former UOKG chairman Rainer Wagner had warned about this in 2012, stating that IKEA is just the tip of the iceberg. He called for companies to compensate former prisoners who still suffer from the psychological impact of their incarceration and forced labor. Evelyn Zupke, the special representative for GDR victims in the German parliament, sees IKEA's pledge to support the hardship fund as a responsible approach to acknowledging and addressing their involvement in such dark chapters of history. She believes that while they cannot undo the suffering of prisoners in GDR's prisons, they can show them respect and support them today.
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