6 million to German prison labor compensation fund by furniture giant IKEA
A recent report revealed that during Germany’s communist dictatorship, flatpack furniture company IKEA made use of forced prison labor. In response to those findings, CNN reports the furniture giant has agreed to contribute 6 million euros ($6.5 million) to a government fund compensating survivors.
Prison labor behind the iron curtain
Between 1949 to 1990 the Soviet Union occupied East Germany under a rigid communist government known as the German Democratic Republic, or GDR. Opposition to the GDR of any kind was stamped out and tens of thousands of people landed in prison. Many Western companies took advantage of the forced labor of GDR prisoners. After the media began uncovering evidence that IKEA might be one of them, the company commissioned its own investigation. That investigation found that as recently as the 1980s prisoners were producing furniture for IKEA.
Walter Kadner, CEO and Chief Sustainability Officer at IKEA Germany, said:
“We deeply regret that products for IKEA were also produced by political prisoners in the GDR…We have given our word to those affected that we will participate in providing support.”
In a recent statement, IKEA Germany announced it would be voluntarily putting 6 million euros towards a new government fund. The fund promises to provide compensation to victims of the East German dictatorship.