Ikea, which employed Stasi prisoners before the Berlin Wall fell, will compensate victims of East Germany

Ikea’s Acknowledgment of Forced Labor in East Germany

Ikea announced the payment of 70 million crowns (6 million euros) to the national fund for victims of the former East Germany. This move recognizes the furniture giant’s responsibility for utilizing forced labor by political prisoners in their East German suppliers’ factories during the 1970s and 1980s.

Revelation of Scandal and Initial Denial

The scandal came to light in 2012 after an investigation revealed Ikea’s sourcing from manufacturers employing prisoners in their factories. Despite initial denials by Ikea’s founder and claims of terminating contracts, evidence surfaced that iconic products were still being manufactured by prisoners, leading to a public outcry.

Confirmation of Wrongdoing and Commitment to Reparations

After investigations confirmed the use of political and criminal prisoners by Ikea’s suppliers, the company committed to making reparations to these workers. Ernst & Young’s findings substantiated the group’s knowledge of these practices at the time, prompting the initiation of compensatory measures.