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Ikea pushes back against Belarus prison labour allegations

Furniture giant Ikea on Thursday defended its procedures to verify suppliers following an investigation by media outlet Disclose showed links between several of its former suppliers in Belarus and forced prison labour.

Ikea pushes back against Belarus prison labour allegations
Photo: Lise Åserud/NTB/TT/Scanpix

The Sweden-based company, which cut ties with its Belarusian suppliers in March following Russia’s invasion of Ukraine, admitted it could not completely rule out the links to prison labour.

“There is, unfortunately, no system in the world that’s so strong that it can guarantee zero risk of misconduct,” the company told AFP.

Ikea said it does “not accept any forced, bonded, and prison labour” and that suppliers must comply with standards, including International Labour Organization conventions.

“To verify that IKEA suppliers are complying with these requirements, we have a well-established process,” the company said, adding it included assessments at suppliers, compliance verification and follow-ups on action plans for “all non-conformities”.

According to Disclose’s investigation, several Belarusian companies that were until recently on Ikea’s list of suppliers have collaborated with a total of at least five prisons and penal colonies.

The Belarusian subcontractors, including Mogotex and Ivatsevichdrev, had relied on prison labour from the prisons IK-2, IK-4, IK-9, IK-15 and Rypp5, according to Disclose’s investigation.

“These are forced labour camps that are particularly brutal, known for practising torture as well as food and healthcare deprivation,” the French media outlet noted.

Ikea announced in early March that it was suspending its activities in Russia and Belarus, and later announced it was withdrawing from both countries.

In Belarus, the furniture company had no shops, but estimated that its subcontractors employed some 10,000 people, compared to 15,000 direct Ikea employees and 50,000 employed by subcontractors in Russia.

The Swedish-based multinational, which is mainly controlled by holding companies registered in the Netherlands, has already been seen another prison labour scandal.

In 2012, following an internal investigation, Ikea admitted that some of its suppliers had used forced labour of political prisoners in East Germany in the 1970s and 1980s.

The internal audit was initiated following revelations by a Swedish investigative programme.

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MONEY

How much could you get for your old Ikea furniture?

That's a question many may be asking themselves, after vintage Ikea pieces were sold at an auction for hundreds of thousands of kronor.

How much could you get for your old Ikea furniture?

At a chic Stockholm auction house, 122 carefully-curated items with unusual provenance went under the hammer on Monday evening: vintage furnishings from flatpack furniture retailer Ikea were sold for a total of 37,000 euros ($40,000).

Collectors’ interest has blossomed over the years for Ikea pieces that have become design icons, as the Swedish company – normally known for more budget-friendly piece – celebrates its 80th anniversary this year.

Inside the showrooms at Stockholm’s Auktionsverk, the world’s oldest auction house, a tubular sofa, a lacquered chest of drawers and even a pair of “space age” lamps take pride of place.

The pieces, which date from the 1950s to the 1990s, are all marked with the stamp of the famous Swedish brand known around the world for its DIY furniture.

Ikea is celebrating its 80th anniversary this year. Photo: Viken Kantarci/AFP

“I’ve been working in the auction industry for almost 30 years, and if somebody when I started would have said that ‘One day you will host an Ikea auction in a very nice showroom’, I would have said ‘No, no, that’s absolutely that’s not possible’,” laughed Li Pamp, head of the auction house.

“Ikea has in many ways been controversial,” she noted, citing the company’s history of copying and following trends and “criticised for environmental and sustainability reasons.”

“But there are also some items that stand out,” Pamp said.

“Many very famous designers have been at some point in their career involved in Ikea. And for many, Ikea was the starting point of their career.”

Collector interest is growing in archival pieces from the Swedish flat-pack giant. Photo: Viken Kantarci/AFP

Tableware, furniture, mirrors, lights: more than 100 pieces curated from private homes were sold at Monday’s auction. A red sofa sold in Ikea stores in 1972 for the equivalent of 120 euros went under the hammer for 2,000 euros.

Earlier this year, an Ikea “Cavelli” armchair made headlines when it sold for 18,000 euros at another Stockholm auction – a fortune compared to the around 27 euros it cost when it first went on sale in 1958.

“As I remember it as a young child, if you wanted some cheap furniture you’d go to Ikea,” said Thomas Raber, in his 60s, appearing elegant as he meandered through the showroom ahead of Monday’s auction.

“You put it together yourself, and then when you’d had it for a few years, you’d throw it away,” he recalled.

“And now 80 years later, it’s here and it’s being auctioned as a piece of art, an antique. I think that’s fascinating.”

‘Journey back in time’

For Anette Aly, a 78-year-old Swede who bought her first sofa at an Ikea store in 1963, “it’s a journey back in time”.

“I see the things I saw 40-50 years in the store!”

Some of Ikea’s old designs have become icons for the brand. Photo: Viken Kantarci/AFP

The emergence of a high-end vintage market hasn’t escaped the retailer.

“It’s flattering. It’s confirmation that we’ve created the greatest brand in over 80 years,” raves Thea Mix Davidsson, collection curator at the Ikea Museum in the company’s hometown of Älmhult.

The high prices for the coveted pieces are “the only thing that bugs us a little bit. We are meant to design for everyone.”

Picking up on the trend for all things vintage, Ikea has launched a new collection with fresh takes on iconic Ikea designs, with the slogan “return to the future”.

With that market booming, Pamp said many people could literally be sitting on unknown treasures.

“It could be that people have valuable Ikea items at home without knowing it,” she said, urging them to give the auction house a call for an evaluation.

“We will of course help you!”

Article by AFP’s Viken Kantarci

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