Here's a portion of an email I just received... I suppose America is cheap labor for Sweden, but $8 an hour? Really? For factory work? You would get at least that much starting out flipping burgers. Further, it doesn't sound as though they are treated with much respect, and are working in an environment that should be safer. Reading the petition comments, it sounds like many Americans are going to start boycotting them.
Yet other American owned corporations will happily exploit workers in China and other countries at less that $1 an hour... That's what big business believes it has to do to stay in business these days, and not just Sweden. I woulda thought it a good thing that some overseas operation comes in & gives my people a job. A job based on my countries employment rules and following all of the obligations that came with that. I'm sure Ikea had no part in setting the minimum wage. Thet are just doing what all businesses do IMHO. Would it be best not to have them employed at all or best to be employed under the conditions you present? I somehow don't picture Ikea as a sweat-shop. IMHO, at least they have a job they can start with and move up from, and more importantly can leave if they feel they're being ripped off. BTW, I own no Ikea (furniture or shares).
This thread is not an attack on Sweden, in case that's the reason you seem a bit defensive. As far as American companies that would use overseas sweatshops, it's not supported by the American public. It will result in bad press and boycotts. "Big business" isn't all one entity. I don't agree with your statement anyway, as it's way too general. Many big companies believe that treating employees good will attract talent, reduce turnover, and results in higher profits. We are all entitled to an opinion. For my perspective, Americans purchase a lot of IKEA products. We help to make them a profitable company. Yet, they are paying significantly lower wages, and providing less safe working conditions to American workers. As long as they can still fall within legal guidelines, they have the right to do this. I also have the right to decide where I will spend my money, and boycott IKEA if I don't appreciate their business tactics. In addition, the workers have the right to fight it, and try to get better conditions. I'm a bit confused by this statement. Yes, in the US we do have an absolute minimum wage. However, it's not a guideline for what most companies should pay employees, it's just they aren't allowed to pay under that. Obviously, IKEA is setting the wages they pay workers. Normally for a factory production job, it would be well above that, but it's probably easier to exploit workers when the unemployment rate is higher. I understand where you're coming from, and no, it probably wouldn't be better to have them unemployed. Going further, they also accepted the wage at the time of hiring. Even so, I still support their efforts to improve pay and working conditions. Btw, either do I.
Not at all, I'm not being defensive here, just trying to add to the debate is all. In fact I think most of your points are valid, just there are obviously more angles to the OP that should also be brought in to the debate if you wanted to discuss it seriously. Corporate business has ONE goal, make money. It must do that by law. It would be sued if it tried to gouge shareholder profits by paying money it didn't need to. In that, ALL corporate business is united. And the right to discuss your concerns on a public forum, agreed. And IKEA has the right to do what it wants, within the law too. My statement was meant to say your politicians made the rules, not IKEA themselves. See corporate goals above. That's what it boils down to in the end. Are we better off with or without them?
It just made me wonder. Your first sentence was to criticize American companies, and your second sentence was "That's what big business believes it has to do to stay in business these days, and not just Sweden." When really, this thread has little to do with Sweden (other than IKEA happens to be based there). But, okay. That wasn't my point. I had responded to your, "That's what big business believes it has to do to stay in business these days". By saying,: "Big business" isn't all one entity. I don't agree with your statement anyway, as it's way too general. Many big companies believe that treating employees good will attract talent, reduce turnover, and results in higher profits. So, I hadn't suggested that companies don't want to make money, That sounds familar, oh wait, I know why, I said it (basically) - "As long as they can still fall within legal guidelines, they have the right to do this." It was the part of my quote you cut off when responding. lol. The politicians are not telling IKEA they have to pay $8 an hour. As I had said, by law there is a minimum wage (I think it's $7.50) - they just can't go under that. That's a personal question, for some, better with, and some, better without. Then, there are the current workers there, that believe they can improve pay and working conditions. So, it doesn't sound like they are looking at it from those extremes.
Have you been to walmart lately? i don´t see any American public protesting against cheap Chinese product. It is funny Capitalism is good until it results that American workers don´t get a high wage. USA is becoming bankrupt, so start getting used to getting third world wages.
With Virginia being a "Right To Work" state the Company will not have to work to hard maintaining the status quo. Conservatives handily victimize workers by crusading under the banner of Anti-Unionism the workers themselves often are the principle supporters of in their endeavor. The height of Short-Sightedness taken advantage of by politicians and corporate executives, and repeated time in immorial. A more sophisticated public is the solution and the actual battle ground for workplace equity.
Rebecca: Interesting thread. I live in Virginia and remember when announcements were made and heralded about the Ikea factory opening there. It was 2008. At the time, the massive recession was taking off; it was the first Ikea factory in the US, and unemployment in Danville was quite high. Additionally major employers had left the Danville area leaving it in a desperate situation. I reviewed some history on the situation and found a variety of articles articulating all sorts of points (while I'm too lazy to cite them all here is one article describing the overall manufacturing climate and references Ikea: http://www.theatlantic.com/business...ppel-shell-on-our-obsession-with-cheap/22680/). Note that the article was written way before these current issues arose about the Danville factory) Business is indeed complex. Danville sits on the Southern most portion of Virginia, somewhat in the center and not far North from Greensboro/Winsten-Salem metro region in North Central North Carolina (I've spent some time there). Over the last 20-30 years that region lost lots and lots and lots of manufacturing jobs, specifically with regard to furniture and clothing/linen manufacturing. Long term, old line businesses and factories lost work to lower wage production, primarily in Asia. When Ikea opened its Danville factory it was widely acclaimed. It added jobs in a region that was suffering from progressive job loss. The factory wage rates were lower than those of lost jobs....but the overall perspective was that the factory was a plus: new jobs in an area that was suffering from significant job loss. BTW: I've liked Ikea--sort of nice looking furniture and nifty stores with relatively low prices. The furniture is anything but top quality. OTOH I had no idea about the underlying principles that have propelled Ikea to tremendous growth and its owner to tremendous wealth. Its a twist on the successful strategy that propelled Walmart to huge success: drive prices down. Ikea did it with an additional focus on style and atmosphere--> sort of layering some of the elements that work for Apple (with regard to style) while relentlessly driving costs down. I don't see easy solutions. The Ikea factory is a singular example. Its located in a region within a state that is primarily anti-union. There will be massive forces aligned against any efforts to protect workers rights in any form whatsoever...whether or not with unions. Meanwhile the top of the corporate chain of Ikea is tremendously successful with its ownership reflecting one of the wealthiest people in the world....while the workers in this factory see low wages and a very dangerous and problematic factory environment. I'd like to know if internal cash flow within that company could shift some of the funds that flow back to corporate back into the factory so that wages could rise and working conditions could improve. I'd like to see incentives created for the workers on top of that internal reworking of cash flow. It would be a monumental success if that all occurred without increasing costs for goods from that factory.
Do you understand the economy of Sweden, inflation and the cost of living there? Also laws of minimum wage, just before you go off on one in an embarrassing comparison. Why don't you compare the US, and the UK minimum wage while you're at it.
Isn't that what happens when you are on the road to bankruptcy? Everything goes downhill including wages and work conditions. You can't petition your way out of bankruptcy.
EarlPearl, I like your ideas. They should hire you as a negotiator. You always have such a well-balanced perspective. In regards to that article, even being a few years old, it could have been written today. "...What this means of course is that the masses who make those furnishings are treated pretty much the way other makers of low price goods are treated. It also means that environmental considerations take a far back seat to price. So we can trace to IKEA the by now familiar reports of environmental degradation and labor abuses..." Apparently, IKEA is just a more stylish version of Walmart.
The IKEA in Atlanta is amazing! There are unique items at every turn and I really enjoy the shopping atmosphere. I even have started to learn their directions for putting stuff together.. lol This Danville thing is sad but Virginia is a bit racist in parts and $8.00 per hour is awful if good workers don't get a pay increase soon after showing that they are good workers. hmmmm
Rebecca: I researched and read the LA Times stories on the situation and some follow ups by other media. Also I saw where Virginia gave the company a $12 million incentive package to take the location. While I recalled the news from 2008 about the news I'd forgotten the state paid(bribed/bought off) Ikea to get them to relocate there. I'm somewhat familiar with those government incentive programs to attract businesses/employers. Unfortunately there are a slew of stories about them from across the country wherein they didn't pay off. It just reads like a crappy situation. The factory is paying very low wages relative to Sweden, but frankly they have factories around the world. Like so many international companies they operate in an environment where the international companies have the leverage to create their goods at the lowest prices available and damn the consequences.....in the US in Danville and in 3rd world economies where labor is cheap and workers' rights are easily abused. OTOH....low cost labor translates into lower cost goods. That is the bottom line in an economic world. The conditions in this example equate the US to the third world....and its European headquarters nation stands out as the enlightened example of modernism. In that context its a commentary of sorts on the state of the US economy--> that high unemployment is pushing US working conditions to mirror the worst examples in the world rather than the best. Meanwhile the place is employing slightly more than 300 people, albeit at crappy wage rates. Two other points of note: 1. The factory is running 3 8 hr shifts/day. Hey its busy and its products are selling. Its all part of a vertical chain from manufacture to delivery to sales within Ikea. You can bet they are making money off the 2 products that factory manufactures. Those folks at Ikea can restructure funding in some way to pay higher wages/create a better work environment. 2. The LA Times stories cite a good bit of turnover. If the damn jobs were reasonable people would stay, especially in these times and in that part of the country where unemployment is high and wages and average earnings are low. Smells to me like the workers in that factory need some help. Since the state forked over $12 million to Ikea...the state should step in and help those workers who seem to be getting the shaft in this example. At least that is my opinion.
@ EarlPearl I had no idea that we paid them 12 million to build that factory, that's sickening. I don't think that would have been offered if they realized IKEA would be offering such substandard pay and poor working conditions. Can the state actually do anything about it? If they can, I would be in support of that. American consumers may also have a degree of influence, as I've read we are there second biggest market. I just wrote IKEA a nastygram. lol. (just in case it might help). On a side note, here's another interesting article about IKEA, it's on People's World, it's actually a series of three articles.
Rebecca: Far as I know these competition driven incentive programs that states and cities give to businesses to relocate come with no strings attached and rarely a penalty. My suggestion of the state hitting Ikea is probably and realistically a joke of an idea. I don't believe there are enforcement penalties. Additionally should the state stand up for its citizens the corporate world would probably paint it as some anti corporate bs and blackmail Virginia into being a pushover for all corporate demands. Its deeply unfortunate IMHO.
I'm sure the "Right to Work" (politicians) would not find the above IKEA reason for concern. Afterall by their policies they are contributing to the conditions that evolve. "Right to Work" is ok, the politics that sheppard its foundation though in those States derives the actual outcome for the above, at the expense of the working American.
Breeze: I agree with you on this. This Ikea situation sucks. I've tried to read all the stuff on it. I know the PeoplesWorld article comes from a workers/union perspective. But I like to strip down facts and as an experienced business person here is what I see: The factory makes exclusively 2 or 3 products (from what I read). Its a total controlled vertical chain from factory to store. That means Ikea controls every part of the process. Here is what is most telling. The factory is busy 3 8 hour shifts/day and has extensive overtime. That tells me they are making profits on that item.....and continuing to do so on a regular basis. You don't blast out production on that kind of basis unless its making you a lot of money. I hope to goodness those people are making time and a half or more on overtime. Sounds like they deserve it. Meanwhile work conditions must suck. It appears of the 300+ factory workers about 1/2 have been there for a reasonable period of time and half turn over a lot. I can't see turnover in a shit bad economy with a region with high unemployment unless work conditions just absolutely SUCK. People put up with a lot when they need the money. That speaks to how bad that place must be. The workers are being railroaded and threatened. Its pure bullying from the corporate giant and its brutal. This is exactly the place where unions balance the demand and supply of labor and management. This is why there is value in unions. It gets at the core treatment of human beings. I live in Virginia so it pisses me off that money went to Ikea. I'll join Rebecca in vocalizing a complaint to Ikea and raise it locally. Its a ripoff. The frigging citizens of the state are being abused by a business that Virginia gave money to. That is money that came from those citizens who are now being abused. Based on where they are located for all we know Ikea could be buying supplies and products for the local vendor from very nearby North Carolina vendors. Who is to say where they are spending their local money. The state gave this corporate giant money to beat the shit out of its citizens and probably move a more than healthy share of probably big profits back to Sweden and Switzerland where I believe the Ikea CEO/major stock holder lives. Bad move on our part.
If you write them from the contact on their website, keep a copy of it in word. I tried to compose a decent letter, and in return got a form letter. It began with, "Thank you for taking the time to contact us about working at IKEA." And, then went on with a glowing review of how wonderful it is to work for IKEA. It may not have been sent automatic, as I didn't receive it immediately after writing. I wouldn't be surprised if they looked at my complaints, then sent the form letter hoping I'll go away. It looks like they have a Twitter and Facebook account - I suppose that's another way to reach them.
Didn't think about twitter or Facebook. Commenting on a business FB fan page is useless. If you publish a complaint on the fan page the Ikea fanpage admin(s) will erase it ASAP. One could join or start a different FB page that highlights these abusive actions. It would be independent of Ikea. I don't follow that stuff, though I know in some cases interest groups of one ilk or another have gotten FB to take down FB pages that attack them. On the other hand tweeting at them is very effective. Frankly one can blast away in Twitter, create groups of like minded followers send out extraordinary messages, include short urls to links, etc. and if you are clever, prepared, smart, lucky, your blasts will go viral and create significant awareness. I'm part of a retweeting group on some issue(s) but they aren't on anything near this topic and those group(s) on their own right wouldn't be effective in this case. Likewise on twitter you can follow tweet at media sources and start blasting away at them. Hopefully they'll take note of your comments. I don't do full scale political tweeting at all and don't tweet at Pols, but I have tweeted at other hub tweeters on different issues and gotten their attention. Tweeting at them is a very effective tool at creating public awareness. Here is something else that is not only effective but gets at Ikea where it hits their pocket. Go to local Ikea Places Pages in Google Places (google maps) and publish a review that is deeply negative on Ikea while highlighting the situation (abusiveness) at the Danville factory. I think you have to publish through a gmail account. That means its potentially trackable back to you--unless of course your gmail account is pretty anonymous and/or you set up a new one. The review will sit on their places page. That is often where consumers go. Moreover the google algo for local could pick up the review from the Places Page and potentially highlight them in two different places that create even greater visibility: The review, or a snippet of the review could show on the first page of google.com search within the highlighted combo link to the Ikea store that includes both google.com info and maps.google.com info. If by algo the review goes up and the first couple of words highlight the abuse that gets enormous visibility. 2ndly the mobile version of how google.com shows info for a local business often takes the places page info. Again via algo the first words of the review that rips them for this behavior could show in the top part (above the fold) of the mobile web page within a highly visible section of the page real estate. Again that would highlight the travesty. The problem with either of these approaches is that from our perspective (that of the reviewer) there is no control whether that scathing review would flow to the top of the google pages. That is out of our control. The thing about the reviews within Google Places is that Ikea can't take them down. Ikea can write a response but they can't get them removed. That means they stay there....F.O.R.E.V.E.R LOL. Now if I write one/some re Virginia stores....and Ikea changes its approach to the workers at the Danville store I'd take down my complaints. Can't vouch for anyone else though.
I'm not that familiar with Google Places, but that sounds like a great idea. I just went there, it looks like it's pulling up individual stores. Here's a listing of all there stores in the US: info.ikea-usa(DOT)com/StoreLocator/StoreLocator.aspx We could write reviews for all of them!! EarlPearl, for a review - does something like this sound okay?