According to the GMB Union, Ikea has declined to pay the Real Living Wage (RLW) but wishes to retain its reputation as a living wage employer.
Featuring a plaque in its reception, the home furnishings firm is listed on the Living Wage Foundation website.
However, Ikea flatly declines to pay workers for the 20p/hr salary rise that the Living Wage Foundation (LWF) declared in November 2020.
Ikea has confirmed that it will not reach this deadline, and it has demanded the LWF foundation’s accreditation be “paused.”
Despite this, the Swedish organisation continues to display a minimum wage employer plaque in all of its locations.
When GMB officials demanded that the plaque be replaced, they were informed by Ikea executives that it must remain.
The union has also written to the Living Wage Foundation to alert it of the violation and voice its reservations about the foundation staying on its website while also encouraging IKEA to display the qualification plaque in their workplace.
As of today, Ikea UK reported financial statements showing gross revenue of £1.9 billion for the year ended August 31, 2020, with internet sales rising 31% because of the Covid pandemic.
David Shamma, GMB regional organiser said: “Ikea took in almost £2 billion in sales last year, yet refuses to pay the workers who prop up its empire a paltry 20 extra pence an hour.
“This company masquerades as an ethical business, but is clearly putting profits before its loyal workforce.
“It’s a repugnant way to operate a business – but to then go crying to the Living Wage Foundation that they still want to keep the badge whilst flouting the rules is childlike at best, utterly cynical at worst.
“Ikea needs to be honest about what kind of employer it is and either pay workers what they deserve or take the flak for being a charlatan and a cheapskate.
“Meanwhile the LWF needs to take action or risk undermining its integrity and other companies accredited who stick to the rules.”