WE'RE NOT SUPPOSED TO OFFER THE LOW-WAGE WORKFORCE FOR FOREIGN COMPANIES

http://www.washingtonmonthly.com/archives/individual/2011_04/028895.php

April 11, 2011

Ikea's labor dispute in Southern Virginia should be a bigger story.

When home furnishing giant Ikea selected this fraying blue-collar city to build its first U.S. factory, residents couldn't believe their good fortune.

Beloved by consumers worldwide for its stylish and affordable furniture, the Swedish firm had also constructed a reputation as a good employer and solid corporate citizen. State and local officials offered $12 million in incentives. Residents thrilled at the prospect of a respected foreign company bringing jobs to this former textile region after watching so many flee overseas.

But three years after the massive facility opened here, excitement has waned. Ikea is the target of racial discrimination complaints, a heated union-organizing battle and turnover from disgruntled employees.

It's quite an ordeal. Workers are forced to work overtime, often with little notice, and those who don't go along face disciplinary action. Workers have been ordered to attend meetings at which management "discourages" them from forming a union, and Ikea has hired a law firm known for its anti-union efforts.

This is apparently front-page news in Sweden, where Ikea is a celebrated and iconic brand, and where the company is known for progressive labor practices. Indeed, most of the Ikea labor force in Sweden is already unionized.
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