Ikea's U.S. factory churns out unhappy workers

[onehandle]

Source: LA Times

Reporting from Danville, Va.— 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. Workers complain of eliminated raises, a frenzied pace and mandatory overtime. Several said it's common to find out on Friday evening that they'll have to pull a weekend shift, with disciplinary action for those who can't or don't show up.

snip...

Laborers in Swedwood plants in Sweden produce bookcases and tables similar to those manufactured in Danville. The big difference is that the Europeans enjoy a minimum wage of about $19 an hour and a government-mandated five weeks of paid vacation. Full-time employees in Danville start at $8 an hour with 12 vacation days — eight of them on dates determined by the company.

What's more, as many as one-third of the workers at the Danville plant have been drawn from local temporary-staffing agencies. These workers receive even lower wages and no benefits, employees said.

Read more: http://www.latimes.com/business/la-fi-ikea-union-20110410,0,5341610.story

[TxVietVet]

1. They must believe the conservanazi bu$hit about US workers.

Under the conservanazis, workers are to be exploited. The Ikea bunch are showing how they can f*ck Americans and no one cares.

[Doremus]

2. Here's an article to print off and give to blue collar union bashers.

Perhaps the fact that Swedish workers producing the same product earn more than DOUBLE the wages here will penetrate their thick skulls....

perhaps.

[donquijoterocket]

24. I presume

That is not to mention the other bennies like Sweden's health care and other social safety net programs.I'm sure they'd argue that the Swedish national employees need the high pay to accommodate the tax structure in Sweden.

[Marie Marie]

3. When foreign companies are moving manufacturing to the US

because the labor rates are cheaper, we are officially on our way to third world status. Sad!!

[PatSeg]

6. That's what occurred to me

Countries exporting jobs to the U.S. because of cheaper wages. "Send those jobs to America, they'll do anything for a buck these days."

[robinlynne]

37. We are not on our way. We're very much third world. Except much of the third world is

moving in the opposite direction.

[pepperbear]

4. Funny, sounds like the same reason why our manufacturing jobs go to 3rd world countries...

...cheaper labor and less regulation. Our we slouching towards that fate?

That is actually a little bit worrisome.

[provis99]

5. here's the key problem:

from the article: "...The plant has been run mostly by American managers...". American managers have been the ones fucking over American workers; if the management team was 100% Swedish, these workers would be better treated, and the American branch would adhere to the standards demanded in Sweden. The Swedish managers they quoted sounded upset with the way the American management is behaving.

[Rage for Order]

8. Even American managers have to go through corporate HR

And corporate HR's policies are not easy to bypass. If they set a job at a certain payscale, then that is the payscale, period. It seems like a case of good cop, bad cop. "If only we could get the management in Sweden to see what they are doing to us in America!" You think the management in Sweden can't read financial statements and reports that show the average hourly cost of a worker in the US is drastically lower than a worker in Sweden? These people aren't stupid, just conniving.

[No Elephants]

30. Excellent anaysis and insight.

[Dappleganger]

21. Sounds like the Americans have been set up to take the blame...

for IKEA's own corporate greed.

[LizzyLace]

7. RE:

1. Even Sweden is going more conservative and corporate these days.
2. A lot of European corporations view places like Danville as third-world areas to be exploited. They're not there to help "renew" America or however the local politicians spin it.
3. Ikea is able to sell cheap furniture because it exploits the environment and labor around the world.

[snagglepuss]

10. Bang on.

Welcome to DU. :hi:

[Starry Messenger]

12. +1000

[Brigid]

9. This sounds almost exactly like my workplace.

It's eerie -- and frustrating that this is the way the American workplace is these days. :grr:

[Karmadillo]

11. As long as we're willing to take it, our Corporate Masters, local & global, will

be more than willing to treat us like crap.

[Starry Messenger]

13. This is one reason why the "mix" of socialism and capitalism doesn't work.

Someone is getting exploited to pay for the "socialism". This time it is us.

[Hannah Bell]

14. +100

[No Elephants]

31. Beause Ikea's owners making a little less profit would be criminal.

:sarcasm:

[Raine]

15. Now America has become a third world country

for other countries to employ cheap labor. It's come full circle.

[WhiteTara]

16. I won't be shopping there again.

Too bad, I love their candles.

[Dappleganger]

18. IKEA is essentially the Walmart of Sweden (now moved into the US).

Their stuff has become cheaper and cheaper, however (in build quality as well as price). I have some wonderful, older IKEA pieces but refuse to buy anything new from there. All of the older pieces we found from craigslist.

[Dappleganger]

17. Danville has been a depressed area for YEARS, but they still have memories of unions past...

the people in that area KNOW how a corporation should be treating them and they are NOT getting it!

[davidthegnome]

19. As despicable as this is

I wish I had a job, even that job, to be unhappy at. It beats being unhappy and unemployed.

[Dappleganger]

20. That's what they're hoping, for a dream employee who enjoys being screwed

for less and less salary and benefits each year.

[No Elephants]

29. The plutonomy is successful.

[Thunderstruck]

22. Third World America

We're being turned into a low-wage labor pool.

[Roland99]

23. I've bought my last item from IKEA. Closed out my IKEA card, too.

[bullwinkle428]

25. I guess some European companies view America as another stop

along the way in the race to the bottom.

[xchrom]

26. Perfect example of what's wrong in our country. Nt

[guitar man]

27. Let me guess

When they wanted to locate the factory there the mayor and other local politicians were all trumpeting what a great goddamn "opportunity" this sweat shop was going to be for the people of Danville all over the papers and TV news.

What you didn't get to see was those same slimy politicians telling Ikea's top execs "psst, bring it here, it'll be fine, its a *right to work* state, we've got the unions beaten down here and the workers, shit they'll work for next to nothing! Thanks for the 30 pieces of silver!"

:grr: :grr: :grr:

[upi402]

28. USA: cheap exploitable labor, access to market w/o shipping costs

We need an opposition party to corporatism. Take it back!

[No Elephants]

32. Even buying stuff made in the USA is no guaranty.

[Johonny]

34. There is no pure company

People from time to time post on DU are there any "American" companies that make things here. If you list something you like that is made here, someone else will find something wrong with the company. It's sort of pointless. Yes MADE IN AMERICA is no guarantee that the company is a lot of things, but at least it is made here. There is no pure perfect company, if there were may be I'd vote Republican because companies could possibly worth the huge public trust Republicans place on them :)

[DFab420]

33. What Europeans enjoy a minimum wage of 19$??

http://en.wikipedia.org/wiki/List_of_sovereign_states_in_Europe_by_minimum_wage

All Europeans? Is Europe a country now like Africa?

[onehandle]

35. 'A minimum wage OF about $19 an hour.' Sweden doesn't have a set minimum wage.

Wages in Sweden are set with Collective Bargaining. 80% of the work force is unionized.

[DFab420]

36. Which is awesome

and also takes more creditability away from this article about the "third worlding" of America