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IKEA: Compliance and enforcement are two sides of the same coin

Paul Hodgson | March 20, 2017

The BBC recently ran a story exposing IKEA “and other large retailers” [whose names were not disclosed] as using cheap transport firms that flouted European rules; namely that drivers posted temporarily away from home should be guaranteed the host nation's minimum rates of pay and working conditions. Ironically, IKEA has a code of conduct, IWAY, that specifically requires adherence to all applicable laws and regulations for suppliers: “Workers at the IKEA supplier shall be employed according to applicable laws and regulations and there shall be a contract (offer or appointment letter) written accordingly.” A number of other items in the code are also being flouted, such as the national minimum wage requirement and keeping complete and accurate records of hours. What this exposes is that having a code of conduct is one thing, making sure that it is adhered to at every point of your supply chain is something else entirely. But that’s what compliance is all about.

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