IKEA announces wage increase after employee complaints

employee complaints

In 2017 IKEA restructured its 48 stores in the USA. This move created new job grades along the way. The company ended up with a position called as merchandising basics’. In the past, sales associates were the ones to assist shoppers and deliver jobs in the back end.

During the Swedish company’s restructuring endeavor the back end jobs ended up under these merchandising basics workers. The sales associates who used to heavily engaging in selling to customers got an increase and were no longer assigned back-end tasks.

It was only recently that IKEA’s US counterpart have decided to increase the wage of those in the merchandising basics’ post. Their pay will now be equal to those of the sales associates, Business Insider reports.

Business Insider got hold of this information through a post circulated online through IKEA Inside,’ which is the company’s intranet for its workforce. They also sought feedback from IKEA’s representatives who responded, that they’ve always yearned to improve the working situation of their employees. And that, they’ve always addressed concerns raised to their attention by their workforce.

The document also discloses that IKEA US will increase its current salary levels at 14 pay tiers. They aim to align their wages to the state’s standards, there will also be a few selected employees who will qualify to have their salary augmented. This development will be watched across the world, including amongst Shropshire furniture‌ ‌employees.

All of these changes will be effective as of January 1, 2019. Increases will be implemented on intervals starting on February 15 until April 2019. Business Insider, further reports that there were widespread allegation and perceptions among IKEA workers, that new employees are receiving way higher salaries compared to those with tenure.

These allegations were confirmed by eight IKEA workers, represented all four states covering IKEA’s operations, who maintain active employment with the company.  These employees shared that majority of the workforce sympathize with those handling merchandising basics’ jobs. They were considered the most overworked among all the job grades in the company and yet they are on the far end of the salary pay scale.

This pay disparity doesnt go unnoticed within the Swedish firm’s offices. It had actually caused quite a stir among coworkers, most likely among the active sellers and merchandising basics workers. One among the eight employees Business Insider got hold of was quoted to say, “seem to be the most disgruntled” referring those who fall under the merchandising basics’ category.

IKEA’s full statement to the entire brouhaha was – that they’ll continue to be involved with their workers through dialogues and will ways heed their feedback, after considerable review. IKEA started as a mail-order business. It was founded by Ingvar Kamprad in 1943. IKEA wasn’t originally a furniture business. Kamprad has been known to be the most frugal billionaire in the world. The company forayed into selling furniture in 1948. Since then the company’s name is synonymous with furniture.

The first IKEA store in the US began 30 years ago just outside of Philadelphia. It first started as a store selling Billy bookcases and Swedish meatballs. Stores outside Sweden include those in France, Italy, and the UK.

Among the other controversies which struck the Swedish furniture giant in the past was its founder’s alleged fascist past and Nazi involvement as a Sympathiser. A fact that his detractors never failed to bring to light.