After an internal investigation, IKEA stores in Malaysia have severed their connection with security services providers due to the violation of the Swedish company’s policies.
Many security guards in IKEA, according to the investigation by the store, had paid money to secure their positions in the company.
The investigation was conducted by Inter Ikea, which oversees the brand’s franchise stores after an activist disclosed that employees were paying money that can go up to $1,000 to secure their positions as security guards.
It has been proven true that many of the security guards who work at IKEA stores in Malaysia have paid recruiting fees, which is against the company’s code of conduct, according to Ikano Retail, which manages the IKEA shops in Malaysia, Singapore, Thailand, the Philippines, and Mexico.
There is a widespread problem where brokers and recruiters are charging money from workers who are looking for employment and this does not only happen in Malaysia but also in other developing countries. As a result, employees have taken out loans to pay the expenses.
The results coincide with big Western brands coming under increased scrutiny for labor problems in their global operations. Workers should not be paid any fees or other associated expenditures for their recruitment, according to the International Labor Organization of UN.
According to Ikano, the concerns were unable to be resolved hence the decision to terminate the relationship after weeks of negotiation with them.
Ikano also adds that they will recruit employees directly rather than lean on subcontractors.
