Final Statement notification of BWI et al. vs Inter IKEA BV.

The Dutch NCP has published the Final Statement of the notification of BWI (Building and Wood Workers International), the International Association of Machinists and Aerospace Workers of North America (IAMAW) and Facket För Skogs-, Trä och Grafisk Branch (GS Facket) regarding an alleged violation of the OECD Guidelines for Multinational Enterprises by Inter IKEA Holding B.V. 

The notification regarded alleged violations of the chapter Employment and Industrial Relations (Chapter V) of the OECD Guidelines. According to the notifying party Inter IKEA had neglected to inform and consult the trade union in time regarding the closure of an IKEA production location in the USA (subsidiary of Inter IKEA Holding B.V., Netherlands). Inter IKEA also, allegedly, had neglected meaningful engagement with regard to the renewal of the International Framework Agreement.

The NCP declared on 21 October 2021 in its Initial Assessment that the notification merited further consideration and offered its good offices to both parties. Following the acceptance of the good offices a dialogue has taken place with the additional participation of the subsidiary IKEA Industry AB. The dialogue was finalized with an agreement. Both parties agreed to keep the content confidential. As the notification was directed at the parent entity, but it was not a signatory to the agreement, the NCP recommended to both corporate entities to draw their attention to relevant paragraphs  of the OECD Guidelines, e.g. the responsibility to meaningfully and timely involve stakeholders in the case of major business decisions, such as a closure, and the responsibility of each corporate entity within a group to ensure the entire group acts in line with the Guidelines.

In line with its procedure, the Dutch NCP will conduct a Follow-Up with both parties one year after the publication of the Final Statement, to evaluate what happened with regard to the implementation of the agreement and recommendations.