• 01-SEP-2017

Our view on social conditions in the IKEA Transport Supply Chain

IKEA warehouse

IKEA believes in good and fair working conditions for all drivers transporting IKEA products. To deeper embed sustainability into the supply chain, IKEA Transport has introduced minimum standards for transport sub-suppliers through a Sub-Contracting Chain Management Programme. This week, IKEA Transport took the next step by arranging a business breakfast in Brussels to talk about social conditions in the IKEA Transport Supply Chain.

The transport industry, mainly in the EU, has gone through structural changes over the last 10 years. Competition has increased and sub-contracting and complex cross-border chains are common. There is a trend towards outsourcing transport to Eastern European sub-carriers. EU legislation applying to these areas is not always clear.

IKEA started to work with its Supplier Code of Conduct, IWAY, in Transport in 2005. IKEA Transport is constantly trying to improve the situation to secure good and fair working conditions for drivers transporting IKEA goods.

Social conditions in the IKEA Transport Supply Chain

IKEA believes that every driver has the right to enjoy good and fair working conditions. At the same time, we recognize that there are challenges in the transport industry, and while IKEA Transport cannot solve them by their own, it is our strong belief that we can positively influence the working conditions with the transportation industry.

IKEA Transport Sub-Contracting Chain Management Programme

The IKEA IWAY process commits all IKEA Transport suppliers, with whom we have a frame agreement, to comply with clear requirements on working and social conditions, health & safety and the environment.

On September 1, 2017, IKEA Transport, took an important step in embedding sustainability deeper into its supply chain, by introducing minimum standards for transport sub-suppliers engaged in outsourced transportation through a new Sub-Contracting Chain Management Programme (SCCM).

Business breakfast on sustainability efforts in the IKEA supply chain

Creating better working conditions in the transport industry is a joint effort. IKEA Transport has now taken the initiative by arranging a business breakfast in Brussels on Tuesday, October 31, 2017, to talk about our sustainability efforts with regard to social conditions in the IKEA transport Supply Chain.

The goal of this roundtable was to draw on the collective experience and knowledge of participants to address opportunities in the EU transportation industry.

The discussion at this roundtable was intended to identify good initiatives and best practices as well as to initiate a dialogue.

Participants included stakeholders from other companies, the transportation industry, the EU political spectrum, transport unions and NGOs.

Even though the drivers who transport the IKEA goods are not employed by IKEA Transport it is very important for IKEA Transport that they enjoy good and fair working conditions. This is our foundation that applies to all of the more than 600 000 people who work in IKEA's supply chain worldwide.

The IKEA Transport Sub-Contracting Chain Management Programme (SCCM), involves minimum requirements based on the existing IWAY standard and compliance with EU transport legislation for sub-contracted transport of IKEA goods. The SCCM programme started in September 2017, with a number of European transport service providers who outsource large proportions of IKEA international transport within the European Union. It is the plan to launch the SCCM programme with the rest of our European transport service providers during 2018.