IKEA outlets in Germany are facing widespread strikes, the Verdi trade union said on Thursday.
The walkouts on Friday are likely to affect over half of the Swedish furniture giant’s stores in the country, Verdi said.
“Retail generates billions in turnover every day, but virtually none of it trickles down to the staff, including at IKEA,” union official Silke Zimmer said.
The household goods retailer is thriving but nonetheless planning to cut jobs, introducing a radical savings programme instead of paying fair wages, Zimmer argued.
The union is currently negotiating with employers’ associations in the retail, wholesale and foreign trade industries. According to Verdi, the commerce sector employs around 5.2 million people in Germany, of whom 3.4 million work in retail.
Verdi is demanding a 7% pay rise amounting to at least €225 ($258) over a 12-month period. The collective bargaining talks began in April, and the union has already called two rounds of warning strikes in recent weeks.
IKEA is playing an influential role on the employers’ side in the talks, Verdi said.
IKEA opened its first shop in Germany in Munich in 1974. Germany is the Swedish company’s largest market in terms of revenue.