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Julien Behal/PA Archive

Ikea is going to pay the living wage for all its Irish workers

The flat-pack furniture chain has committed to “meaningful” pay for staff.

IKEA WILL BRING in a living wage for its entire Irish staff from next year as part of plans to offer “meaningful” pay to all workers.

The Swedish flat-pack furniture chain, which operates a single Irish outlet at Ballymun in Dublin, will start setting pay cheques based on the cost of living for employees in both the Republic and the UK.

Ikea UK and Ireland HR manager Pernille Hagild said that as a “values-driven organisation” the chain believed in “providing a meaningful wage to our co-workers that supports the cost of living no matter where they live”.

“We are committed to paying the living wage to our co-workers in Ireland by April 2016,” she said.

Over coming months we will work together with the relevant organisations and authorities in Ireland to secure this in the right way in the Irish market.”

FL IKEA J Pat Carter J Pat Carter

It comes as the government weighs lifting the national minimum wage from €8.65 per hour after a likely recommendation from the new Low Pay Commission that the rate be increased 50c.

Business groups have complained that a rise will risk the economy’s “fragile” recovery, while unions say the proposed rise doesn’t go far enough. Ikea already pays above the minimum wage in Ireland with rates its hourly rates starting from €9.77.

The living wage

A consortium of unions and other campaigners have put the living wage for Ireland at €11.50 per hour, although it’s not yet known on what basis Ikea will calculate its rate.

However in the UK, where it became the first major retailer to commit to paying a living wage, it has said it would pay all 9,000 staff at least £7.85 (€11.28) per hour.

Ikea said the rate for London would be £9.15 (€13.14) per hour to cover the higher cost of living.

READ: An ‘inexplicable’ increase or far too little? Fur is flying over the minimum wage >

READ: An Irish girl wrote IKEA this perfect email about a dressing gown (and their response was A++) >

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64 Comments
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    Mute Fergal Mawe
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    Jul 20th 2015, 12:31 PM

    You have to be impressed by this! Well done IKEA

    863
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    Mute Caelum Bourke
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    Jul 20th 2015, 2:18 PM

    Never knew they paid so well already, puts dunnes, tesco and the like to shame

    346
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    Mute Tammy Ní Laoire
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    Jul 20th 2015, 12:29 PM

    Maith sibh, IKEA!

    613
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    Mute Antonov Merinov
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    Jul 20th 2015, 12:37 PM

    The way to go.
    A responsible and sympathetic company.

    472
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    Mute J
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    Jul 20th 2015, 3:55 PM

    Not sure IKEA is that responsible. After all why is all their furniture so cheap?

    20
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    Mute Toddimus Maximus
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    Jul 20th 2015, 12:30 PM

    It’s great to see it, this will be fantastic news to the staff employed here. Always give you hope when big business make a moral decision rather than a purely economic one

    435
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    Mute For Connolly
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    Jul 20th 2015, 12:39 PM

    Well, thats my decision made on where my money will be going for the new TV unit. Might even treat myself to some Köttbullar

    Nicely done IKEA!

    337
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    Mute Baz
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    Jul 20th 2015, 1:05 PM

    Following the old populist mantra as always jammin.

    30
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    Mute Baz
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    Jul 20th 2015, 1:08 PM

    How soon you forget that the shinners never wanted them here in the first place. A fool is easily swayed by a cheap TV stand. Good man Jammin

    http://www.sinnfein.ie/contents/3684

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    Mute Suzie Sunsine
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    Jul 20th 2015, 1:13 PM

    oh give it a rest please , there is always someone who will bring a political party into an article .

    153
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    Mute Baz
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    Jul 20th 2015, 1:35 PM

    There is nothing wrong with highlighting shinners objected to Ikea operating in Ireland. I’ve provided the link.

    It’s comical now that they jump all over them and stay they will buy TV units off them just because they bring in a living wage.

    The shinners proud populist bandwagon hunters

    29
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    Mute Toddimus Maximus
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    Jul 20th 2015, 2:04 PM

    Is the idea of governmental parties getting elected not to do what is populist or by the will of the people. Is that not how democracy works?

    44
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    Mute For Connolly
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    Jul 20th 2015, 2:07 PM

    Funny sort of Shinner thats voting PBP in the next election, baz, no?

    52
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    Mute Sunshine on a rainy
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    Jul 20th 2015, 2:28 PM

    Populist is still populist jamming. People before profit do not realise that ikea and all business need to make a profit to put their people first.

    8
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    Mute Tap Solny
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    Jul 20th 2015, 2:51 PM

    Shinners have more egg than face.

    8
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    Mute Stephen Browner
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    Jul 21st 2015, 6:54 PM

    You know you’re all f**cking losers right?

    1
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    Mute Juan Venegas
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    Jul 20th 2015, 12:35 PM

    Wow, I really feel like an a-hole. I have been criticizing Ikea with their useless cheap quality crap with few exceptions IMO, but I applaud their initiative. I might pay them a visit since I need a new floor matt

    264
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    Mute Martin Hayes
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    Jul 20th 2015, 1:20 PM

    If you think IKEA furniture is crap, you’ve never bought from Argos or Woodies or Bargaintown. IKEA furniture is vastly superior.

    292
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    Mute Paul Debussy
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    Jul 20th 2015, 1:58 PM

    Superior crap is still crap.

    49
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    Mute littleone
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    Jul 20th 2015, 12:42 PM

    Well done IKEA. Hopefully more will follow suit.

    142
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    Mute Laura Nì Fhalliùn
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    Jul 20th 2015, 1:53 PM

    Brilliant! If only others would follow suit

    67
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    Mute Ray Farrelly
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    Jul 20th 2015, 3:51 PM

    If only the government would follow suit.

    39
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    Mute David G
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    Jul 20th 2015, 12:40 PM

    How generous if them

    62
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    Mute Tom
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    Jul 20th 2015, 12:33 PM

    Hardly news. The company I work for pays exceptionally well but require high skill levels. Upskill; get paid more. Not rocket science.

    47
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    Mute Toddimus Maximus
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    Jul 20th 2015, 12:36 PM

    If everyone took your advice, wages would stagnate. Also an economy can’t function without unskilled workers. Fairy tale stuff Tom

    268
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    Mute Damien Moore
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    Jul 20th 2015, 12:37 PM

    Easier said than done for a lot of people. Your holier-than-thou attitude doesn’t help

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    Mute Joe Conlon
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    Jul 20th 2015, 12:42 PM

    @Tom, you have just shown exactly the similarity commentator’s on this site have with IKEA, one screw goes loose and the whole fecking thing falls apart!!

    80
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    Mute John Moylan
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    Jul 20th 2015, 1:23 PM

    @Tom – I dunno, if IKEA staff have to deal with customers of your attitude then I’d wager they’re as good at their job as you allegedly are at yours………….

    81
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    Mute Plane Spotter
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    Jul 20th 2015, 1:42 PM

    Obviously Tom is at the bottom of the skill level cause it seems that if he had brains he would be dangerous

    54
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    Mute Jimmy Riddler
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    Jul 20th 2015, 3:20 PM

    There you have it a nutshell. The pretentious, pompous side of FG shining through. If you were not fortunate to have a good start in life, or have the educational breaks that this poster may have had, then you are unworthy of benefiting from this so called recovery. Really showing your contempt for those less fortunate than you, arrogant pr@ck!!

    43
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    Mute Tom
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    Jul 20th 2015, 4:59 PM

    Thanks Jimmy. Been working since I was 12. But I’m sure you think I’m from privilege so there’s nothing I can say to convince you.

    People seem angry at being told the truth. And they then blame everybody else when they vote for Bertienomics…:)

    3
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    Mute Jimmy Riddler
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    Jul 20th 2015, 5:06 PM

    @ Tom:- If your type had their way everyone would be working from age 12, on jobsbridge preferably.

    It’s no wonder FG have never been returned to power, they cannot help but show their true colours, governing for the minority and gambling that the majority won’t vote. I made the mistake of voting for them in the last election, I will not repeat that mistake!!!

    24
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    Mute Tom
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    Jul 20th 2015, 5:28 PM

    I should mention that we took on new 60 people last month at entry level positions…on entry level pay. The good ones will rise. Such is life.

    2
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    Mute Toddimus Maximus
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    Jul 20th 2015, 5:52 PM

    I pointed out the fundamental flaw in your thinking, yet you still think you’re the cream that rose to the top. Interesting..

    16
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    Mute Eamonn Connaghan
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    Jul 20th 2015, 12:52 PM

    There’s a huge mistake in the article. You said they operate a single Irish store in ballymun. Did you forgot about their other store in Belfast?

    46
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    Mute Suzie Sunsine
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    Jul 20th 2015, 1:17 PM

    Eamonn you’re being silly now .

    73
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    Mute Padraig Piarais Mac AnTsaoir
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    Jul 20th 2015, 3:58 PM

    Not the first time they’ve made that mistake.

    15
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    Mute Suzie Sunsine
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    Jul 20th 2015, 8:29 PM

    but it has only one Irish store , the other one is not an Irish store ?

    5
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    Mute Padraig Piarais Mac AnTsaoir
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    Jul 20th 2015, 9:09 PM

    In what sense ‘Suzie’?

    2
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    Mute Suzie Sunsine
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    Jul 20th 2015, 9:29 PM

    it has one only Irish run store though so the article is correct , the other store is not Irish run .

    3
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    Mute Padraig Piarais Mac AnTsaoir
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    Jul 20th 2015, 9:37 PM

    Of course it’s not Irish run, it’s a Swedish company. It is however in Ireland, something The Journal seems unwilling to acknowledge.

    3
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    Mute Suzie Sunsine
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    Jul 20th 2015, 9:42 PM

    Padraig , the journal is correct , it operates a single Irish store . the other one is not an Irish store is it ?

    4
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    Mute Padraig Piarais Mac AnTsaoir
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    Jul 20th 2015, 9:53 PM

    If it’s not Irish then what is it Suzie?

    2
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    Mute Suzie Sunsine
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    Jul 20th 2015, 9:58 PM

    Padraig , you know you’re being silly now

    5
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    Mute Rashers Tierney
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    Jul 20th 2015, 2:31 PM

    C’mon the Swedes – beacons of social conscience in a naughty world! They are preparing to do this now?:-|

    37
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    Mute Mary Mc Carthy
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    Jul 20th 2015, 3:57 PM

    Good on them. There are plenty of big and medium sized companies who can afford to.give their employees a living wage of €11.50. It is an expense that can be written off against profits . The smaller the profits the less corporation tax they pay !. Win Win

    35
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    Mute Aoife Ni Ici
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    Jul 20th 2015, 1:03 PM

    No union recognition. No collevtive bargaining. Individual contracts only. David/Goliath. Don’t believe the hype(erstore)…

    30
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    Mute Juan Venegas
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    Jul 20th 2015, 1:20 PM

    Not everyone needs an union, companies like Google and other hight tech don’t offer collectives agreemend and they have no unions but the employees are happy because in exchange they get paid really well and get good working conditions to make sure there are no unions.

    76
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    Mute Martin Hayes
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    Jul 20th 2015, 1:23 PM

    Just like Ryanair or Dunne’s or most of the private healthcare facilities our government is trying to drive us into.

    14
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    Mute Kevin Higgins
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    Jul 20th 2015, 2:08 PM

    unions are only required when staff need an improvement in working conditions. when everything’s solves there’s really little to no need for them. I say this as a socialist

    43
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    Mute Rashers Tierney
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    Jul 20th 2015, 2:36 PM

    @Juan Venegas. You would really want to sit down and do some actual thinking one of these days, friend. EVERY, and I mean EVERY worker protection currently enjoyed by you, by me, and by everybody else was won by Unions. Holiday pay, sick pay., limitations on hours, rates of pay, rates of pay were not suddenly granted by bountiful employers. The fact that some modern Union leaders have become part of the establishment is neither here nor there. The fact is that even in Germany, that huge hub of industrial mighjt, the hard-won terms and conditions secured by unions are now under attack and in 2015 we are reverting to the “hiring fairs” of the eighteenth century. Try and inform yourself, for chrissakes.

    32
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    Mute Rayven
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    Jul 20th 2015, 3:31 PM

    Nick Hanauer: Beware, fellow plutocrats, the pitchforks are coming #TED : http://on.ted.com/b0u23
    Something for the trade unions to ponder a living wage makes economic sence it means everyone becomes a customer

    20
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    Mute Padraig Piarais Mac AnTsaoir
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    Jul 20th 2015, 3:54 PM

    Dear Journal, Ikea has 2 outlets in Ireland, one in Dublin and one in Belfast.

    19
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    Mute Padraig Piarais Mac AnTsaoir
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    Jul 20th 2015, 9:12 PM

    To those who red-thumbed, you should be ashamed of yourselves.

    8
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    Mute Kevin M Smyth
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    Jul 20th 2015, 7:18 PM

    I was never a fan of IKEA, but after this news, I will definitely pay them a visit. This seems like everybody wins. (employees will be happier, more purchasing power, great publicity . . )

    14
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    Mute Doogle Knows
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    Jul 20th 2015, 1:08 PM

    The McDonald’s of furniture.

    11
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    Mute Peter Slattery
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    Jul 20th 2015, 1:47 PM

    Snob.

    48
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    Mute who cares
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    Jul 20th 2015, 5:35 PM

    http://www.bbc.com/news/business-20356945

    All’s forgiven Ikea. Good on yis.

    10
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    Mute Rod_TenⒸ
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    Jul 20th 2015, 1:58 PM

    Well done on driving up the wage costs for every other employer, good thing we have 100% employment

    9
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    Mute Aoife Ni Ici
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    Jul 20th 2015, 12:37 PM

    What’s the catch, please ?

    7
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    Mute Padraig Piarais Mac AnTsaoir
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    Jul 20th 2015, 3:59 PM

    It should have been included in the bag of screws and bolts and the impossibly small Allen Key supplied with your pack.

    I’ll get me coat.

    12
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    Mute David Grey
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    Jul 20th 2015, 10:33 PM

    Jeg kan godt lide IKEA! I hope the New Political party the Social Democrats implement Scandinavian style working conditions in Ireland – we are highly abused in Ireland compared to Scandinavia – worked there twice- Brilliant pay and working conditions and great time off- we are treated like slaves in Ireland by comparison!

    4
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    Mute Peter Higgins
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    Jul 21st 2015, 3:26 PM

    This is the type of fairness and morality the Social Democrats are aiming for; and it’s very admirable. A Nordic company that deserves all the success it enjoys.

    1
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