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IKEA Australia redesigns approach to work with new human-centric policies, support and benefits for co-workers and their families

Corporate news29 November 2023
Launching industry-leading benefits for meaningful career opportunities in retail

29 November 2023 – 2,700 IKEA retail store and customer service centre co-workers (employees) across Australia will benefit from a suite of industry-leading policies, support measures and benefits secured in a new Enterprise Agreement.

Standout changes include the introduction of a fixed rostering option, a four-day work week, full and part-time employment only with no casual roles, five weeks of annual leave, paid parental leave regardless of tenure and superannuation on unpaid parental leave.

IKEA Australia’s new Enterprise Agreement includes progressive changes for its 2,700 store and customer service centre co-workers. Many benefits also apply, where relevant, to the entire cohort of 4,000+ IKEA Australia co-workers nationally, which includes those working in office and Distribution Centre (warehouse) roles.

IKEA is committed to continuous renewal and improvement, with new policies that recognise, respect, and support the differences in each co-worker’s life and family, including: 

  • Paid parental leave available to all co-workers from day one – no minimum tenure, with superannuation contributions on both paid and unpaid parental leave.
  • Fixed rostering option – enabling co-workers to secure a four-day work week, or other options, allowing for more consistent scheduling so co-workers can plan to meet any commitments or caring responsibilities well in advance. Options that open the door to a retail career for those needing more certainty in their rosters. 
  • New additional paid leave policies – which go beyond the ‘traditional’ definition of family. Leave for grandparents, fertility treatment, gender affirmation, Indigenous cultural events and ceremonies, and alternative days of significance other than public holidays.

 

Industry-leading paid parental leave policy

In the Australian retail sector, IKEA is supporting working parents with an industry-leading paid parental leave policy from the first day of employment, meaning there is no minimum tenure limiting access. Up to 26 weeks paid leave is available for all co-workers, regardless of family formation, and superannuation will now be paid on any unpaid parental leave a co-worker elects to take – up to 26 weeks.

 

New fixed rostering policy moves retail employee potential from ‘casual’ to ‘career’ 

IKEA Australia is committed to providing meaningful careers in retail, with all store co-workers employed on a full-time, or part-time basis, instead of a casual role.

Another significant shift is the opportunity for any retail store co-worker to opt in to fixed rostering. This change has been made to give co-workers flexibility, but also predictability, in their schedules to better accommodate life outside of work. All IKEA Australia co-workers covered by the new Enterprise Agreement have the opportunity to have a fixed roster, playing a part in reducing the mental burden on those with caring responsibilities trying to organise these commitments around their work. 

 

Redesigning the working week and year

Written into IKEA Australia’s new enterprise agreement are some key provisions that will have positive social impacts by giving co-workers more time, and flexibility, for their personal lives. This includes a permanent proviso enabling IKEA retail store co-workers to elect a ‘four-day week’, as well as: 

  • Five weeks of paid annual leave for all co-workers. Six weeks of paid annual leave for overnight co-workers. Co-workers who work on weekends are entitled to a minimum of one weekend off every four weeks. 
  • Grandparent leave: one day paid leave each year to spend time with grandchildren. 
  • Fertility treatment leave: up to five days paid leave per year to undergo fertility treatment or support a partner doing so.
  • Gender affirmation leave: up to ten days paid leave for co-workers affirming their gender. 
  • Natural disaster leave: up to two days per occasion, total of six days per year, where a disaster is declared by government or where a co-worker is unable to travel to work or required to remain at their residence due to a natural disaster. 
  • Indigenous Cultural & Ceremonial Leave: one day of paid leave each year for an Indigenous or Torres Strait Islander co-worker to participate in a cultural event or ceremony. 
  • Observation of alternative days of significance other than public holidays: to observe an alternative day that’s meaningful to them, or not observe a day declared as a public holiday.

 

Elin Åhlund, People and Culture Manager, IKEA Australia, said, “IKEA is committed to making employment in the retail sector a strong and steady career option for Australians. While retail is synonymous with a casualised workforce, at IKEA our focus is on creating predictability, flexibility, and security for our co-workers, removing barriers to retail as a secure career option and creating a workplace and a culture where people can bring their whole selves to work.”

“At IKEA, our vision is to create a better everyday life for the many people, including our co-workers, who are at the heart of our business. We want to have an IKEA workforce which mirrors the diversity of the world around us, and to do that we need inclusive policies and conditions for our co-workers to thrive both at work and at home. I’m proud that we have secured a new Enterprise Agreement which provides secure jobs; clear and consistent fixed rosters; more annual leave and other leave benefits; as well as more time and flexibility for our co-workers’ personal lives”, concludes Åhlund.