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IKEA last month offered to reimburse the state of Maryland for the unemployment benefits the state paid to the retail giant鈥檚 furloughed workers during the early days of the COVID-19 pandemic.
The money instead is going to two foundations that are helping Marylanders cope with the public health and economic crises, the company said Wednesday.
In a letter obtained by Maryland Matters that was sent late last month to Gov. Larry Hogan, IKEA USA President Javier Qui帽ones outlined the IKEA US Community Foundation鈥檚 plans to cover the state鈥檚 $2,136,346 in payments to the company鈥檚 furloughed workers while the two Maryland stores, in College Park and Nottingham, were closed.
鈥淚KEA Retail U.S. has reopened its stores, and the Foundation, using funds contributed by IKEA Retail U.S., has decided to take the opportunity to 鈥榩ay it forward鈥� and provide your state with equivalent funds,鈥� Qui帽ones wrote to Hogan.
It appears as if IKEA is making a similar gesture in other states. According to news accounts, the company has compensated Massachusetts for $1.4 million in unemployment benefits paid to IKEA workers, donated $1.2 million for coronavirus relief in Michigan, and contributed $2 million to a state government initiative to help Virginia residents facing evictions due to the ongoing pandemic.
In his letter to Hogan, Qui帽ones expresses the hope that the state will use the money 鈥渇or the greatest public benefit.鈥�
Michael Ricci, a spokesman for Hogan, said administration officials suggested that the retailer get in touch with two area nonprofits, Baltimore鈥檚 Promise and the Greater Washington Community Foundation, to discuss how to distribute the $2.1 million.
U.S. Rep. David J. Trone, a Democrat, who learned recently of IKEA鈥檚 largesse, suggested in a letter to Hogan Tuesday that the state use the extra money to hire more workers to process unemployment insurance benefits, in an effort to get government aid to needy Marylanders faster.
鈥淭his generous donation from IKEA presents the state with a real opportunity to repair and strengthen the faulty unemployment system that millions of Marylanders rely on,鈥� Trone said in a statement provided to Maryland Matters. 鈥淲e need to take care of every single Marylander impacted by this pandemic, and reinvesting this money is a good place to start.鈥�
But an IKEA spokeswoman said Wednesday that the retailer followed through on Hogan鈥檚 recommendations.
鈥淲e are returning the amount of unemployment insurance co-workers received from Maryland through payment to Baltimore鈥檚 Promise ($1.07 million) and Greater Washington Community Foundation ($1.07 million),鈥� the spokeswoman said.
For now, IKEA鈥檚 gesture to Maryland appears to be unique in the state. Ricci said that aside from businesses donating personal protective equipment to the state government, this would be the first significant corporate donation of this type during the pandemic to Maryland or programs the state funds.
鈥淲e are appreciative of the ongoing support from the 27 states where IKEA operates stores, including the unemployment funds paid to our co-workers who were furloughed in the early weeks of the pandemic,鈥� the company spokeswoman told Maryland Matters. 鈥淧eople are the heart of our business, and the state unemployment benefits helped IKEA U.S. co-workers during a difficult time.鈥�
The company furloughed approximately 14,000 workers in the U.S. when the stores closed, but all have been invited to return to work.
(Disclosure: The David and June Trone Family Foundation is a financial supporter of Maryland Matters.)
