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Ed Turner
Ed Turner,
Category: Law
Satisfied Customers: 1270
Experience:  Director and Consultant Solicitor (Self-Employed) at Ed Turner LLB Limited
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We have an issue with a subsidiary of the IKANO Group in

Customer Question

Good morning,
JA: Hi. How can I help?
Customer: We have an issue with a subsidiary of the IKANO Group in Malaysia. Allow me to put this issue in writing. You OK with that?
JA: Where are you? It matters because laws vary by location.
Customer: In Malaysia, Commonwealth member.
JA: What steps have you taken so far?
Customer: It is not a personal issue. We need to lay off 25 staff (and their families) and we are protesting through all channels available. IKANO Handel Malaysia, IKANO Sout East Asia, IKEA foundation in Netherlands, Luxembourg and Liechtenstein, IKANO foundation in Luxembourg, IKEA Inter system, Sweden. They all revert back to IKANO South East Asia and they do not address this problem correctly.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Sure. We are a small manufacturer of food items for IKEA stores in Malaysia and Singapore. We supply them since 2003 without any complaints about, quality of products, pricing, service, commitment and dedication. Every supplier of IKEA must comply with their IWAY conditions and we do.
Submitted: 6 months ago.
Category: Law
Customer: replied 6 months ago.
further to my earlier information. For us the issue is not to take legal action because the customer can always end the relationship. However, they base the termination on a flimsy audit and that may give an opportunity to make them change their mind. It is not our performance, not our pricing or service. The Vendor supply agreement is an agreement set up by IKANO and very one sided. It is their initiative to renew these every 2 years. They had not renewed the last one. Anyway our experience with IKANO was that even when you have a solid agreement, they still breach it. What approach would you suggest? Can we wake up the IKANO GRoup that this type of termination is not ethical. IKEA?IKANO run a foundation where they donate money for "Save the children, UNESCO, Doctors without borders, etc. All very nice, but a company in the group has no problem to destroy the lives of 25 workers and their families.....
Customer: replied 6 months ago.
If you like I can send you correspondence since we received letter of termination.
Expert:  Virtual-mod replied 6 months ago.

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 6 months ago.
thank you for the response. we can wait. it is weekend anyway.
Expert:  Ed Turner replied 6 months ago.

Hello. I am Ed, a Solicitor qualified in England & Wales with over a decade’s experience in the legal profession advising clients.

I specialise in Commercial Contracts, Business Transactions, Employment, Dispute Resolution, Personal Injury and Road Traffic Law and will be able to resolve your legal problem today.

Regarding the site’s automatic offer of a Premium Service Phone Call, I shall be delighted to talk with you by phone to discuss your issue in greater detail if you accept the offer. However, if you do not want a phone call, please cancel the offer for a Premium Service Phone Call and you will not be charged extra.

Expert:  Ed Turner replied 6 months ago.

To enable me to answer your query, please provide me with some further information about your legal issue and how you want a lawyer to help you.

Is your overseas customer considering terminating a contract with you and this will lead to disastrous consequences for your company and your employees?

Customer: replied 6 months ago.
Hello Ed, Because of our laws in Malaysia originate from the colonial days I put my case to you in order to learn if we have a basis to ask for compensation. We are a Malaysian Manufacturer and supplying IKEA stores in Malaysia and Singapore with food items for their restaurant. We have been doing that for >17 years. No contracts, although IKEA has their own Vendor Supply Agreement, but they are their initiative and very one sided. We have never received a VSA since 2010 and they issued purchase orders, for every store several per week. No contract but >13 years direct supplies based on their PO's. IKEA operates a food safety and good manufacturing practice, called IWAY. If a manufacturer does not comply, they can lose the business with them.
All those years we never had quality issues, price issues and the likes. Many of the operating staff of IKEA declared that our service was "2d to none". Suddenly (20-10-2019)an IWAY auditor stormed into our factory, did not follow registration, health requirements as indicated on our factory door and in HACCP, GMP, FSCC. He neither followed the audit procedure mentioned in IWAY!)He told my mangers not to intervene with him interviewing our staff (upsetting the QA/QC executives and the factory manager). He interviewed our staff in one group (setting up one against the other). Unprofessional, unethical and hazardous. He learned that at request of the foreign workers (Bangladeshi, Myanmar) our HR safeguarded their passports, since there were raids on their hostel and personal documents were lost/stolen. He also noticed that our vegetable oil was not carrying the RSOP label. These two issues are being used to terminate our services (08-11-2019)totally as per 28th of February. Because of the rapid growth of IKEA here (3 stores opened within 4 years; never asking if we could manage to supply them) we became very dependent on their business (>75%). Hence this termination forces us to lay off >25 of our 40 employees. We protested from the very first day, but they stick to their guns, even when both issues were corrected the day the audit took place. We did not get any rectification time. It is finished. A disaster for our foreign workers especially. In my defense I never spoke about the losses of our company, I focused on the workers, but our losses are tremendous, since we just started to build a brand new factory to serve them even better. I would appreciate if I could learn from you if we would have a case under British Law. My thinking was to start a case to get the audit, of which there is no official report (IWAY does ask for it) declared nil and void because of complete ignorance of vistor rules, health rules, HACCP rules and IWAY rules. If this audit was declared nil & void we could ask for compensation. Looking forward to hearing from you. Best regards, ***** *****
Expert:  Ed Turner replied 6 months ago.

Hello Hans

Thank you for your detailed reply, which is very helpful.

This is an enquiry where Just Answer is not the best forum for a prospective client to obtain solid and reliable legal advice. I will need to see a copy of any contractual documents, including the central contract document and relevant written correspondence with the other party and hold a conference call with you to ascertain whether you have an arguable claim for breach of contract against IKEA and whether you are in a financial position to risk the potential costs of a litigation.

The dispute may well involve complex issues of contract and commercial law and cross-jurisdiction issues. I am a Solicitor qualified in the legal jurisdiction of England & Wales. You may have to instruct separate lawyers qualified in England & Wales, Sweden and Malaysia specialising in different areas of law. From your messages, this dispute may involve issues of employment, commercial, health and safety, employers liability and personal injury law.

While I can accept your instructions to act for you in my express capacity as a solicitor and conduct the reserved activity of litigation under the guise of my main law firm in England & Wales, I am not permitted to disclose my contact details to you without you accepting a Premium Service Phone Call.

I will therefore put through an offer of a Premium Service Phone Call and suggest that we arrange a mutually convenient time to speak via an Internet voice/video conference provider such as Skype, WhatsApp or Zoom.

Kind regards


Expert:  Ed Turner replied 5 months ago.

Do you still need expert assistance in this matter?

Please revert to me if you have any further questions and I will be delighted to assist.

Otherwise, I shall be grateful if you will please mark your enquiry as “Closed” and give me a “Positive” rating in order to conclude this matter.

Kind regards