Business and union leaders slam “pay packet robbery” at Sports Direct

Figures from both ends of the political and business spectrum have reacted with dismay at the working practices at Sports Direct’s Shirebrook operation.

Last week the Business, Innovation and Skills Committee’s report slammed “Victorian working practices” at Shirebrook.

Simon Walker, director general of the Institute of Directors, said: “This is thoroughly negative for the whole of British business. We worry that the public will look at this damning report on working conditions at Sports Direct and assume it is how British companies behave. Nothing could be further from the truth. IoD members, who run enterprises of all shapes and sizes across the country will be as appalled by the MP’s indictment of Mike Ashley as a anyone else. It damages all businesses when a high profile figure fails in his duty to treat employees, customers and shareholders fairly, and with dignity.

“I implore Mike Ashley to reflect on the deep damage he has done to public trust in business. He, the chairman Keith Hellawell, and the board of Sports Direct, should take immediate steps to improve conditions for his staff to wipe clean the black marks of this scandal. Our new Prime Minister has made it clear that she will act against reckless bosses. For the sake of the whole business community, Ashley must show that he can change, otherwise kneejerk regulatory and legislative responses will impact good and bad businesses alike.”

Meanwhile, the Unite union has termed the mistreatment as “pay packet robbery on an industrial scale” pointing to a “culture of fear” at the warehouse with workers scared to speak out against wage abuses, or report the frequent calls to the emergency service to deal with unwell workers. One woman worker, terrified of losing her job, gave birth in the toilets because she was too afraid to take time off, says Unite.

Reacting to the report, Unite said that this was “absolutely not the last word, this can only be the beginning”, in the fight against the mistreatment of working people sadly all too common in the UK today.

The union linked much of the blame for worker abuse to the rapid growth in insecure agency labour in the modern workplace. It called again for Sports Direct to prove that it was serious about improving working conditions by replacing the temporary contracts for workers with more secure employment.

Iain Wright MP, chair of the Business, Innovation and Skills Committee, said: “The business model as operated by Sports Direct, both at the Shirebrook warehouse and in the shops across the country, involves treating workers as commodities rather human beings. Low cost products for customers, and profits for shareholders come at the cost of maintaining contractual terms and working conditions which fall way below acceptable standards in a modern, civilised economy. This model has proved successful for Mr Ashley and there is a risk this will become much more the norm in Britain.

“A modern and developed economy focused on innovation and supporting entrepreneurialism and enterprise cannot be allowed to operate like this. We were also disgusted at the poor evidence given by the agency companies, who deduct money from low-paid workers without proper explanation and justification.

“As a Committee, we will want to consider the full implications of this type of business model in a future inquiry.”