Yorkshire recruiters criticised as ‘Victorian’ as Sports Direct profits take a fall

UNIONS have launched a scathing attack on the Yorkshire recruiters involved in the Sports Direct working conditions scandal, with calls for the sportswear giant to cancel its contracts with the businesses following a decline in profitability.

Unite today linked the decline in profitability posted by Sports Direct was down to a poor public image.

 It said that recruiters Brighouse-based Transline and The Best Connection were causing “irreparable harm” to the retailer’s reputation.

Sports Direct posted an 8.4% fall in underlying profits to £275.2m and last month 60% stakeholder Mike Ashley was hauled in front of BIS committee over poor employment practices.

Dave Forsey, chief executive, said of the results:”The Group has delivered a disappointing full year financial performance, impacted primarily by a tough trading environment in the second half across our sports retail businesses.”

Employment practices at Sports Direct have been called ‘Victorian’ by the union, which compared the business to a novel by Charles Dickens, with zero-hour contracts rife.

The union gave evidence at the hearing that pre-pad debit cards which employees had to pay for on a monthly basis were used to transfer wages.

An FOI request over ambulance callouts to the Shirebrook site found that strokes and even a birth in the toilets had been recorded at the warehouse.

And it is calling for Sports Direct to cancel its contracts with the employment agencies.

The Mike Ashley-owned company has been harshly criticised for paying below minimum wage to staff, as well as conditions at its Shirebrook factory, to which Transline helped supply around 3,000 agency workers. Around 200 were employed directly by Sports Direct.

£200m-turnover Transline, along with The Best Connection, which has offices in Leeds, Grimsby, Chesterfield, Hull, Sheffield and Wakefield, with a York site opening soon, has been in the firing line following the exposure of employee conditions at Shirebrook.

In June 2016, Chris Birkby, managing director and Jennifer Hardy, finance director at Transline as well as executives from The Best Connection were grilled by MPs

Unite assistant general secretary Steve Turner said: “It is clear that shameful work practices have not only battered Sports Direct’s reputation, but are seriously harming its profits and share price.

“Unless Sports Direct severs ties with these employment agencies and moves to put workers on permanent contracts, then it risks further damage to its beleaguered reputation and profits.”

Regarding Transline’s ban in 2014 from operating in the food and drink market, Mr Turner said: “It is incomprehensible that an employment agency deemed unfit and barred from operating in one sector of the economy can be allowed to carry on using the same employment practices in another part of the economy unchecked.”

A Transline spokesperson said: “We fulfil our duty of care to all our employees and our staff retention levels are very high. We are a responsible employer, and we work with our customers, such as Sports Direct, to ensure their sites have good working conditions for our staff.”