Under-fire retailer Sports Direct International has pledged to pay its employees above the national minimum wage from January 1st, in a move which will cost the firm £10 million.
The group, which is controlled by Newcastle United FC billionaire owner Mike Ashley, said the increase will apply to casual workers as well as all of its directly employed staff.
It comes as the company tries to end a row over its treatment of employees after allegations by the Guardian newspaper earlier this month about low wages, and claims that it forces compulsory unpaid 15-minute searches of staff as they leave, while also docking wages for clocking in just one minute late.
The increase will benefit about 15,000 mainly store employees on contracts that don‘t guarantee them a minimum amount of work and 4,000 staff at its warehouse in Shirebrook, central England, it was reported.
Mr Ashley said this month he would personally oversee a review of the company‘s handling of workers at the Shirebrook depot after newspaper reports that mandatory staff searches at the end of shifts meant they effectively received below the minimum wage.
Mr Ashley said he wants to see Sports Direct become the best employer among UK retailers after staff-owned John Lewis Partnership.
Sports Direct workers aged 21 and over will see their salary rise to £6.85 an hour from the national minimum of £6.70 pounds, it was reported.
Earlier this month Sports Direct posted half-year results showing a 3.6 per cent rise in underlying pre-tax profits to £166.4 million for the six months to October 25st.
Union Unite said Mr Ashley needed to make further reforms, or else this sole move would be seen as a public relations stunt designed to distract attention from the firm’s “Victorian work practices”.
Unite regional officer Luke Primarolo said: “If Mike Ashley is to fulfil his promise of making Sports Direct a model employer then he needs to commit Sports Direct to becoming a living wage employer and stamp out abusive work practices by putting all staff on permanent contracts.
“Otherwise he risks accusations of engaging in yet another PR stunt and a continued loss of confidence among customers and investors alike.” – Bloomberg / PA
