Sports Direct boss Mike Ashley to review staff conditions

Move comes after UK sportswear retailer came under fire over employment practices

Sports Direct founder Mike Ashley: will oversee  a review of conditions for his company’s thousands of agency warehouse workers. Photograph: Lee Smith/Reuters
Sports Direct founder Mike Ashley: will oversee a review of conditions for his company’s thousands of agency warehouse workers. Photograph: Lee Smith/Reuters

Sports Direct, Britain's biggest sportswear retailer, responded to critics of its employment practices on Friday with the launch of a review of conditions for its thousands of agency warehouse workers, to be overseen by its billionaire founder and majority shareholder, Mike Ashley.

The FTSE 100 company, under fire from media, investors and politicians, also hit back at what it called “unfounded criticisms”, issuing a long list of rebuttals.

A report by the Guardian last week said that protracted security checks of workers at its main warehouse in Shirebrook, central England, meant that some were effectively paid less than the legal minimum, an allegation denied by the company.

“The board has agreed that Mike Ashley shall personally oversee a review of all agency worker terms and conditions to ensure the company does not just meet its legal obligations, but also provides a good environment for the entire workforce,” Sports Direct said on Friday.

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The scope of the review will include the operation of a “strike” disciplinary system.

The Guardian had said staff were warned they would be sacked if they received six black marks, or "strikes", over a six-month period for offences including "errors", "excessive/long toilet breaks", "time wasting", "excessive chatting", "horseplay" and "using a mobile phone in the warehouse".

In November the Shirebrook facility used about 4,300 agency workers.

Sports Direct has a global workforce of 28,000, of which about 20,000 are employed in the UK.

Mr Ashley, who owns 55 per cent of Sports Direct’s equity and currently serves as the firm’s deputy chairman, will start the review next month.

– (Reuters)