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Sports Direct pay pledge is far from enough Sports Direct pay pledge is far from enough
(about 17 hours later)
Mike Ashley’s pledge to increase pay at Sports Direct and improve working conditions represents an extraordinary climbdown.Mike Ashley’s pledge to increase pay at Sports Direct and improve working conditions represents an extraordinary climbdown.
The tycoon barely speaks in public, let alone openly admitting that the company could be doing better.The tycoon barely speaks in public, let alone openly admitting that the company could be doing better.
Just two weeks ago Sports Direct issued a lengthy defence of its employment practices and hit out at “unfounded criticisms”.Just two weeks ago Sports Direct issued a lengthy defence of its employment practices and hit out at “unfounded criticisms”.
Ashley chose New Year’s Eve to announce that the sportswear retailer would start paying staff 15p more than the minimum wage and that he wanted to overhaul its image as an employer.Ashley chose New Year’s Eve to announce that the sportswear retailer would start paying staff 15p more than the minimum wage and that he wanted to overhaul its image as an employer.
“I want to see Sports Direct become the best high street retail employer after John Lewis,” he told the Daily Mirror.“I want to see Sports Direct become the best high street retail employer after John Lewis,” he told the Daily Mirror.
“I realise this is ambitious and it won’t be easy, but I believe that as a FTSE 100 or even 250 company we have a responsibility to set a high moral standard.”“I realise this is ambitious and it won’t be easy, but I believe that as a FTSE 100 or even 250 company we have a responsibility to set a high moral standard.”
The Unite trade union has dismissed the comments as a “PR stunt”, and it certainly leaves many of the issues raised by the Guardian’s investigation into Sports Direct unresolved.The Unite trade union has dismissed the comments as a “PR stunt”, and it certainly leaves many of the issues raised by the Guardian’s investigation into Sports Direct unresolved.
It found that the company was effectively paying below the minimum wage by making staff undergo rigorous searches, typically lasting 15 minutes, at the end of their shift. The searches, which go down to the last layer of clothing, take place because management is concerned about products being stolen.It found that the company was effectively paying below the minimum wage by making staff undergo rigorous searches, typically lasting 15 minutes, at the end of their shift. The searches, which go down to the last layer of clothing, take place because management is concerned about products being stolen.
Two undercover reporters for the Guardian found their pay averaged £6.50 an hour during shifts they worked at Sports Direct’s warehouse as a result of the unpaid searches. A 15p pay rise would therefore lift their hourly pay to just £6.65, still below the minimum wage of £6.70, and not the official rate of £6.85 cited by the company on Thursday.Two undercover reporters for the Guardian found their pay averaged £6.50 an hour during shifts they worked at Sports Direct’s warehouse as a result of the unpaid searches. A 15p pay rise would therefore lift their hourly pay to just £6.65, still below the minimum wage of £6.70, and not the official rate of £6.85 cited by the company on Thursday.
While any increase in pay is welcome, Sports Direct has so much further to go if it even wants to be considered in the same league as John Lewis as an employer.While any increase in pay is welcome, Sports Direct has so much further to go if it even wants to be considered in the same league as John Lewis as an employer.
This announcement does not address the potential arrears that have been built up by staff waiting to be searched. Not does it address the company’s use of zero-hour contracts and casual staff, a strict “six strikes and you’re out” disciplinary procedure that includes a penalty for taking too long in the toilet, and staff being harangued by a tannoy in the warehouse for not working fast enough.This announcement does not address the potential arrears that have been built up by staff waiting to be searched. Not does it address the company’s use of zero-hour contracts and casual staff, a strict “six strikes and you’re out” disciplinary procedure that includes a penalty for taking too long in the toilet, and staff being harangued by a tannoy in the warehouse for not working fast enough.
Ashley said that while several thousand Sports Direct staff receive “life changing bonuses” each year through its incentive scheme for managers, the company also has an “obligation to our whole workforce”.Ashley said that while several thousand Sports Direct staff receive “life changing bonuses” each year through its incentive scheme for managers, the company also has an “obligation to our whole workforce”.
This is, however, the least that should be expected. While Sports Direct reviews its employment standards, others are setting a new bar. Aldi and Lidl have announced in recent weeks that they will pay shop floor staff the “national living wage”, with Aldi committing to pay £8.40 an hour outside London and £9.45 in London, and Lidl paying £8.20 and £9.35. The German supermarkets have shown that discount retailing does not need to be combined with discount wages. This is, however, the least that should be expected. While Sports Direct reviews its employment standards, others are setting a new bar. Aldi and Lidl have announced in recent weeks that they will pay shop floor staff the living wage, with Aldi committing to pay £8.40 an hour outside London and £9.45 in London, and Lidl paying £8.20 and £9.35. The German supermarkets have shown that discount retailing does not need to be combined with discount wages.