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You can find the current article at its original source at https://www.theguardian.com/business/2016/jun/07/sports-direct-agrees-back-pay-deal-with-hmrc-minimum-wage
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| Sports Direct to compensate workers after failing to pay minimum wage | Sports Direct to compensate workers after failing to pay minimum wage |
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| Mike Ashley’s Sports Direct has agreed with HM Revenue & Customs to compensate its warehouse employees for paying them less than the national minimum wage following a Guardian investigation last year that revealed the company was paying less than the legal minimum. | Mike Ashley’s Sports Direct has agreed with HM Revenue & Customs to compensate its warehouse employees for paying them less than the national minimum wage following a Guardian investigation last year that revealed the company was paying less than the legal minimum. |
| The agreement was revealed by officials from the union Unite who gave hard-hitting evidence to parliament’s business, innovation and skills select committee on Tuesday. | |
| Steve Turner, assistant general secretary of Unite, said there was “arrogance and contempt” at the top of Sports Direct, and that its approach to working practices is a “determined business model”. | |
| Related: Mike Ashley's Sports Direct working practices investigated by MPs – live | Related: Mike Ashley's Sports Direct working practices investigated by MPs – live |
| Luke Primarolo, regional officer at Unite, said there is a culture of fear at Sports Direct’s warehouse in Shirebrook, Derbyshire. | |
| “People are scared because they are working under a system when they know they could lose their employment at any moment,” he said. | |
| The Unite officers said there have been 110 ambulance callouts to the warehouse, including 38 times when workers complained of chest pains. Five ambulances have been called to Sports Direct’s warehouse in birth and miscarriage related matters, including one worker who gave birth in the toilets. | |
| MPs also heard that some Sports Direct staff are paid through a pre-paid card. Staff are charged £10 to get a card, plus a £10 a month management fee, 75p to use it at an ATM machine, and 10p when they get a text message confirming they have used it. | |
| Richard Fuller, the Conservative MP, said the evidence from Unite was “very disturbing”. | |
| In December, an undercover Guardian investigation revealed that Sports Direct warehouse staff were required to go through searches at the end of each shift, for which their time is unpaid, while they also suffer harsh deductions from their wage packets for clocking in for a shift just one minute late. | In December, an undercover Guardian investigation revealed that Sports Direct warehouse staff were required to go through searches at the end of each shift, for which their time is unpaid, while they also suffer harsh deductions from their wage packets for clocking in for a shift just one minute late. |
| The practices contributed to many staff being paid an effective rate of about £6.50 an hour against the then statutory rate of £6.70 – which potentially saved the FTSE 100 firm millions of pounds a year at the expense of some of the poorest workers in the UK. | The practices contributed to many staff being paid an effective rate of about £6.50 an hour against the then statutory rate of £6.70 – which potentially saved the FTSE 100 firm millions of pounds a year at the expense of some of the poorest workers in the UK. |
| Turner said there were talks between HMRC and Sports Direct over backpay for staff. | |
| Turner told MPs: “No workers have yet received back pay. We have been in discussions with the company and HMRC. There is an agreement with HMRC and we are currently in the process of balloting our members ... But this only affects employees [and not around 3,000 temporary workers]”. | |
| Unite added that there were around 200 warehouse workers who are employees of Sports Direct, while the more than 3,000 people working in the warehouse are supplied by employment agencies. | |
| On Monday Ashley, who will face the committee later on Tuesday, admitted for the first time to problems with the security procedures at the retailer’s Derbyshire warehouse – as he said the group’s chief executive will forgo a £4m bonus in the wake of the scandal. | On Monday Ashley, who will face the committee later on Tuesday, admitted for the first time to problems with the security procedures at the retailer’s Derbyshire warehouse – as he said the group’s chief executive will forgo a £4m bonus in the wake of the scandal. |
| In a letter to the sports chain’s 27,000 staff, the billionaire founder of the sports chain acknowledged that there had been issues with searches, while he also revealed that the group’s chief executive, Dave Forsey, will not be taking his four-year share bonus, worth as much as £4m. | In a letter to the sports chain’s 27,000 staff, the billionaire founder of the sports chain acknowledged that there had been issues with searches, while he also revealed that the group’s chief executive, Dave Forsey, will not be taking his four-year share bonus, worth as much as £4m. |
| Sports Direct had responded to the Guardian’s reports by announcing an internal review of the retailer’s working practices to be led personally by Ashley, plus a pay rise for staff, which the company said would cost it £10m. | Sports Direct had responded to the Guardian’s reports by announcing an internal review of the retailer’s working practices to be led personally by Ashley, plus a pay rise for staff, which the company said would cost it £10m. |
| MPs on the business, innovation and skills committee have been locked in a battle to get Ashley to attend parliament to answer their questions on working practices at the firm. He had repeatedly refused, despite the MPs formally issuing him with a summons, while he also taunted committee members by calling them a joke. | MPs on the business, innovation and skills committee have been locked in a battle to get Ashley to attend parliament to answer their questions on working practices at the firm. He had repeatedly refused, despite the MPs formally issuing him with a summons, while he also taunted committee members by calling them a joke. |
| However, Ashley, who also owns Newcastle United, backed down over the weekend. MPs had indicated they would proceed with plans to potentially have him found in contempt of parliament and seek to trigger a Commons vote on whether the tycoon is a “fit and proper” person to be running a business. | However, Ashley, who also owns Newcastle United, backed down over the weekend. MPs had indicated they would proceed with plans to potentially have him found in contempt of parliament and seek to trigger a Commons vote on whether the tycoon is a “fit and proper” person to be running a business. |