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| Sports Direct founder Mike Ashley admits paying workers below the minimum wage | Sports Direct founder Mike Ashley admits paying workers below the minimum wage |
| (35 minutes later) | |
| Mike Ashley has admitted paying Sports Direct employees below the minimum wage at a hearing in front of MPs. | Mike Ashley has admitted paying Sports Direct employees below the minimum wage at a hearing in front of MPs. |
| The company founder said that workers were paid less than the statutory minimum because of bottlenecks at security in an admission that could result in sanctions from HMRC. | The company founder said that workers were paid less than the statutory minimum because of bottlenecks at security in an admission that could result in sanctions from HMRC. |
| Ashley told Iain Wright MP, who chairs the Business, Innovation and Skills Committee, that workers were paid below the minimum wage for a "specific time". | |
| He said that security processes had since been improved to that "literally hundreds of people" can walk through the security line each minute. | |
| Staff have said that they are subject to security checks lasting up to 15 minutes during which time they are not paid. | Staff have said that they are subject to security checks lasting up to 15 minutes during which time they are not paid. |
| Earlier in the hearing Steven Turner, assistant general secretary of Unite, was asked if Sports Direct had changed its working practices in light of media coverage and union pressure. | Earlier in the hearing Steven Turner, assistant general secretary of Unite, was asked if Sports Direct had changed its working practices in light of media coverage and union pressure. |
| He said that conditions had not improved, but that the 20p rise in the minimum wage had offset some of the pay lost during such checks. | He said that conditions had not improved, but that the 20p rise in the minimum wage had offset some of the pay lost during such checks. |
| Unite also revealed that Sports Direct has agreed with HM Revenue and Customs to compensate warehouse workers for paying less than the national minimum wage. | Unite also revealed that Sports Direct has agreed with HM Revenue and Customs to compensate warehouse workers for paying less than the national minimum wage. |
| In December, Ashley said that Sports Direct was in compliance with minimum wage regulations and that it takes its responsibilities very seriously. | In December, Ashley said that Sports Direct was in compliance with minimum wage regulations and that it takes its responsibilities very seriously. |
| Ashley said that he had also changed a policy whereby workers were fined 15 minutes pay if they were one minute late. | Ashley said that he had also changed a policy whereby workers were fined 15 minutes pay if they were one minute late. |
| "I honestly don't know how that policy started," he admitted. "If my kids were subject to that rule I would say it was unfair." | "I honestly don't know how that policy started," he admitted. "If my kids were subject to that rule I would say it was unfair." |
| He denied that workers were criticised over the tanoy but admitted that workers were not paid overtime if they stayed late. | He denied that workers were criticised over the tanoy but admitted that workers were not paid overtime if they stayed late. |
| Unite told MPs that Sports Direct "punishes" employees for challenging their employer, taking too long in the toilet or taking time off with a strike system. | |
| When the worker has six strikes, their work is terminated. | |
| "You have to have some kind of system," Mike Ashley said. "Call it 26 strikes - as long as they are used correctly." | "You have to have some kind of system," Mike Ashley said. "Call it 26 strikes - as long as they are used correctly." |