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| Sports Direct offers some staff guaranteed hours | |
| (35 minutes later) | |
| Sports Direct has said it will offer directly employed casual retail staff at least 12 guaranteed hours a week, instead of zero-hour contracts. | |
| However almost all staff at the firm's troubled Shirebrook warehouse, are agency workers and are not eligible. | |
| In a report commissioned by the firm, it apologised for conditions at Shirebrook, which have been likened to those of a Victorian workhouse. | |
| The company has been under mounting pressure to overhaul the way it is run. | The company has been under mounting pressure to overhaul the way it is run. |
| Last year an investigation by the Guardian newspaper revealed that the firm's staff were subject to lengthy security searches which, in some cases, resulted in their pay falling below the legal minimum wage. | Last year an investigation by the Guardian newspaper revealed that the firm's staff were subject to lengthy security searches which, in some cases, resulted in their pay falling below the legal minimum wage. |
| And a BBC investigation found ambulances were called out to Sports Direct's complex at Shirebrook, in Derbyshire, 76 times in two years. | And a BBC investigation found ambulances were called out to Sports Direct's complex at Shirebrook, in Derbyshire, 76 times in two years. |
| Profile of Sports Direct founder Mike Ashley | |
| Sports Direct: Reaction to working practices review | |
| In Tuesday's report, which comes a day ahead of the company's annual shareholder meeting, the firm said its failure to pay some staff at its Shirebrook warehouse the minimum wage was "unacceptable but unintentional", but said it had a new pay policy in place. | |
| It also said it would suspend its "six strike system" for misdemeanours under which staff were given "a strike" for spending too long in the toilet, excessive chatting or taking a day off sick. | It also said it would suspend its "six strike system" for misdemeanours under which staff were given "a strike" for spending too long in the toilet, excessive chatting or taking a day off sick. |
| Once an employee had six strikes they were automatically dismissed. | Once an employee had six strikes they were automatically dismissed. |
| Warehouse concerns | |
| Labour MP Iain Wright, chairman of the committee that lambasted Mike Ashley and Sports Direct for its working practices, said the latest report "isn't a whitewash", but he doesn't think it goes far enough. | |
| Speaking on Today, he said the abolition of zero hours contracts for retail staff will help the 18,000 people who work in Sports Direct shops, but added "we'd like to see whether that can be applied to the warehouse", which employs about 4,000 people. | |
| The report said Sports Direct owner Mike Ashley "takes ultimate responsibility for any aspects of the working practices that were unsatisfactory". | The report said Sports Direct owner Mike Ashley "takes ultimate responsibility for any aspects of the working practices that were unsatisfactory". |
| Shareholders have called on the firm's billionaire founder, who also owns Newcastle United FC, to improve both corporate governance and working practices at the company. | Shareholders have called on the firm's billionaire founder, who also owns Newcastle United FC, to improve both corporate governance and working practices at the company. |
| 'Unpleasant surprise' | |
| In June, in an appearance in front of the Business, Innovation and Skills select committee investigating working conditions at the firm, Mr Ashley admitted the firm had "probably" outgrown his ability to run it. | In June, in an appearance in front of the Business, Innovation and Skills select committee investigating working conditions at the firm, Mr Ashley admitted the firm had "probably" outgrown his ability to run it. |
| He said at the time that much of what he'd found out, after starting an internal investigation into how staff were treated at its Shirebrook distribution centre six months ago, was an "unpleasant surprise". | He said at the time that much of what he'd found out, after starting an internal investigation into how staff were treated at its Shirebrook distribution centre six months ago, was an "unpleasant surprise". |
| The firm said it had already commissioned a second review of working practices to monitor progress. |