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You can find the current article at its original source at https://www.theguardian.com/business/2016/sep/06/sports-direct-inquiry-key-points-working-practices
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'A potentially oppressive model': key points of Sports Direct review | 'A potentially oppressive model': key points of Sports Direct review |
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Sports Direct has pledged to offer casual retail staff guaranteed hours instead of zero-hours contracts and apologised for conditions at its Shirebrook warehouse, including the “six strikes” policy that made workers fear losing their jobs. | |
The review of working practices at the retailer came after the Guardian exposed how temporary staff at warehouses were effectively being paid less than the minimum wage, leading to a public and political outcry. | The review of working practices at the retailer came after the Guardian exposed how temporary staff at warehouses were effectively being paid less than the minimum wage, leading to a public and political outcry. |
The report, written by the City law firm Reynolds Porter Chamberlain and published on Tuesday (pdf), admitted “[s]erious shortcomings … in working practices in [the] warehouse which the board deeply regrets and apologises for.” | The report, written by the City law firm Reynolds Porter Chamberlain and published on Tuesday (pdf), admitted “[s]erious shortcomings … in working practices in [the] warehouse which the board deeply regrets and apologises for.” |
It said policies were now in place to ensure all warehouse staff are paid above the national minimum wage, concluding that the previous breach of the legally required level, which led to Sports Direct having to offer £1m in back pay to its warehouse staff, was “unacceptable but unintentional.” | |
Sports Direct’s board has also asked RPC to lead a further comprehensive review of working practices and corporate governance before next year’s AGM and present findings to shareholders. The review will using the initial report as a benchmark to “identify what further action is required and to monitor steps already undertaken”. The board also promised to engage with shareholders to get their views. | |
Mike Ashley accepted that as founder and majority shareholder he “takes ultimate responsibility for any aspects of the working practices that were unsatisfactory, even where he is not in day-to-day control of these matters or had no knowledge of them”. | |
Its key points include: | Its key points include: |