This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2017/sep/06/sports-direct-chairman-zero-hours-contracts-keith-hellawell-agm
The article has changed 9 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| Sports Direct chairman narrowly survives shareholder revolt | Sports Direct chairman narrowly survives shareholder revolt |
| (35 minutes later) | |
| The Sports Direct chairman, Keith Hellawell, has defended the use of zero-hours contracts as he survived a shareholder rebellion over his role at the retailer. | The Sports Direct chairman, Keith Hellawell, has defended the use of zero-hours contracts as he survived a shareholder rebellion over his role at the retailer. |
| Hellawell, 75, who has been chairman since 2009, had pledged to step down if he failed to win the backing of independent investors who voted against him last year. | Hellawell, 75, who has been chairman since 2009, had pledged to step down if he failed to win the backing of independent investors who voted against him last year. |
| Just over 53% of independent investors backed his re-election on Wednesday even though he has been viewed as a weak chairman who is failing to counter the power of the company’s majority shareholder and founder, Mike Ashley. The senior independent director Simon Bentley was also re-elected. | Just over 53% of independent investors backed his re-election on Wednesday even though he has been viewed as a weak chairman who is failing to counter the power of the company’s majority shareholder and founder, Mike Ashley. The senior independent director Simon Bentley was also re-elected. |
| Before the sparsely attended meeting at Sports Direct’s head office in Shirebrook, Derbyshire, investors had set the scene for a rebellion by pledging to vote against Hellawell. | Before the sparsely attended meeting at Sports Direct’s head office in Shirebrook, Derbyshire, investors had set the scene for a rebellion by pledging to vote against Hellawell. |
| Last year, more than half of independent shareholders voted against the chairman, forcing the company to hold a second vote in January after which he was kept in place only with the backing of Ashley, who now owns more than 60% of Sports Direct shares. | Last year, more than half of independent shareholders voted against the chairman, forcing the company to hold a second vote in January after which he was kept in place only with the backing of Ashley, who now owns more than 60% of Sports Direct shares. |
| At the annual general meeting, Hellawell defended Sports Direct’s use of zero-hours contracts and said there was no need for an independent review of its working practices. | At the annual general meeting, Hellawell defended Sports Direct’s use of zero-hours contracts and said there was no need for an independent review of its working practices. |
| Asked for an update on a pledge made last year to offer guaranteed hours deals to shopfloor staff, the vast majority of whom currently do not know if they will get any work each week, Hellawell said “a huge proportion of workers are happy to retain the flexibility” of the existing setup. | Asked for an update on a pledge made last year to offer guaranteed hours deals to shopfloor staff, the vast majority of whom currently do not know if they will get any work each week, Hellawell said “a huge proportion of workers are happy to retain the flexibility” of the existing setup. |
| He added: “Zero-hours is still a legal form of employment in this country. I appreciate that a number of unions are against that but while it is still a legal form of employment we will choose it if we wish to continue with that.” | He added: “Zero-hours is still a legal form of employment in this country. I appreciate that a number of unions are against that but while it is still a legal form of employment we will choose it if we wish to continue with that.” |
| The issue was raised by the Labour leader, Jeremy Corbyn, during Wednesday’s prime minister’s questions when he said Ashley should “honour his word” and end zero-hours contacts. | The issue was raised by the Labour leader, Jeremy Corbyn, during Wednesday’s prime minister’s questions when he said Ashley should “honour his word” and end zero-hours contacts. |
| Alex Balacki, a store manager who was recently elected to the board by workers directly employed by the company – not including the majority of warehouse staff who are hired via agencies – said: “The vast majority of people are happy with the contracts and as long as that’s the case it’s working for people.” He said the setup allowed Sports Direct to employ “single mums and students” in a way that would not otherwise be possible. | Alex Balacki, a store manager who was recently elected to the board by workers directly employed by the company – not including the majority of warehouse staff who are hired via agencies – said: “The vast majority of people are happy with the contracts and as long as that’s the case it’s working for people.” He said the setup allowed Sports Direct to employ “single mums and students” in a way that would not otherwise be possible. |
| At the meeting a series of investors asked for an update on a report into the treatment of workers carried out by the company’s lawyers last year. | At the meeting a series of investors asked for an update on a report into the treatment of workers carried out by the company’s lawyers last year. |
| A year ago, independent shareholders backed a resolution calling for an independent review of corporate governance and working practices. Sports Direct did promise to implement that review but later said it would be carried out by the law firm RPC, which has worked closely with the company for some time. | A year ago, independent shareholders backed a resolution calling for an independent review of corporate governance and working practices. Sports Direct did promise to implement that review but later said it would be carried out by the law firm RPC, which has worked closely with the company for some time. |
| Asked if he would commit to a truly independent review, Hellawell said: “If there’s a problem we address that problem and work through that problem. We don’t see the need for an outside body to come in and look at this organisation at the moment.” | Asked if he would commit to a truly independent review, Hellawell said: “If there’s a problem we address that problem and work through that problem. We don’t see the need for an outside body to come in and look at this organisation at the moment.” |
| A spokesman for the Unite union, which has been campaigning for better workers’ rights at Sports Direct, said the vote was closer than expected because the company had been buying back shares. “Promises have been broken regarding the treatment of workers and issues around corporate governance persist. The board and the chairman need to heed the message of the vote and clean its act up,” Unite said. | A spokesman for the Unite union, which has been campaigning for better workers’ rights at Sports Direct, said the vote was closer than expected because the company had been buying back shares. “Promises have been broken regarding the treatment of workers and issues around corporate governance persist. The board and the chairman need to heed the message of the vote and clean its act up,” Unite said. |
| Ashley Hamilton Claxton, the corporate governance manager of Royal London Asset Management, said: “With Keith Hellawell surviving his second shareholder revolt in a year by the skin of his teeth, we believe that the board should urgently address the long list of governance concerns that have been raised by independent shareholders to help restore confidence in the board.” | Ashley Hamilton Claxton, the corporate governance manager of Royal London Asset Management, said: “With Keith Hellawell surviving his second shareholder revolt in a year by the skin of his teeth, we believe that the board should urgently address the long list of governance concerns that have been raised by independent shareholders to help restore confidence in the board.” |
| Sports Direct’s working practices have been in focus after the Guardian exposed how temporary workers at its depots were in effect being paid below the minimum wage. | Sports Direct’s working practices have been in focus after the Guardian exposed how temporary workers at its depots were in effect being paid below the minimum wage. |
| Revenue and Customs subsequently found that workers were owed backpay but some have yet to receive the money, partly because of a dispute between employment agencies previously used by Sports Direct. | |
| Hellawell said Sports Direct recognised “a concern to pay workers whatever they are owed” but this was “not as easy as it sounds” when dealing via the agencies. “There are discussions between agencies, former agencies and this company,” he said. | Hellawell said Sports Direct recognised “a concern to pay workers whatever they are owed” but this was “not as easy as it sounds” when dealing via the agencies. “There are discussions between agencies, former agencies and this company,” he said. |
| At Berkeley Group’s annual meeting in Cobham, 16% of shareholders voted against the housebuilder’s remuneration report. The company handed its boardroom £92m in long-term share bonuses for 2016, in one of the biggest executive payouts ever in the City. | At Berkeley Group’s annual meeting in Cobham, 16% of shareholders voted against the housebuilder’s remuneration report. The company handed its boardroom £92m in long-term share bonuses for 2016, in one of the biggest executive payouts ever in the City. |
| Berkeley’s chairman and founder, Tony Pidgley, received £29m while the chief executive, Rob Perrins, made £28m after beating targets in a long-term incentive plan drawn up in 2011. In 2015, Berkeley’s top six executives made £47m between them. | Berkeley’s chairman and founder, Tony Pidgley, received £29m while the chief executive, Rob Perrins, made £28m after beating targets in a long-term incentive plan drawn up in 2011. In 2015, Berkeley’s top six executives made £47m between them. |
| The London luxury home builder defended the latest payout as “pay for performance” but halved the value of the 10-year incentive scheme last December. | The London luxury home builder defended the latest payout as “pay for performance” but halved the value of the 10-year incentive scheme last December. |