Tycoon is savaged over pay
THE boss of Sports Direct was yesterday accused of subjecting staff to ‘Victorian’ conditions as he admitted some are paid below minimum wage.
Mike Ashley, who was appearing before the Business, Innovation and Skills Committee at Westminster, faced a series of allegations about ‘workhouse’ conditions at his firm’s warehouse in Derbyshire, as it emerged one woman gave birth in a toilet as she was scared of losing her job if she didn’t go to work.
In just over two years, 110 ambulances were called for employees – with 50 classed as ‘life-threatening’ call-outs.
The tycoon – who is a Rangers shareholder – described his company as ‘a victim of its own success’ as he admitted employing too many temporary staff.
THE boss of Sports Direct was yesterday forced to admit paying some staff less than the minimum wage – and accused of subjecting them to ‘Victorian’ conditions.
in an extraordinary exchange with MPs, Mike Ashley revealed that tax office officials are investigating claims the firm has short-changed hundreds of workers.
the tycoon also faced a series of other explosive allegations about the ‘workhouse’-like practices at its notorious Shirebrook warehouse in Derbyshire.
incredibly, he described his firm as ‘a victim of its own success’ while admitting it employed too many temporary staff. Claims against the company include:
Female workers referred to as ‘fresh meat’ and subjected to sexual harassment by managers
A pregnant woman who gave birth in a warehouse toilet because she was scared of losing her job if she did not go to work
110 ambulances called out for warehouse staff in just two years, with 50 callouts classed as ‘life-threatening’
Staff fined for turning up for work just one minute late
Low paid workers without a bank account forced to pay £10 to get salary paid onto a pre-paid card, and then charged £10 a month
Staff axed for ‘offences’ including wearing branded clothes, talking too much and spending too long in the toilet.
A probe was launched by the Commons business innovation and skills committee following revelations that staff were too frightened to call in sick because they feared losing their jobs.
Other practices, including the use of controversial zero-hours contracts and payment procedures, are also being investigated.
More than 3,000 staff at the facility were subjected to an extraordinary regime of searches and surveillance. Employees were frisked when they finished work, causing delays of 15 minutes or more for which they were not paid.
Appearing before the Commons
‘Arrogance and contempt’
committee yesterday, Mr Ashley admitted that over the course of a week, it meant staff were paid below the minimum hourly wage.
the billionaire – who also owns newcastle United FC and is a shareholder in Rangers FC – revealed that Sports Direct is in talks with HM Revenue and Customs to give back payments to staff. the Guardian, whose undercover reporters exposed the scandal last year, yesterday estimated the pay arrears at £2million.
the minimum wage admission raises the prospect of hefty fines for breaching minimum wage legislation, which can be up to 200 per cent of arrears owed.
Steve turner of trade union Unite told MPs of ‘Victorian’ conditions in the Shirebrook warehouse, comparing it to a ‘workhouse’ or a ‘gulag’.
He said there is ‘arrogance and contempt’ at the highest level, adding: ‘there is no place for 19th century working practices in 21st century Britain.’ Mr turner added: ‘this is a business model that has exploitation at its heart.’
Mr Ashley, who turned up for the hearing with his wife Linda, was repeatedly praised by MPs for being ‘candid’ and ‘generous with his time’. But the notoriously media-shy tycoon has fought for months to avoid giving evidence. turning on the charm yesterday, Mr Ashley has previously described MPs as a ‘joke’ and last month offered to fly members to his warehouse by helicopter to see conditions for themselves. Mr Ashley uses the £4million Agusta-Westland AW109 to travel between his London home and Derbyshire.
He eventually bowed to pressure to attend the Commons after being accused by MPs of ‘having ‘something to hide’.
yesterday he was in a more contrite mood, admitting a number of ‘issues’. He accepted fining staff for being a minute late was ‘unacceptable’. And he said the firm had ‘hopefully addressed’ some problems – including security queues. Asked if he was a kind person, Mr Ashley said: ‘i wouldn’t say i was Father Christmas.’
Addressing one of the most damaging allegations, that female staff were ‘coerced’ into sexual relationships’ by managers, the 51-year-old described bosses as ‘sexual predators’ who need to be ‘dealt with’. He added: ‘they’re repugnant. they’re disgusting.’
in an extraordinary admission Mr Ashley also said the company that allowed him to amass a £2.4billion fortune may have become too big for him to manage after years of breakneck growth.
But he defended zero-hours contracts and the use of agencies to hire workers on temporary deals. Sports Direct, which has 450 stores, has come under fire for keeping most of its 27,000strong workforce on zero-hours contracts. Just 200 staff at Shire-
‘They’re repugnant ... disgusting’
brook are employed directly, with the remaining 3,000 supplied by agencies.
One of his firms owns 49 per cent of Rangers Retail, which sells the Glasgow football club’s merchandise. the retail venture was set up under a previous management board at ibrox but the relationship has been in dispute since the previous regime was replaced by current Rangers chairman Dave King.
the current board has been trying to get out of the contract with Mr Ashley’s company, announcing in March that it intended to break the deal.