Sports Direct founder questioned over exploitation allegations
Summary
TLDRBillionaire tycoon Mike Ashley admitted that Sports Direct was paying workers below the minimum wage due to lengthy security checks. An undercover investigation led to an HMRC inquiry. Union Unite submitted a dossier detailing a bullying culture and poor working conditions, likening them to a 'gulag'. There were 110 ambulance call-outs at the Derbyshire warehouse, with 50 classified as life-threatening. Ashley faced criticism for a zero-hours contract culture, with 79% of staff on such terms. He acknowledged the need for change but was noncommittal. Allegations of sexual harassment were also raised, prompting Ashley to accept responsibility and promise improvement.
Takeaways
- 💼 The billionaire tycoon is accused of failing to pay his workforce adequately, with some workers receiving as low as six pounds per hour.
- 🚨 An undercover investigation revealed that due to security checks, workers were effectively being paid below the minimum wage.
- 🔍 HMRC is conducting a formal inquiry into the company's practices, following the revelations from the investigation.
- 🏭 The company culture at Sports Direct has been likened to a 'gulag', with allegations of bullying and poor working conditions.
- 🚑 There have been 110 ambulance call-outs at the Derbyshire warehouse in three and a half years, with 50 classified as life-threatening.
- 🤰 In one extreme case, a woman gave birth in a toilet, highlighting the pressure and lack of support for employees.
- 📉 The company's 'six strikes and you're out' policy on absenteeism is criticized for creating a high-pressure environment.
- 🛍️ Sports Direct is known for its zero-hours contracts, with 79% of its staff employed on this basis.
- 🕒 The company has a strict policy on tardiness, where being a minute late can result in a 15-minute penalty.
- 🚫 There are allegations of sexual harassment against women at Sports Direct, which the company needs to address.
- 📉 The founder, Mike Ashley, acknowledges that the company may have outgrown his ability to manage it effectively.
Q & A
What was the issue with the billionaire tycoon's workforce payment?
-The billionaire tycoon, Mike Ashley, admitted that his company, Sports Direct, was effectively paying workers below the minimum wage due to security checks that extended working hours.
What was the legal minimum wage at the time of the scandal?
-The legal minimum wage at the time was six pounds seventy an hour.
What was the undercover investigation's finding regarding Sports Direct's working conditions?
-The undercover investigation found that working conditions at Sports Direct were likened to a gulag, with allegations of bullying and an unusually high level of accident reports.
What was the 'six strikes and you're out' policy mentioned in the script?
-The 'six strikes and you're out' policy referred to Sports Direct's strict absenteeism policy, where even sickness and taking time off for having a baby counted against staff.
How many ambulance call-outs were there at the Derbyshire warehouse over the reported period?
-There were 110 ambulance call-outs at the Derbyshire warehouse over the last three and a half years, with 50 classified as life-threatening.
What was the situation regarding zero-hours contracts at Sports Direct?
-Seventy-nine percent of Sports Direct's staff were employed on zero-hours contracts, with only 200 people employed directly at the warehouse and 3000 through an agency.
What was Mike Ashley's response to the allegations of a zero-hours culture?
-Mike Ashley acknowledged the issue and mentioned that Sports Direct was reducing the percentage of staff on zero-hours contracts.
What was the company's policy regarding lateness?
-If an employee was a minute late, they had to work an additional 15 minutes without pay.
What were the allegations about the treatment of women at Sports Direct?
-There were allegations of women being targeted sexually at Sports Direct.
How did Mike Ashley respond to the sexual harassment allegations?
-Mike Ashley acknowledged that there probably was sexual harassment happening at Sports Direct and stated that the company needed to improve.
What was the overall impact of the scandal on Sports Direct's public image?
-The scandal led to public scrutiny and a focus on the delivery of Mike Ashley's promises to improve conditions at Sports Direct.
Outlines
💼 Sports Direct's Wage Scandal
The paragraph discusses the scandal involving Sports Direct, a company led by billionaire Mike Ashley, where workers were allegedly paid below the minimum wage due to extended security checks. The company's culture is criticized as being akin to a 'gulag' with bullying and high-pressure policies, leading to numerous accidents and even life-threatening situations. The company's zero-hours contract policy is highlighted, with almost eighty percent of staff on such contracts. Ashley acknowledges the issues and hints at potential changes, though he is noncommittal about specific reforms.
Mindmap
Keywords
💡Billionaire Tycoon
💡Workforce
💡Minimum Wage
💡Undercover Investigation
💡HMRC
💡Union Unite
💡Zero-Hours Contract
💡Absence Policy
💡Ambulance Call-Outs
💡Sexual Harassment
💡Tardiness
Highlights
Billionaire tycoon accused of failing to pay workers minimum wage.
Workers were paid £6.50 per hour instead of the legal minimum of £6.70.
Mr. Ashley admits to unpleasant surprises regarding company practices.
Security checks at Sherbrooke added significant time to staff working hours.
HMRC launched a formal inquiry into Sports Direct's pay practices.
Union Unite submitted a dossier detailing a bullying company culture.
Work conditions at Sports Direct likened to a gulag.
Mr. Ashley acknowledges a six-strikes policy on absenteeism.
High levels of accidents reported at Derbyshire Warehouse.
110 ambulance call-outs in the last three and a half years.
50 ambulance call-outs classified as life-threatening.
A woman gave birth in a toilet at the warehouse.
Sports Direct employs a fifth of all zero-hours contracts on the high street.
Mr. Ashley is accused of a zero-hours culture.
79% of staff are employed on a zero-hours basis.
Mr. Ashley suggests reviewing the makeup of full-time and zero-hour contracts.
Company's draconian response to tardiness criticized.
Allegations of sexual harassment at Sports Direct.
Mr. Ashley admits that the company may have outgrown his ability to manage.
Public scrutiny now focuses on the delivery of Mr. Ashley's promises.
Transcripts
my cash lead the billionaire tycoon and
then there's his workforce some of whom
he's failed to pay even six pounds
seventy an hour
caelum high sell him cheap but behind
the cheery humming there's been a
scandal brewing about the culture of
Sports Direct I really am NOT enjoying
this
and today came the admission do you
accept that the company was effectively
paying workers below the minimum minimum
wage on that specific point for that
specific bit of time yes some things
have come as a bit of an unpleasant
surprise yes could you tell the
committee what those unpleasant
surprises are first thing that I looked
at was the bottling and that was that
wasn't our best every day mr. Ashley is
referring to his security checks at
Sherbrooke that were adding so much time
to staff working hours that they were
effectively being paid six pound fifty
an hour rather than the legal minimum of
six pounds seventy the results of the
undercover investigation have led to a
formal inquiry by HMRC confirmed for the
first time by mr. Ashley today but it's
not just pay union Unite today submitted
an explosive dossier pack for details
about a company culture full of bullying
where work conditions were likened to
that of a gulag these are conditions
that are just unacceptable in 21st
century Britain and if you don't stop it
here of course the problem that you get
is that this then extends itself across
the economy the root of the problem is
the six strikes in your out policy on
absenteeism it's a bigger asleep it's
sickness and even taking time off to
have a baby
count against staff which has created a
powder keg of pressure sparking an
unusually high level of accident reports
at the Derbyshire Warehouse at the
center of allegations there have been a
hundred and ten ambulance call-outs in
the last three and a half years 50 have
been classified life-threatening five
involve difficulties in pregnancy and in
one case a woman gave birth in a toilet
there will be things in a company that
size that do happen that shouldn't
happen I didn't build Sportster exports
direct film link you understand it's not
having going out one day and you've got
a tiny little inflatable and you're in
control and the mixed wake up not
morning and you're an oil tanker Mike
Ashley stands accused of a zero-hours
culture in fact one fifth of all zero
hours on the high street or through
Sports Direct altogether seventy nine
percent of his staff are employed on
that basis with just two hundred people
employed directly at his warehouse and
three thousand through an agency and are
reducing the percentage of staff on zero
hours some of our top people have come
from the zero contract employment oh
that sounds positive would I think that
is a reasonable thing that you're saying
would I think sports direction be able
to review that without me and at least
make the easy first little step so is
that a yes will there be a change in the
makeup of full-time in zero hour
contracts about sympathy but I'm not
sure so that's a no then and he was also
pulled up on the company's draconian
response to tardiness if you were a
minute late you've got 15 minutes paper
you asked me what I think I think it's
unacceptable you asked me what I think I
think it's unacceptable if I thought it
was acceptable I wouldn't change it then
there were the allegations about women
being targeted sexually and the response
very much in the unique ashley style are
you absolutely sure you can sit here and
say those there's no what you'll call
sexual than in the office harassment
happening in sangs bruce it differences
i think there probably is and sports
direct therefore has to pull its socks
up simple as that fellas so you're
accepting them as lobby well a lot of
it's gone to you yeah you've created a
lot of well you've done something
absolutely remarkable do you think your
company is outgrown your ability to
probably a long time ago quickly added
to do that that's gonna guarantee we get
a better income result so a family
getaway right that will help with maybe
the words I think yes even when he makes
a mistake Ashley and master of playing
the crowd he left Parliament having done
the same with MPs to watch him is to be
beguiled but for Sports Direct the
problems haven't just disappeared with
public scrutiny now zeroing in on the
delivery of his promises
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