Sports Direct founder questioned over exploitation allegations

Summary

Billionaire 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.