Sports Direct apologies for "serious shortcomings" following review

The board of Sports Direct has apologised for "serious shortcomings" highlighted in a review into its working practices published this morning. The sportswear giant will work to ensure all warehouse employees are paid more than the national minimum wage and that casual retail workers are given guaranteed hours over zero-hour contracts.

The review, which was carried out by one of Sports Direct legal advisers, Reynolds Porter Chamberlain (RPC) following concerning allegations made during a parliamentary inquiry earlier this year, found "serious shortcomings" at the company's warehouse in Derbyshire for which the board "deeply regrets and apologies for."

Sports Direct to offer casual retail workers guaranteed hours and pay warehouse workers more than the National Living Wage following review

The initial review follows on from an expose carried out by the Guardian last year, which showed temporary workers were being given hourly rates below the minimum wage and warehouse workers being subject to "victorian" working policy that included a six strike policy. The six strike policy could see employees be given strikes for taking too many toilet breaks or talking too much, a practice which the review deemed "potentially oppressive."

Sports Direct ends its "six strikes and you're out" policy. These was the list of offences. pic.twitter.com/uXMQPjrxPd

— Joel Hills (@ITVJoel) September 6, 2016

Following the review, the company board has requested the six strikes policy enforced by agencies who supplied Sports Direct warehouse staff be suspended "with immediate effect." In addition, Sports Direct has announced it will offer all of its casual retail staff guaranteed minimum hours instead of offering them a 'zero hour' contract. However, this may not apply to Sports Direct warehouse staff, which tend to be employed via external agencies. But Sports Direct has committed to ensuring that all its warehouse workers are paid above the National Minimum Wage.

The company board asked RPC to initiate a further comprehensive review of the company's working practices over the next 12 months, which uses the initial review as a benchmark in order to identify what additional action is needed and to monitor steps already undertaken. Another report will be presented to the shareholders in 2017.

News of the initial review comes a day before Sports Direct annual general meeting is set to take place, during which billionaire owner Mike Ashley is likely to face wrath from its investors, who are calling for an overhaul of the company's board of directors and the launch of an independent review into working conditions at Sport Directs warehouses.

Photo 1: by Edward Hands, via Wikimedia Commons

Photo 2: via Flickr, credit to: speedpropertybuyers.co.uk