Sports Direct pledges staff 10 million pound pay rise

After Mike Ashley's Sports Direct failure to pay its staff the minimum wage came to light following a series of investigations into the retailers working conditions was released, Ashley has stepped forward to rectify the situation by pledging a 10 million pound pay rise.

The sportswear retailer has promised to increase pay by approximately 15 pence an hour for all directly employed staff who are reportedly currently on the national minimum wage. This pledge, which is effective from January 1, 2016 onwards, will see 15,000 zero-hour employees and 4,000 warehouse workers in Shirebrook, Derbyshire, benefit from the pay bump at an annual cost of 10 million pounds.

Mike Ashley makes pledge to offer staff a 10 million pound pay rise

The pay increase is said to be part of Ashley's vow to become the best high street retailer in UK - one he vocally pledged to the Mirror. "I’m making a New Year’s resolution pledge – and I’m deadly serious. I want to see Sports Direct become the best high street retail employer, after John Lewis," said the billionaire.

"I realise this is ambitious and it won’t be easy but I believe that as a FTSE 100 or even 250 company we have a responsibility to set a high moral standard." The pay increase will be effective in addition to the new 7.20 pound an hour national living wage when it is effective next year April, which means that those over the age of 25 will earn 7.35 pound an hour.

"We’re putting our money where our mouth is and have notified the City we will be spending 10 million pounds ensuring all employees are above the minimum wage," added Ashley. "I want the Mirror to hold my feet to the fire and ensure we don’t slip up – and if we do, I want to hear about it."

Ashley's revelation comes not long after Sports Direct was heavily criticized by unions and MPS over its failure to pay the minimum wage and other employment conditions, such as the extreme use of zero-hour contracts. Although Ashley defended the company's use of zero-hour contracts, he previously pledged to launch a personal review of Sports Direct employment practices.

Photos: Sports Direct and Wikipedia