This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-36465404

The article has changed 11 times. There is an RSS feed of changes available.

Version 5 Version 6
Sports Direct pay policy unacceptable, says founder Mike Ashley Sports Direct pay policy unacceptable, says founder Mike Ashley
(35 minutes later)
Sports Direct's policy of docking staff 15 minutes pay for being one minute late is "unacceptable", founder Mike Ashley has told MPs. Sports Direct's policy of fining warehouse staff for being just one minute late is "unacceptable", founder Mike Ashley has told MPs.
Mr Ashley also admitted that he had paid workers below the minimum wage, and said he had discovered "issues" with some working practices. Mr Ashley also admitted that he had paid workers below the minimum wage, and discovered "issues" with some working practices, but said he had "hopefully addressed" some of these.
"I've hopefully addressed some of those issues," he said. He confirmed HMRC were investigating the firm over the minimum wage issue.
And he said perhaps the company had become too big for him to manage.
MPs are investigating working practices at the firm's Derbyshire warehouse after a series of allegations.MPs are investigating working practices at the firm's Derbyshire warehouse after a series of allegations.
The firm has been accused of creating a "culture of fear", with a tough disciplinary system, the use of controversial zero-hours contracts and time-consuming staff security searches, leading to staff earning under the minimum wage it is alleged. The firm has been accused of creating a "culture of fear", with a tough disciplinary system, the use of controversial zero-hours contracts and time-consuming security searches, leading to staff earning under the minimum wage it is alleged.
'Culture of fear''Culture of fear'
Mr Ashley, has led an internal investigation into the allegations, but said this was an ongoing process that would "never be complete". "In the warehouse there is a culture of fear," Unite's Luke Primarolo told MPs earlier.
"In the warehouse there is a culture of fear," Unite's Luke Primarolo said earlier.
"People are scared because they are working under a system where they know they could lose their employment at any moment," he added."People are scared because they are working under a system where they know they could lose their employment at any moment," he added.
Unite officials gave evidence ahead of founder Mike Ashley facing MPs. Union officials said the Derbyshire distribution centre operated a "strike system" for misdemeanours where staff were given "a strike" for things such as spending too long in the toilet, excessive chatting or taking a day off sick.
They said the Derbyshire distribution centre operated a "strike system" for misdemeanours where staff were given "a strike" for things such as spending too long in the toilet, excessive chatting or taking a day off sick.
Once an employee had six strikes they were automatically dismissed.Once an employee had six strikes they were automatically dismissed.
"When you have people under that much fear they come into work ill and that creates a significant health and safety risk," said Steve Turner, assistant general secretary of Unite."When you have people under that much fear they come into work ill and that creates a significant health and safety risk," said Steve Turner, assistant general secretary of Unite.
He said workers had likened the conditions to a "gulag", or "labour camp" and described the conditions as "19th century working practices".
Mr Turner said Unite had statutory recognition for just over 200 direct employees at the warehouse, with the other 3,000 staff supplied by agencies.Mr Turner said Unite had statutory recognition for just over 200 direct employees at the warehouse, with the other 3,000 staff supplied by agencies.
Mr Ashley who earlier admitted to problems with some security practices at the firm's Derbyshire warehouse, mainly the time it took for staff to undergo security checks after finishing work, told MPs that bottleneck had now been addressed. Mr Ashley who earlier admitted to problems with some security practices at the firm's Derbyshire warehouse, mainly the time it took for staff to undergo security checks after finishing work, told MPs that the bottleneck had now been addressed.
"The process is in place so that genuinely shouldn't happen. You should be finishing your shift and walk through," he said."The process is in place so that genuinely shouldn't happen. You should be finishing your shift and walk through," he said.
'Difficult year' Mr Ashley admitted that Sports Direct effectively paid staff less than the minimum wage "at a specific time" due to the time consuming searches, but he said this had now been addressed.
Last year the Guardian reported that workers at the sportswear chain's warehouse had been subjected to rigorous searches and surveillance.Last year the Guardian reported that workers at the sportswear chain's warehouse had been subjected to rigorous searches and surveillance.
Peter Linstead, a barrister at Tanfield Chambers and a specialist in employment litigation, said such measures were common in retail and many shops had similar schemes in place. And a BBC investigation found ambulances were called out to Sports Direct's complex at Shirebrook, in Derbyshire, 76 times in two years.
"The real issue is it took a lot of time and staff were not paid for that period of time, according to the allegations," he told the BBC. 'Shocked'
On Monday, in a letter to staff, Mr Ashley said all workers at the firm, including agency staff, were paid at hourly rates above the minimum wage. The Newcastle United owner blamed much of the firm's problems on the firm's rapid growth, saying the internet hadn't existed for the retailer ten years ago.
Six strikes policy In response to Labour's Peter Kyle's question on whether the company had outgrown his ability to manage it, Mr Ashley admitted "probably, a long time ago".
A BBC investigation last year found ambulances were called out to Sports Direct's complex at Shirebrook, in Derbyshire, 76 times in two years. "I can accept the criticism of some of the things that you've said to me today would actually lead me to believe that it's definitely outgrown me... that's shocked me what you've said to me today."
Former workers said some staff were "too scared" to take sick leave because they feared losing their jobs. Mr Ashley also agreed that that he employed too many staff on zero hour contracts, with no guarantee of hours, and said some staff should be transferred to full-time staff.
Sports Direct said at the time it aimed to provide safe working conditions for all. He pledged to implement a number of changes to working practices within 90 days, promising to write to MPs if the time frame needs to be extended.
"You're pushing against an open door," he told MPs.
Shares in Sports Direct have fallen 45% in the past 12 months amid falling sales and a barrage of negative publicity.Shares in Sports Direct have fallen 45% in the past 12 months amid falling sales and a barrage of negative publicity.
Independent retail analyst Nick Bubb commented: "The reason Mike Ashley is normally kept away from the press is that he speaks his mind too freely, so it will be interesting to see if the MPs goad him into letting his guard slip."