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Pressure mounts on Sports Direct over zero-hours contracts Pressure mounts on Sports Direct over zero-hours contracts
(35 minutes later)
Pressure is mounting on Mike Ashley and his Sports Direct empire over its use of zero-hours contracts for part-time employees as the Unite trade union demanded a meeting with the billionaire businessman.Pressure is mounting on Mike Ashley and his Sports Direct empire over its use of zero-hours contracts for part-time employees as the Unite trade union demanded a meeting with the billionaire businessman.
Politicians, campaigners and charities called on the UK's biggest sports retailer to change its policy on using the controversial contracts for 90% of its workforce.Politicians, campaigners and charities called on the UK's biggest sports retailer to change its policy on using the controversial contracts for 90% of its workforce.
Sports Direct's 20,000 part-time employees – all on zero-hours contracts – make up one in 10 of the total number of workers on such contracts across the UK, according to data from the Office for National Statistics.Sports Direct's 20,000 part-time employees – all on zero-hours contracts – make up one in 10 of the total number of workers on such contracts across the UK, according to data from the Office for National Statistics.
However, organisations investigating the impact of the contracts claim the revelations indicate their use is far more widespread than indicated by the ONS.However, organisations investigating the impact of the contracts claim the revelations indicate their use is far more widespread than indicated by the ONS.
James Plunkett, director of policy at the Resolution Foundation, said: "These new revelations show again that no one really knows how many workers are on zero hours contracts – every official estimate seems to have drastically under-stated the scale of the issue. While it seems to us too early to ban zero-hours contracts, the case for reform is clear." James Plunkett, director of policy at the Resolution Foundation, said: "These new revelations show again that no one really knows how many workers are on zero-hours contracts – every official estimate seems to have drastically understated the scale of the issue. While it seems to us too early to ban zero-hours contracts, the case for reform is clear."
Business secretary Vince Cable also voiced his concerns, as his department undertakes a review of zero-hours contracts, with officials reporting back later this year. Business secretary Vince Cable also voiced concern, as his department undertakes a review of such contracts, with officials reporting back later this year.
He said: "Since 2005 there has been a rise in the use of zero-hour contracts. There has been anecdotal evidence of abuse by certain employers – including in the public sector – of some vulnerable workers at the margins of the labour market. Whilst it's important our workforce remains flexible, it is equally important that it is treated fairly. This is why I have asked my officials to undertake some work over the summer to better understand how this type of contract is working in practice today." He said: "Since 2005 there has been a rise in the use of zero-hours contracts. There has been anecdotal evidence of abuse by certain employers – including in the public sector – of some vulnerable workers at the margins of the labour market.
"While it's important our workforce remains flexible, it is equally important that it is treated fairly. This is why I have asked my officials to undertake some work over the summer to better understand how this type of contract is working in practice today."
Sports Direct has been heavily criticised for using the contracts, which do not give workers set hours or shifts, and give them no holiday or sick leave.Sports Direct has been heavily criticised for using the contracts, which do not give workers set hours or shifts, and give them no holiday or sick leave.
Tesco, Asda, Sainsbury's and Morrisons said they do not use zero-hours contracts – as did Next.Tesco, Asda, Sainsbury's and Morrisons said they do not use zero-hours contracts – as did Next.
Another major retail employer, Arcadia – the parent company of Topshop, BHS, Dorothy Perkins, Burton, Evans, Wallis and Miss Selfridge – said it stopped offering zero-hours contracts in 2005 and offered fixed-hours contracts to those still on them.Another major retail employer, Arcadia – the parent company of Topshop, BHS, Dorothy Perkins, Burton, Evans, Wallis and Miss Selfridge – said it stopped offering zero-hours contracts in 2005 and offered fixed-hours contracts to those still on them.
Annmarie Kilcline, a regional secretary at Unite, the only recognised union at Sports Direct, said she had written to Ashley demanding a meeting.Annmarie Kilcline, a regional secretary at Unite, the only recognised union at Sports Direct, said she had written to Ashley demanding a meeting.
She said: "We hope Mike Ashley will sit down with Unite to discuss how the treatment of workers at Sports Direct can be improved, after they have made the business such a success."She said: "We hope Mike Ashley will sit down with Unite to discuss how the treatment of workers at Sports Direct can be improved, after they have made the business such a success."
Meanwhile, thousands of campaigners at pressure group 38 Degrees have written to Sports Direct calling on the company to offer fixed-hours contracts to workers and angry shoppers have taken to Twitter demanding a boycott. Meanwhile, thousands of campaigners at pressure group 38 Degrees have written to Sports Direct calling on it to offer fixed-hours contracts to workers and shoppers have taken to Twitter demanding a boycott.
Ian Murray, shadow business minister for employment relations, called on Sports Direct to address the issues raised and questioned their silence. He said: "It's pretty shocking. We understand that zero-hours contracts have built up because of the flexibility, but to be used across an entire retail establishment is unacceptable. This is something Sports Direct should engage with. There is unanimous agreement across all parties that this is unfair for some. It should be there to assist the workforce and not to be abused. The fact they are not commenting is very telling." Ian Murray, shadow business minister for employment relations9, called on Sports Direct to address the issues raised and questioned their silence.
He said: "It's pretty shocking. We understand that zero-hours contracts have built up because of the flexibility, but to be used across an entire retail establishment is unacceptable.
"This is something Sports Direct should engage with. There is unanimous agreement across all parties that this is unfair for some. It should be there to assist the workforce and not to be abused. The fact they are not commenting is very telling."
The government has promised a review over the summer, conducted by three officials from the Department for Business Innovation and Skills. However, there are fears that not enough resources are available. Plunkett added: "It's vital that the government review of the issue is backed by enough resources and political will to get to the root of the problem."The government has promised a review over the summer, conducted by three officials from the Department for Business Innovation and Skills. However, there are fears that not enough resources are available. Plunkett added: "It's vital that the government review of the issue is backed by enough resources and political will to get to the root of the problem."
Sports Direct declined to comment.Sports Direct declined to comment.