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Mike Ashley accountable for Sports Direct's ‘appalling’ work conditions, MP report says

Sports Direct report findings: Founder Mike Ashley must be held accountable for “appalling” working conditions in parts of the business, according to MPs
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Joanna Hodgson
22 July 2016

Sports Direct shares were down earlier following the release of a new damning report by MPs, which said founder Mike Ashley must be held accountable for “appalling” working conditions in parts of the business.

The Business, Innovation and Skills (BIS) select committee said the conditions it referred to were at the retailer’s Shirebrook warehouse and shops.

Shares dipped 2.7p to 259.6p.

The committee said it had heard a series of accounts of worker mistreatment, including staff being penalised for matters such as taking a short break to drink water.

Allegations also surfaced of some workers being promised permanent contracts in exchange for sexual favours.

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Its investigation started after the firm came under fire for alleged Victorian working conditions at the warehouse after an inquiry revealed that a number of Sports Direct’s temporary workers were receiving hourly rates of pay in effect below the minimum wage.

Iain Wright MP, chair of the BIS Committee, said: “For this to occur in the UK in 2016 is a serious indictment of the management at Sports Direct and Mike Ashley, as the face of Sports Direct, must be held accountable for these failings.”

Ashley gave evidence last month and said he had taken some steps to improve conditions at his Shirebrook warehouse and said he had “hopefully addressed some of those issues”.

Wright said: “To Mr Ashley’s credit, when he gave evidence he was open and willing to engage and he is now setting out some of the steps which Sports Direct needs to take to stop these practices recurring.”

The workers at Sports Direct’s warehouse in Shirebrook are not directly employed by Sports Direct, but employed by two agencies, The Best Connection and Transline Group.

A spokesman for Transline Group said: “Transline representatives attended the committee to give a transparent account of our operations at Shirebrook. No incorrect or misleading information was given, and we will respond to the committee on any and all issues raised within the report within the two week deadline stipulated. Transline remains committed to ensuring a safe working environment and fulfilling its duty of care to our employees.”

Sports Direct and The Best Connection did not immediately respond to a request for comment from the Evening Standard.

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