Mike Ashley slammed for 'exploitation' at MPs' grilling

Sports Direct’s controversial chief Mike Ashley was slammed for “exploitative” working practices as he faced MPs for a gruelling interrogation today.

The Unite union told the Business, Innovation and Skills Committee that the UK should curb zero hours contracts to prevent the likes of Sports Direct abusing workers’ rights.

The union cited legislation in New Zealand, passed this year, which demands employees are given guaranteed hours that are specified and written in a contract.

Unite told MPs the UK “should bring forward measures to regulate precarious and insecure work”.

Sports Direct has been criticised over alleged Victorian working conditions at its Shirebrook warehouse after an inquiry which revealed that a number of the chain’s temporary workers were receiving hourly rates of pay effectively below the minimum wage.

Newcastle United owner and Sports Direct founder Ashley said: “I and the board are proud of our people and what we stand for, and I know that we can move onwards and upwards for the benefit of all our stakeholders.”

The billionaire this week revealed his last-minute decision to attend the committee hearing “in order to defend the good name of Sports Direct”.

But Unite warned in its evidence: “Zero and short hours contracts, short-term contracts and mutations of self-employment are increasingly becoming a feature in the UK economy.

“Unite believes that if left to their own devices, major companies like Sports Direct and employment agencies will continue to stretch the law and engage in what we believe to be wholly exploitative work practices.”

Unite alleged that warehouse workers for Sports Direct, employed via agencies The Best Connection and Transline, are effectively “taxed” if they do not have a bank account for their wages to be paid into.

The firms charge workers a £10 one-off fee for a pre-paid debit card on to which their wages are paid, said Unite, adding that workers are then charged a management fee of £10 per month and 75p for cash withdrawals by the card issuer.

Witnesses from Transline and The Best Connection appeared before the committee. Neither were available to comment on Unite’s claims, while Sports Direct declined to comment.