forlanssister 3,050 Posted December 15, 2015 Share Posted December 15, 2015 http://www.theguardian.com/business/2015/dec/15/sports-direct-public-accounts-hmrc-investigation?CMP=share_btn_tw Public accounts chief calls for HMRC investigation into Sports Direct Meg Hillier adds to chorus of complaints about retailer’s pay and working conditions and pledges to tackle HMRC on how it enforces minimum wage The chair of the parliament’s public accounts committee has added to calls for an investigation into the low pay and “humiliating and demeaning” working conditions at Sports Direct, following revelations made by the Guardian last week. Meg Hillier, the Labour MP for Hackney South and Shoreditch, said she would be questioning HM Revenue & Customs on how it investigates company compliance with minimum wage legislation during a session in front of her committee in January. “I think there is enough evidence from this good bit of journalism by the Guardian to go in there and I think there needs to be an investigation on that basis,” she told BBC Radio 4’s PM programme on Tuesday. “These staff in these low wage jobs, in a company that sounds as though it is ruled by fear, will be afraid to come forward – and they shouldn’t have to do that in their own right. So I do hope that HMRC are already in there.” Sports Direct have insisted they are acting within the law, but Hillier said: “They may be, they say, sticking to the letter of the law, but certainly they are breaking the spirit of the law and certainly the spirit of being a good employer.” Her comments came after a Guardian investigation revealed how thousands of Sports Direct workers were receiving effective hourly rates of pay below the minimum wage. Undercover reporters found how the retailer’s warehouse workers are subjected to an extraordinary regime of searches and surveillance, while local primary schoolteachers also said that pupils can remain in school while ill – and return home to empty houses – as parents working at Sports Direct are too frightened to take time off work. The reports caused an outcry across the political and business spectrum, with an urgent question filed by the former shadow business minister, Chuka Umunna, forcing the business minister, Nick Boles, to the Commons on Monday. During the debate, MPs called for the company to be investigated. The firm has been branded as a “scar on British business” by the Institute of Directors, slammed by the union Unite for presiding over “Dickensian” working conditions in its warehouse, and rounded on by its major shareholders who have indicated they have begun talks in a bid to force Sports Direct to appoint new non-executive directors. City hedge fund boss Crispin Odey criticised the retailer’s billionaire founder Mike Ashley as someone who is “difficult to house train” while describing his authority over other Sports Direct directors as “dangerous”. Hillier added: “What we have heard from [the Guardian’s investigation] is something that is frankly humiliating and demeaning for the workers involved, whatever Sports Direct say of the legal position … It is really important that this is tackled and we will be asking HMRC questions about enforcement in the new year”. Sports Direct said: “Sports Direct believes it’s in compliance with minimum wage regulations and takes its responsibilities extremely seriously.” Temporary workers at Sports Direct’s Shirebrook warehouse are mostly hired through agencies, which technically employ the staff. Since last week – when Sports Direct also reported disappointing trading figures – almost £600m has been wiped off the company’s value with shares down 14%. With a 55% stake in the company the value of Ashley’s personal fortune has taken a hit of about £313m. HMRC said it could not comment on individual companies but acknowledged that officials were able to launch proactive investigations as well as inquiries in response to specific complaints by employees. A spokesman said: “HMRC investigates all direct complaints made by workers and considers all issues raised which may impact on whether a worker receives the full national minimum wage. Anyone who believes they are not receiving the national minimum wage should contact Acas.” 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,050 Posted December 17, 2015 Share Posted December 17, 2015 http://www.theguardian.com/business/2015/dec/16/sports-direct-labour-demand-government-investigation Sports Direct: Labour to demand government investigation MPs to ask David Cameron for response from HMRC and health and safety executive, following Guardian revelations A group of Labour MPs are to write to the prime minister to demand a cross-departmental investigation into the retailer Sports Direct, following revelations made by the Guardian last week. The latest effort to increase the pressure on the retailer came as the Institute of Directors weighed into the debate over working practices there. Iain Wright MP, chair of the business, innovation and skills select committee, said he would be writing to the group’s billionaire founder, Mike Ashley, to discuss last week’s reports. The new moves follow a Guardian investigation that revealed that thousands of Sports Direct workers were effectively receiving hourly rates of pay below the minimum wage. Undercover reporters found that the retailer’s warehouse workers were subjected to an extraordinary regime of searches and surveillance, while local primary school teachers said pupils can remain in school while ill – and return home to empty houses – as parents working at Sports Direct are too frightened to take time off work. The reports have led to calls from both ends of the political spectrum for HM Revenue and Customs to investigate whether Sports Direct has breached national minimum wage legislation. On Monday, Nick Boles, a minister of state at the Department for Business, Innovation and Skills (BIS), was summoned to parliament to answer an urgent question on the topic filed by former shadow business secretary Chuka Umunna. At a parliamentary meeting of MPs affiliated with the union Unite on Wednesday, attended by shadow ministers Emily Thornberry and Gloria de Piero, the group pledged to “go above the likes of Nick Boles”. Ian Mearns, the MP for Gateshead, said: “There is enough evidence to say that this needs an urgent response. If we write to different arms of the government separately, they will trade one off against the other.” He added that the group would ask David Cameron for a government response that included HMRC and the health and safety executive. In September, a Freedom of Information request made by the BBC revealed that ambulances were called to Sports Direct’s headquarters more than 80 times in two years. Sports Direct said: “Sports Direct believes it’s in compliance with minimum wage regulations and takes its responsibilities extremely seriously.” Temporary workers at Sports Direct’s Shirebrook warehouse are mostly hired through agencies, which technically employ the staff. Meanwhile, the IoD stepped up its own campaign to force changes at Sports Direct, after last week calling the firm “a scar on British business”. In a letter to the Guardian, Oliver Parry, senior corporate governance adviser at the IoD, wrote: “This is not a simple question of more regulation – it must begin with the institutional investors, the large fund managers who have continually backed Sports Direct over the years, irrespective of their governance or working conditions. They must take the up the challenge and engage with the Sports Direct board. If they do not, a wholesale change in the behaviour of the largest sports retailer in the UK is very hard to imagine.” Outside shareholders in Sports Direct have indicated that they will attempt to oust non-executives from the company’s board, a plan that looks more likely to succeed now that the company’s share price has taken a hit. Since last week, when Sports Direct also reported disappointing trading figures, about £620m has been wiped off the company’s value, with shares down around 15%. With a 55% stake in the company, Ashley’s personal fortune has taken a hit of about £340m. The shares fell again on Wednesday, shedding 1.55% to close at 570.5p. The slump means that if a FTSE 100 reshuffle took place now instead of a fortnight ago, then Sports Direct would be relegated from the blue chip index. The next reshuffle will take place in just under three months’ time. Wright said: “I will certainly be writing to Mike Ashley to ask him to respond to these reports and explain how he and Sports Direct are fair and considerate employers who value workers who are employed in the company. “There is a wider issue revealed by the Guardian’s high-quality reporting, in terms of what the future of work, employment contracts and workers’ rights mean in Britain in 2015. This issue is at the core of what we want to do with the select committee in this parliament, namely that we work towards ensuring that we have productive and innovative companies who value their staff. This is something we will want to come back to in the very near future.” 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,182 Posted December 18, 2015 Share Posted December 18, 2015 SD Statement http://otp.investis.com/clients/uk/sports_direct/rns/regulatory-story.aspx?cid=723&newsid=631746 Sports Direct always seeks to improve and do things better, listens to criticism and acts where appropriate. With that in mind, as noted above, the Board has agreed that Mike Ashley shall personally oversee a review of all agency worker terms and conditions to ensure the Company does not just meet its legal obligations, but also provides a good environment for the entire workforce. We expect him to start that work in the New Year. #Pressure 0 Quote Link to post Share on other sites More sharing options...
pete 2,499 Posted December 18, 2015 Share Posted December 18, 2015 SD Statement http://otp.investis.com/clients/uk/sports_direct/rns/regulatory-story.aspx?cid=723&newsid=631746 Sports Direct always seeks to improve and do things better, listens to criticism and acts where appropriate. With that in mind, as noted above, the Board has agreed that Mike Ashley shall personally oversee a review of all agency worker terms and conditions to ensure the Company does not just meet its legal obligations, but also provides a good environment for the entire workforce. We expect him to start that work in the New Year. #Pressure They are really wee angels you know. Big bad people are just making up unfounded stories about them. Big cuddly mike will have a wee look under the covers and let his PR men tell everyone what a great boss he is. People just don't understand how good he is. He is the most misunderstood cuddly boss in the world. AAAAAA! All is lovey dovey at Sports Direct. 0 Quote Link to post Share on other sites More sharing options...
buster. 4,808 Posted December 18, 2015 Share Posted December 18, 2015 (edited) SD Statement http://otp.investis.com/clients/uk/sports_direct/rns/regulatory-story.aspx?cid=723&newsid=631746 Sports Direct always seeks to improve and do things better, listens to criticism and acts where appropriate. With that in mind, as noted above, the Board has agreed that Mike Ashley shall personally oversee a review of all agency worker terms and conditions to ensure the Company does not just meet its legal obligations, but also provides a good environment for the entire workforce. We expect him to start that work in the New Year. #Pressure Trying to arrest the build-up of media scrutiny and pressure with a paragraph of empty words. "Always sees to improve".......the bottom line "listens to criticism".................but ignores it "acts where appropriate"........appropriate is if it improves bottom line "Mike Ashely shall personally oversee a review"......the man who put the present situation in place "a review of all agency worker terms and conditions".....T&C should meet legislation, period / review delays proper payment / will it be backdated "good environment for the entire workforce"..........subjective language that will have a different meaning for SDI than for normal person "We expect him to start that work in the New Year" ......Delay shows lack of urgency (despite intense media attention) Please leave us alone, forget about us and something else will come along to make headlines. But get a group working on a media presentation for the New Year+ to show 'positive change' (which won't be representative of reality). #HabitualOffenders Edited December 18, 2015 by buster. 0 Quote Link to post Share on other sites More sharing options...
MacK1950 2,243 Posted December 18, 2015 Share Posted December 18, 2015 Will be leaving it to then in hope that his staff watch Scrooge but will not give them a happy future, his carpets getting bigger bulges with more being swept under them. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted December 18, 2015 Share Posted December 18, 2015 SD Statement http://otp.investis.com/clients/uk/sports_direct/rns/regulatory-story.aspx?cid=723&newsid=631746 Sports Direct always seeks to improve and do things better, listens to criticism and acts where appropriate. With that in mind, as noted above, the Board has agreed that Mike Ashley shall personally oversee a review of all agency worker terms and conditions to ensure the Company does not just meet its legal obligations, but also provides a good environment for the entire workforce. We expect him to start that work in the New Year. #Pressure Since when did Mike Ashley become an expert in agency worker conditions. Would make more sense for them to initially have an independent review and then make amendments to the T&C based upon that. But then I guess good corporate governance isn't Ashley's strong suit. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,353 Posted December 18, 2015 Share Posted December 18, 2015 SD Statement oversee a review of all agency worker terms and conditions to ensure the Company does not just meet its legal obligations, but also provides a good environment for the entire workforce. We expect him to start that work in the New Year. Are zero hours contracts legal? Yes. Are the brightly lit, freshly painted shops a good environment to work in? Yes. Job done in 30 seconds. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,182 Posted December 18, 2015 Share Posted December 18, 2015 Since when did Mike Ashley become an expert in agency worker conditions. Would make more sense for them to initially have an independent review and then make amendments to the T&C based upon that. But then I guess good corporate governance isn't Ashley's strong suit. Agreed. Despite external pressures, I think this statement is just another exercise in Ashley saying look who's still in charge. 0 Quote Link to post Share on other sites More sharing options...
colinstein 294 Posted December 18, 2015 Share Posted December 18, 2015 I don't think SD actually pays agency workers. SD pays the agency who then pay their workers. That shifts the responsibility on to the agency. At least I think that's the way it works 0 Quote Link to post Share on other sites More sharing options...
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