The billionaire sportswear founder – who apologised for “serious shortcomings” at its Shirebrook warehouse – revealed that he had refused to accept the resignation of chairman Keith Hellawell over the weekend in response to the independent report on its working practices.
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The results of the vote also show a significant backlash against non-executive directors Simon Bentley, Dave Singleton and Claire Jenkins, with over a third of independent shareholders voting against their reappointment.
Mike Ashley, the company’s founder, now owns around 55% of Sports Direct.
His comments came after the retailer said earnings are expected to come in at £300million for the year, down from last year’s £381.4 million.
Italian luxury label Prada reported first-half net profit fell 24.7 percent year-on-year on August 26.
Unite assistant general secretary Steve Turner said: “We should not forget that the abuses which the Sports Direct board now want to take action on would not have been thrust into the public eye if it had not been for the work of Unite”.
The billionaire suggested it would help ensure that the directors are kept in touch with the shopfloor: “That will be a great benefit to Sports Direct, because it is very hard sometimes when you’re not involved with everything going on and not in touch with everything”.
‘This is probably your fault we are in this situation because we can’t talk to you in an open manner. The company has taken a number of steps to address this including ensuring that salaries are at least 15 pence per hour about the minimum wage, and changes to the Kronos timekeeping system so that workers can clock off one minute early without experiencing any wage impact.
The vote means that Sports Direct must hold another vote, in which Mr Ashley’s 55% shareholding will be included, in order for Mr Hellawell to remain as chairman.
At the Select Committee hearing in June, Mike Ashley, founder of Sports Direct, admitted that workers at the retailer’s Shirebrook warehouse were paid below the national minimum wage.
I’ve made a commitment to make a difference and I’m trying so don’t pull me down.”Don’t do the whole showboating thing.
A brash, outspoken and often controversial figure, Mr Ashley is in some ways moulded by the decade in which he founded the sports retail empire.
Standard Life, the biggest shareholder in Sports Direct after Mike Ashley, said it has voted against all non-executive appointments and the remuneration report.
Trade unionists campaigning against Sport Direct conditions were joined in Scotland by young workers who experience zero hours contracts and precarious working conditions throughout service industries such as hospitality.
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Speaking at the AGM, SLI head of stewardship and environmental, social and governance investment Euan Stirling said structural change was needed.
