In December, the Guardian published its investigation of Sports Direct that revealed how temporary workers at the retail chain’s Derbyshire warehouse were effectively receiving hourly rates of pay below the minimum wage.
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It is not clear exactly how many people will receive payouts, but roughly 1,700 staff employed by Transline – an agency used by Sports Direct to provide workers – are thought to be in line for a payout.
As a result, the FTSE 250 retailer will now pay extra wages, worth around £1 million according to reports, to staff who are members of the Unite union.
Transline and The Best Connection supply over 3,000 agency workers to work for Sports Direct in its Shirebrook warehouse.
‘Transline, one of the employment agencies involved, is disgracefully still trying to short-change workers by seeking to duck its responsibilities.
The move will see staff at the firm’s warehouse in Shirebrook, Derbyshire, receive as much as £1,000 in pay back-dated to May 2012.
The billionaire owner of Newcastle United made the admission during a hearing before the Business, Innovation and Skills select committee.
Pay Almost a fortnight after the internal review was announced, Sports Direct reacted again by pledging a 15p an hour staff pay rise at a cost of £10m a year. Sorry for the glitch but just scroll right down and share your opinions!
Sports Direct chairman Keith Hellawell could face a mutiny from the company’s shareholders at next month’s annual general meeting.
Sports Direct has been under increasing pressure from Government and the media due to accusations of unfair and possibly illegal working practices.
The MP for Stalybridge and Hyde told the Press Association: “The whole episode caused serious damage to the company’s reputation”.
“It’s great this part has been corrected and let’s hope it’s the start of the improvements”. The Unite union in partnership with HMRC struck the payment settlement.
The Best Connection declined to comment.
A Transline spokesman said: “We are making all payments required in full compliance with HMRC [HM Revenue and Customs]”. “Our role is to investigate all cases where we believe an employer is not paying its workers the National Minimum Wage (NMW) to ensure those workers receive what they are owed under the law”.
The reports provoked the following responses from the company.
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Turner added: “Mike Ashley and the Sports Direct board should be under no illusions”.
