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Sports Direct orders further review of working practices

Sports Direct said on Tuesday it had requested RPC, its legal advisers, to lead a further comprehensive review of working practices.

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Conditions at Sports Direct’s Shirebrook warehouse have come into sharp focus after Mr Ashley was grilled by MPs in the wake of a newspaper investigation which revealed that hundreds of staff were being paid below the national minimum wage.

Sports Direct added that its HR operation would be bolstered at the Derbyshire site and supervisors given additional training to ensure “no culture of fear”.

The distribution centre in Shirebrook has been under scrutiny over its “Victorian” working practices and faces increasing pressure from shareholders to improve corporate governance and its treatment of workers.

It had previously admitted that workers were underpaid – blaming an administrative error.

Today’s report said founder Mike Ashley took “ultimate responsibility for any aspects of the working practices that were unsatisfactory”.

Sports Direct has invited the public to attend its annual general meeting on Wednesday September 7.

Sports Direct will axe a “hierarchically and potentially oppressive” six strikes firing policy and offer directly employed staff on zero-hours contracts at least 12 hours’ work per week, according to an external review into workplace practices at the retailer.

There are calls to overhaul its board of directors and launch an immediate independent review into working conditions at its factories.

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The company’s share price, which is 40% down over the year-to-date, was 0.8% higher in early trading on Tuesday.

Sports Direct founder Mike Ashley