Unite the Union demands talks with Sports Direct founder, Mike Ashley over the 20,000 zero-hour contracted employees under his employment
Mike Ashley is widely known as the billionaire owner of Newcastle Football Club and founder of the Sports Direct retail empire.
He is famed for being a somewhat controversial character, mainly to do with the business decisions he has made relating to the football club he owns, but he has come under increasing scrutiny over the number of staff employed under zero-hour contracts at his sportswear retail business.
These contracts have received criticism as sometimes the employee could be left with a blank wage slip at the end of each week and are also not entitled to holidays or sick pay. The employee is at the mercy of their employer, expected to work whenever they are required.
Sports Direct has around 20,000 part-time employees, all of which are employed under zero-hour contracts. These employees equate to 90% of the retailers total workforce.
According to data from the Office for National Statistics (ONS), Sports Direct accounts for one in ten of the total number of zero-hour contracted workers in the UK.
However, there have been organisations examining the zero-hour contract in a bid to find out how many people are actually employed under this work arrangement. The findings show that they are much more common than the ONS suggests.
Director of policy at the Resolution Foundation, James Plunkett, said: “These new revelations show again that no one really knows how many workers are on zero-hour contracts – every official estimate seems to have drastically understated the scale of the issue. While it seems to us too early to ban zero-hours contracts, the case for reform is clear.”
Annmarie Kilcline is a regional secretary at Unite the Union, which is the only union recognised by Sports Direct, said she had written to Mr Ashley demanding a meeting.
She said: “We hope Mike Ashley will sit down with Unite to discuss how the treatment of workers at Sports Direct can be improved, after they have made the business such a success.”
Others have voiced concerns over Sports Direct, Ian Murray the shadow business minister said: “We understand that zero-hours contracts have built up because of the flexibility, but to be used across an entire retail establishment is unacceptable.
“This is something Sports Direct should engage with. There is unanimous agreement across all parties that this is unfair for some. It should be there to assist the workforce and not to be abused. The fact they are not commenting is very telling.”
While Murray’s counter part Vince Cable (business minister) also voiced his concerns. He said: "Since 2005 there has been a rise in the use of zero-hour contracts. There has been anecdotal evidence of abuse by certain employers – including in the public sector – of some vulnerable workers at the margins of the labour market.
“While it's important our workforce remains flexible, it is equally important that it is treated fairly. This is why I have asked my officials to undertake some work over the summer to better understand how this type of contract is working in practice today.”
Members of the pressure group 38 Degrees have also written to the sportswear retailer calling for it to offer fixed-hour contracts to its employees. Shoppers have also taken to social media to try and enforce a boycott.
Despite pressure from government and union officials, as well as public outcry, Sports Direct has yet to respond to its critics.
The government has vowed to conduct a review over the summer. Three officials from the Department for Business Innovation and Skills will oversee the investigation.
Zero hour contracts provide little benefit to the employee and there is no certainty of an income. However the number of people employed under this arrangement is surprisingly big.
In a time when any job becomes a precious commodity some have little other option than to settle for a zero-hour contract. Meaning the employee forfeits many basic benefits in the hope of earning an income.
If you are employed under a zero-hour contract and are unhappy about the way your employer is treating you, call EAD’s employment law department.
Our award winning employment law department is on hand to provide you with expert legal advice that can ensure your rights as an employee are protected.
Please call us on 0151 735 1000 and speak to one of our Liverpool employment law solicitors today.
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