Sports Direct International plc issued a lengthy statement Friday defending practices at its warehouses after The Guardian newspaper reported the rapidly growing  sporting goods retailer effectively pays some workers less than the U.K. mandated minimum wage.

In a Dec. 9 article that draws on information two reporters gathered while working undercover at a Sports Direct warehouse, The Guardian reported that Sports Direct employees were:

  • given a list of 802 sports brands they are now allowed to wear while working;
  • overwhelmingly employed through zero-hour contracts that allow employers to hire staff with no guarantee of work;
  • harangued via public address systems for not working fast enough;
  • not paid for compulsory pre- and post-shift searches that can add up to 30 minutes to their work day.

While European Union law does not address the issue, in a case brought against Amazon, the U.S. Supreme Court ruled a year ago that time spent waiting for and undergoing security screening is not compensable working time under the federal wage and hour statute.

In its statement, Sports Direct said it could not have become the UK’s leading sporting goods retailer without respecting its employees and that its billionaire CEO and Chairman Mike Ashley will personally oversee a review of the language used by temp agencies that help staff its warehouses with zero-contract workers.

Zero-hour contracts are used by a significant number of retailers and government agencies in the United Kingdom. Workers hired under such contracts work only when they are needed and called by employers, often at short notice.

Sports Direct said its ‘zero hour’ terms of engagement include holiday pay, and sick pay is payable where the relevant criteria for statutory sick pay are met. Nor do its ‘zero hour’ terms  prohibit a casual worker seeking work from another company.

The company said a significant number of casual workers have moved from ‘zero hour’ terms into permanent employment and developed very successful careers within Sports Direct, including the chief executive, senior head office management, regional managers, area managers, store managers and many more.

–Charlie Lunan