Workers who were paid under the minimum wage at Sports Direct’s main warehouse will be back-paid.
After having admitted not paying workers the minimum wage, the retail giant has agreed to pay both agency and directly-employed staff what they are owed. They will start being paid in full at the end of the month.
These back-payments date back to May 2012 and will total £1 million, with some employees receiving over £1000.
The trade union Unite reported that 96 per cent of its members employed by Sports Direct – which is currently facing media scrutiny and formal enquiries – had supporrted the deal, which will now also cover the controversial unpaid searches at the end of every shift.
An agency which took over recruitment for the retailer’s Shirebrook warehouse, called Transline, has reportedly refused to pay the whole amount to the 1700 workers it employed.
Unite said Transline were refusing to honour their agreement by only paying half what the workers are owed.
Despite claiming it as a victory for workers’ rights, Unite assistant general secretary Steve Turner said “investors and customers alike should not be fooled into thinking that everything is now rosy at Sports Direct’s Shirebrook warehouse”.
“Transline, one of the employment agencies involved, is disgracefully still trying to short-change workers by seeking to duck its responsibilities,” Turner added.
“Deep-seated problems still remain regarding the use of agency workers with the behaviour of both Transline and The Best Connection further jeopardising Sports Direct’s battered reputation.
“Sports Direct needs to make Transline face up to its responsibilities and seriously confront endemic abuses within its employment agencies.”