Over £500m of value wiped off Sports Direct as shares tumble

sportsdirect Over £500m has been wiped off the stock market value of Sports Direct, as their shares dropped by 13%. This is despite a rise in their profits by 25%.

One of the reasons that the value of the company has dipped, is increased criticism over their use of zero hour contracts. An investigation by the Guardian showed that temporary workers at Sports Direct are getting wages that are effectively below the minimum wage.

There's been a number of protests about the way workers are treated at Sports Direct, especially concerning harsh deductions for staff who are just one minute late for work, and there's also searches which are conducted at the end of each shift, for which staffs' time is unpaid.

These searches apparently take 15 minutes, and see staff getting the top of their underwear checked, and the like.

The company said of their results: "A number of issues were raised by shareholders at our AGM which we have addressed, for example the inconvenience experienced by some warehouse workers from the logistics of the security process when exiting the warehouse. Following a review, the process has been streamlined, which has led to a reduction in waiting time."

As for zero hour staff, which a huge portion make up Sports Direct's workforce, they said: "To be clear, no warehouse workers are on ‘zero-hour’ contracts, all have contracted hours with the agencies. In retail, casual workers find the flexibility offered by these arrangements very useful. We comply fully with all applicable legal requirements and will continue to keep these under review."

Basically, the more bad press the company gets, the more their share value is going to take a hit.

The TUC general secretary, Frances O’Grady, in reference to the Guardian's report, said: "It will surprise no-one that Sports Direct is hitting the headlines for the wrong reasons again. All workers should be paid at least the minimum wage for every minute they are required to be on company premises. If the allegations against Sports Direct are found to be true, the government must make sure all their staff receive the full pay they are entitled to."

1 comment

  • Peter T.
    Oh dear. What a pity. Never mind.

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