Sports Direct (LON:SPD) has responded to criticism of its working practices and promised that all staff will receive more than the minimum wage from the start of the New Year.
The new policy follows investigations of its use of zero hours contracts and working conditions by both the Guardian and BBC.
In a statement this morning, the firm founded and majority–owned by Newcastle United boss Mike Ashley, said all UK employees and directly engaged casual workers will be paid above the national minimum wage, currently £6.70 an hour.
The group’s wage costs are likely to be £10m higher on an annualised basis as a result of the policy change.
In an interview with the Mirror, Ashley said casual workers in its 400 stores and agency staff at its warehouse operation in Derbyshire would be the main beneficiaries.
According to the paper, workers aged 21 and above will receive £6.85 an hour, and 18- to 20-year-olds will be paid £5.45.
Ashley repeated he wanted Sports Direct to become the best high street employer after John Lewis, adding that as one of the UK’s major listed companies it had “a responsibility to set a high moral standard.”
Sports Direct employs 5,000 staff at its main distribution warehouse in Shirebrook, Derbyshire, the focus of the Guardian investigation, with 15,000 staff on zero-hours contracts working in its stores.
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