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Retail

Sports Direct to elect workers' representative to board as it tries to rebuild battered reputation

Sports Direct boss Mike Ashley is trying to rebuild the retailer's reputation after MPs accused the company of mis-treating employees

Scandal-hit Sports Direct International plc (LON:SPD) is looking to hire a "workers' representative" to attend its board meetings after coming under fire for the ill-treatment of staff.

Founder and chief executive Mike Ashley appeared in front of the parliament last year following an investigation, which revealed the retailer was paying its employees less than the legal minimum.

The company was also accused of sacking employees on a “six strikes and you’re out” policy and docking 15 minutes of pay for being one minute late.

In an effort to rebuild its reputation, Sports Direct today said it has begun the application process for a workers' representative, which will be open to all employees within the group.

Ashley said in a statement: "I have always believed Sports Direct to be a business that was built by the great people who work here. I therefore believe it is important that your voice is heard at the highest level in order to continue to make a positive difference.”

The workers' representative will attend and speak at all scheduled board meetings on the behalf of Sports Direct staff.

The contract will be on a 12-month basis and the group will replace the workers representative each year.

In the first year, the representative will be chosen from the company's retail division. In the following year, the representative will be chosen from the warehouse or head office.

A spokesman for Sports Direct said: "Having explored all options we believe this is the best way to ensure the workers' representative is free to champion the interests of all staff. We see this as a major step forward in bringing about positive change."

Earlier this week Sports Direct warned of further currency headwinds, saying its existing hedging position - which essentially protects it from the euro's fall - was due to expire at the end of April.

In a statement the company said it continues to believe the devaluation of the euro against the dollar will impact on gross margin.

"Our euro/dollar exchange rate is currently hedged at 1.46, which is due to expire at the end of full year 2017 and we currently have no euro/dollar hedging in place for full year 2018."

The group has previously blamed a weaker pound against the dollar for a £35mln hit to earnings, following June’s Brexit vote.

Shares fell 0.21% to 291.70p in early trading.

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