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SHAREHOLDERS in zero-hours retail giant Sports Direct should ditch the company’s boss over “serious questions” about the company’s treatment of workers, trade unionists said yesterday.
The Trade Union Share Owners group, which holds a whopping £1.5 billion of assets on the capital markets, said chairman Keith Hellawell should take responsibility for the failures in the company’s management.
The group, which holds shares in Sports Direct, has written to fellow shareholders to urge them to oust Mr Hellawell at the company’s AGM on Wednesday.
Sports Direct came under fire in January when its subsidiary USC collapsed, leaving 88 staff jobless and owing £15.3 million to suppliers and landlords.
TUC general secretary Frances O’Grady said: “Mr Hellawell is ultimately responsible for the performance of his board and must be held accountable for its actions.
“Without root-and-branch changes, Sports Direct’s reputation will continue to be dragged through the mud.”
The letter to shareholders lambasts the boss for his failure to tackle bad employment practices at Sports Direct, seen in the company’s excessive use of zero-hours contracts.
It also flags up his willingness to hold board meetings in spite of the absence of senior figures and refusing to appoint women to the board in spite of an official target.
Unite, which represents workers in Sports Direct, has blasted the company for “workhouse-style” conditions at its Shirebrook mega-warehouse in Derbyshire.
Unite general secretary Len McCluskey said: “There are serious questions about the corporate governance and employment practices of Sports Direct.
“Employment practices combined with weak corporate governance mean a change of chair is needed to lead reform of Sports Direct and avoid lasting reputational damage.”
Ms O’Grady added: “Shareholders and workers both have an interest in reform at Sports Direct.
“We all want to see a successful business, but this success needs to be built on strong governance and good employment practices, not zero-hours contracts.”
The shareowner group is made up of the share funds of the TUC, Unite, Unison and the International Transport Workers Federation.
conradlandin@peoples-press.com
