JD Sports clears itself of warehouse 'prison' claims
Retailer says independent report backs up its assertions that Channel 4 News expose was not 'balanced'
JD Sports's own independent investigation into working conditions at its Kingsway warehouse in Rochdale has cleared the company of wrongdoing, says the BBC.
It asked consultancy Deloitte to carry out a review following a Channel 4 News expose last year, which alleged that staff were subject to a "three strikes" rule that could see them fired for minor infringements such as taking too long in the toilet.
Channel 4 also highlighted a high number of hospital callouts, suggesting staff went to work when they were to avoid taking time off.
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In addition, there were suggestions that workers could effectively be paid less than the minimum wage due to extensive after-hours searches.
One employee said on video that working at the facility was "worse than prison".At the time, JD Sports said it was "disappointed and concerned" at the footage but insisted it was not an accurate representation of its facility.
Today's report from Deloitte "bears out what we said in the first place", said the retailer.
It added that the "allegations did not represent a balanced characterisation of working practices at Kingsway".
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Chief executive Peter Cowgill said: "I think if you take a very, very small minority [of cases], then the tone sometimes could have been improved, but overall... people are staggered by the standards in that facility."
Similar allegations at rival Sports Direct led to a public furore, coincided with a massive drop in sales and have ultimately led to widespread reforms and a promise to repay £1m to staff.
However, JD Sports has not seen any ill-effect in sales, releasing annual reports that showed revenue rose 31 per cent to £2.4bn in 2016 and that profit jumped 81 per cent to £238m, says Sky News.
JD Sports: 140 warehouse workers hospitalised in four years
30 January
At least 140 people were taken to hospital following ambulance call-outs to JD Sport's warehouse in Rochdale in the past four years, The Guardian reports.
A Freedom of Information (FoI) Act request by the paper revealed emergency services were dispatched to the site 166 times between 2013 and 2016, with a person taken to hospital as a result on 140 of those occasions.
That's almost exactly the same run-rate as Sports Direct racked up in 2013 and 2014, when a similar FOI request found 76 hospitalisations in two years.
A spokesperson for JD Sports said: "Health and safety is a high priority and JD have invested heavily in, and are proud of, health and safety at the Kingsway facility, evidenced by our four star for occupational health and safety compliance from the British Safety Council."
The company added that the hospital call-outs peaked at 60 in 2014 and decreased to 44 and 41 in 2015 and 2016. With 1,500 workers on site, the total was "proportionally very low", said the spokesperson.
However, the news adds to the pressure on JD Sports over working practices at the Kingsway site, which was the subject of a Channel 4 News expose last month.
During the report, agency employees said they were subject to a "three strikes" dismissal policy, with sanctions imposed for infractions such as "being caught with chocolate" or "attitude".
Extensive searches that could add up to 30 minutes on to a shift also meant workers were paid less than the minimum wage rate.
JD Sports said it was "deeply concerned" at the footage, but insisted it was not an accurate reflection of its culture.
A similar set of allegations levelled at rival Sports Direct last year led to a highly critical investigation by MPs and the company's share price crashing.
Sports Direct admitted the minimum wage breaches and agreed to a £1m back-pay deal. It has also changed its policy on searches and disciplinary procedures, which allowed for six "strikes".
JD Sports warehouse 'twice as bad as Sports Direct'
15 December
JD Sports has been accused of operating working conditions that are "twice as bad as Sports Direct" and "worse than a prison", following an investigation by Channel 4 News.
Undercover reporters were told by staff at the Kingsway warehouse in Rochdale the retailer applies a "three strikes and you're out" disciplinary policy, with strikes awarded for minor infractions such as "being caught with chocolate" or "attitude".
Agencies supplying staff to rival Sports Direct's warehouse were heavily criticised for operating a similar procedure, under which staff could be dismissed for amassing six strikes.
“It's twice as bad as it was at Sports Direct, it's as simple as that," said Labour MP Iain Wright, the chairman the business, innovation and skills select committee.
Also similar to the furore surrounding its main rival, JD Sports is accused of subjecting staff to searches at the beginning and end of shifts that can add up to 30 minutes to their day, for which they are not paid.
As they are contracted at the national living wage rate of £7.20 per hour, this means many employees are effectively not receiving the minimum pay guaranteed by law.
Sports Direct was found to have done much the same and eventually agreed a £1m back-pay deal, which unions claim still left some staff out of pocket. The firm has since changed its policy to ensure searches are quicker and that staff are paid.
But the allegations at JD Sports also extend to general treatment of staff, many of whom are similarly employed by an agency, Assist Recruitment.
Workers told reporters colleagues have been "sacked on the spot", sometimes for as little as sitting down during a shift, and that conditions are "worse than prison".
The company initially refuted the allegations, saying they were "misleading and not an accurate reflection of our culture" and, in a "large number" of case, "plainly untrue".
However, following Channel 4 News's broadcast last night, the company said it was "disappointed and concerned" and will launch an investigation, says the BBC.
A spokesperson said: "We will undertake to conduct a review of all our policies, their communication and implementation at the site, with the clear aim not only to continue the improvement of the facility, but also to think about the future structure of employment at the site."