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UK – MPs urge Mike Ashley to cut ties with Transline

14 September 2016

UK MPs have called on Sports Direct founder Mike Ashley to cut ties with employment agency Transline, which supplies workers for the sports retailer’s Shirebrook warehouse.

Iain Wright, Labour MP and chair of the Commons Business, Innovation and Skills (BIS) select committee, wrote to Ashley saying he believed employment agency Transline, a member of the REC, was not “candid or credible” about the reasons for its lack of an operating licence from the industry watchdog.

In a letter published by the BIS Committee, Wright stated: "Mike Ashley says he is committed to making conditions better for staff at Shirebrook.

"If he means what he says, he could start by cutting his ties with Transline Group who have not been candid or credible in their evidence to the Business Committee and, as we heard in our evidence sessions, have deducted money from low-paid workers without proper explanation and justification."

"I would expect other companies using Transline Group will want to think seriously about using a company that treats their workers and conducts its business in this way,” Wright said.

In July 2016, BIS published a report condemning Sports Direct’s employment practices and criticized Transline along with employment agency Best Connection. In August 2016, Sports Direct was ordered to pay £1 million in back wages with Transline staff among those set to receive a payout.

“We ask you to think seriously about continuing to use Transline, a company that treats their workers and conducts its business in a way that is inconsistent with your own aspirations for Sports Direct to be on a par with likes of Selfridges and John Lewis,” Wright wrote to Ashley, in a letter published by the BIS committee on Tuesday.

Last week Sports Direct commissioned a review by its lawyers Reynolds Porter Chamberlain (RPC) to review its practices.

"Neither Mike Ashley nor the RPC report into working practices last week have explained why so many people at Shirebrook are employed through agencies, and why they are employed on short-term contracts, other than to reduce costs and avoid legal responsibility for their poor working conditions,” Wright said in the letter.

A spokesman for Sports Direct said: “We have received a letter from the BIS Committee and we will give careful consideration to the contents of the ongoing correspondence. We will not be making further comment at this stage.”

In a statement to Staffing Industry Analysts, Transline said: “We have always provided accurate information to the Select Committee and are focused on supporting Sports Direct in reviewing and implementing recommendations and actions from the Working Practices Report. We will continue to offer clarity and any further information necessary to the Committee. Obviously we find Iain Wright MP’s statements and summary disappointing, however we will prioritise responding to the latest correspondence in a full and concise manner, within the requested timescale.”