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Frasers Group Denies Minimum Wage Allegations

(RTTNews) - Frasers Group plc, formerly known as Sports Direct International plc., has denied a report by the Guardian, which accused the sports retailer of paying its warehouse workers below the national minimum wage.

"We should add that we consider on advice that it is extremely unlikely that anyone employed by us has been underpaid because of the treatment of unpaid rest breaks," Frasers said in a statement.

Frasers welcomed the Guardian's acknowledgement regarding the improvements made in its warehouses.

Warehouse workers at Sports Direct, the retail chain controlled by the billionaire Mike Ashley, appear to be receiving pay below the national minimum wage, according to Guardian, citing its investigation.

The investigation came almost five years after the Guardian first exposed how the retailer was breaching minimum wage law, which resulted in workers receiving about 1 million pounds in back pay.

MPs found that Sports Direct had treated "workers as commodities rather than as human beings" which resulted in the retailer launching a review of its working practices. The company had pledged to implement a string of improvements in 2016, the report said.

In the latest investigation, the Guardian placed an undercover reporter at one of Frasers' warehouses in late June and early July and found that the workers had unpaid breaks and were effectively being paid 8.20 pounds an hour compared to the legal minimum of 8.72 pounds, the report said.

Workers at the warehouse distribute goods for Frasers Group, the holding company that also includes retailers such as Flannels, Jack Wills and USC.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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