 due to concerns of underpaying Hermes courier drivers. Rachel Reeves, the head of the Business){kind=link}
A number of MPs have challenged Sports Direct (LON:SPD) due to concerns of underpaying Hermes courier drivers.
Rachel Reeves, the head of the Business, Energy and Industrial Strategy committee, and Frank Field, the head of the Work and Pensions committee, have both contacted Sports Direct over concerns of mislabeling heavy items to avoid paying the correct delivery cost.
“In the last parliament we heard egregious examples of companies using an essentially bogus classification of self-employment to shirk their responsibilities to those who work for them If this complaint stands up, it represents a new low in actually deliberately underpaying workers for the work they do,” said Feild following concerns raised by a whistleblower in the company.
“We look forward to a speedy response and if there is merit in these claims, an immediate change in working practices and proper compensation for workers who have been subjected to this.”
The whistleblower said Sports Direct persistently mislabelled delivery items.
Field has previously led campaigns in parliament over the controversial gig economy.
Reeves has said there could be a “stitch-up between Hermes and Sports Direct to short-change low-paid couriers in order to boost company profits”.
“It’s deeply concerning to hear reports that the paying of couriers at an artificially low rate could be a persistent practice in arrangements between these two companies,” she said.
“If we can’t rely on company boards and shareholders to stop these sorts of unethical practices, then tougher enforcement measures will need to be considered by the government and parliament.”
Reeves and Field have both said they plan to talk to Matthew Taylor, author of a review of modern working practices, about ensuring fair pay for flexible workers.
Hermes released the following statement:
Last year Sports Direct came under fire for running the company like a Victorian workhouse. This was following a Guardian investigation at the Shirebrook warehouse.