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TUC: Record-breaking shareholder uprising against Sports Direct management over working conditions​

More than half (53%) of independent Sports Direct shareholders yesterday (Wednesday) voted against management and called for an independent investigation into how Sports Direct treats its workers.

Shareholder support for resolution 19, which was tabled by the Trade Union Share Owners (TUSO) group and Islington Council, was the highest on record for an employment-related resolution in the UK.

Those who voted in favour included investors and fund managers with no previous history of supporting employment-related resolutions.

10% of independent shareholders abstained, making a total of 63% who failed to support management on the resolution.

Despite this vote, the resolution will not pass, due to Mike Ashley’s ownership of roughly 55% of Sports Direct shares.

Commenting on the results, TUSO Chair Janet Williamson said:

“Today’s shareholder uprising should act as a cautionary tale to other employers. Sports Direct’s reputation has been dragged through the mud and its share price has taken a hammering.

“The company must now commit to holding a genuinely independent investigation into how the company treats its workers. Without wholesale changes to working conditions, Sports Direct risks finding itself back in the dock.

“Hopefully this vote will usher in a new era of investors working with unions to challenge bad employment practices.”

NOTES TO EDITORS:

  • “Independent shareholders” refers to all shareholders other than Mike Ashley, who owns 330,000,000 (roughly 55%) of Sports Direct shares.
  • The full results of yesterday’s votes can be found at: www.investegate.co.uk/sports-direct-intl-/rns/results-of-2016-annual-gen...
  • The Trade Union Share Owners (TUSO) group is a group of investors representing the financial assets of the labour movement, including the TUC staff pension fund, the Unite staff pension fund, the UNISON staff pension fund, and the International Transport Workers’ Federation.
  • The resolution has been filed by investors including the TUC and UNISON staff pension funds, both members of TUSO, and the Borough of Islington Staff Pension Fund and Prospect general fund.
  • Below are votes on shareholder resolutions on employment issues filed at UK companies over the last ten years, of which today’s Sports Direct vote is the highest. Where significant shareholdings are held by company directors, these have been stripped out to give the independent vote.
 

For %

Abstain %

Total not in favour of management %

National Express (2015)

19

5

24

National Express (2014)

16

3

18

Tesco (2009)

10

7

17

Tesco (2007)

8

11

19

FirstGroup (2006)

6

15

21

FirstGroup (2007)

3

7

10

  • All TUC press releases can be found at www.tuc.org.uk
  • Follow the TUC on Twitter: @The_TUC and follow the TUC press team @tucnews
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