THE COMMERCIAL YEAR 2015-16
harassment – as akin to those of a Victorian workhouse; although they might just as easily have compared them to the market practices and lax employment laws which permit Bangladeshi and Vietnamese sweatshops today. Mike Ashley, the billionaire owner of Sports Direct, admitted that the conditions which have persisted on his watch are unacceptable and pledged to make necessary changes, but the case has highlighted serious questions about our wider economic and employment models. In the developing world, the proliferation of sweatshops relies on the abundant supply of cheap labour, as well as a coercive environment in which unions are forbidden and inspection agencies are underfunded. Alarmingly for human rights groups, some of these conditions are once again in evidence in the 21st century United Kingdom, with the rise of zero-hours contracts, job insecurity and continual attacks on trade unions by the government and businesses creating an environment that is ripe for employee exploitation. The goings-on at Sports Direct broke both employment law and human rights legislation, but nonetheless persisted until they were exposed by journalists. Is this an unfortunate but necessary price to pay to compete in today’s global economy, or is a shift in economic priorities and a strengthening of employment rights needed in the so-called ‘gig economy’? What lies ahead? Unprecedented challenges are on the horizon in the short, medium
and longer term. Europe is struggling to deal with the biggest migrations since the Second World War, and the number of people forced to leave their homes will only increase if global temperatures continue to rise at their current rate. Much of the debate in the wake of Brexit is centring on how to create economic growth, as well as the nature of important new trade agreements with the European Union – complicated as that is by the conflict on freedom of movement – and other countries. However, questions about climate change and the need for a green energy revolution that can support the 21st century economy, providing better quality of life for all, remain unaddressed. Today’s trainee lawyers will play a crucial role in attempting to find the answers in the years ahead.
“the unacceptable face of capitalism”. Chairman Frank Field went further on Green: “[His] reputation as the king of retail lies in the ruins of BHS. His family took out of BHS and Arcadia a fortune beyond the dreams of avarice and he’s still to make good his boast of ‘fixing’ the pension fund. What kind of man is it who can count his fortune in billions, but does not know what decent behaviour is?” Green defended his position, arguing that in fact he had put hundreds of millions of pounds into BHS during his ownership; but MPs concluded that the collapse of the business was due to “bad decisions and personal greed”. The case has led to two new investigations into how corporate governance of private companies is regulated and whether there should be more proactive regulation of pension funds. Meanwhile, an undercover investigation by the Guardian and subsequent action brought by trade union Unite revealed appalling employment practices at Sports Direct. MPs likened conditions – including underpayments, fines, refusal of “excessive” toilet breaks, childbirth on shift, harsh discipline and sexual
By Josh Richman
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