Day 140 - 22 Jun 95 - Page 60


     
     1
     2   Q.   Other employers who also pay low poverty wages; is that
     3        correct?
     4        A.  I disagree with that.
     5
     6   Q.   Would you compare your workers' wages with wages of workers
     7        in other industries apart from catering?
     8        A.  What does that mean?
     9
    10   Q.   Do you compare?  You said you compared----
    11        A.  There are people who earn less and people who earn
    12        more, so what are you asking me?
    13
    14   MR. JUSTICE BELL:  I think it is a question of terminology.
    15        I think what Mr. Morris is meaning to ask you is:  Are your
    16        wages in the same range as that of people who work in
    17        non-catering industries?
    18        A.  Some are, I do not mean to ----
    19
    20   Q.   That is the question?
    21        A.  Some are and some are not, my Lord.  I mean it covers a
    22        range.  There are some below us and there are some above
    23        us.  My Lord, I want to also clarify something I was
    24        mentioning about minimum wage that I thought of?
    25
    26   MR. JUSTICE BELL:  Yes?
    27        A.  We were talking about the States have the right to set
    28        minimum wage and is it higher or lower than the federal and
    29        I do not want to mislead my Lord.  The answers I was giving
    30        you were those that are applicable to McDonald's and to
    31        large companies.  States have a right to and do set wages
    32        below the federal minimum for smaller employers, so that a
    33        small restaurant, if you will, my Lord, would be covered by
    34        the state minimum wage not the federal.  The theory is the
    35        local restaurants not engaged in interest day commerce so
    36        that the ----
    37
    38   MR. JUSTICE BELL:  Are you saying that where there is a federal
    39        minimum wage it only applies to certain operators?
    40        A.  Yes, it would apply to large organisations but not to
    41        small organisations.
    42
    43   Q.   So in that gap a state may impose its own minimum wage?
    44        A.  And they do, my Lord.  Each state does have its own
    45        that applies to small businesses.
    46
    47   Q.   Right and that may be less than the federal minimum wage
    48        which applies to large businesses?
    49        A.  That is correct, my Lord.
    50 
    51   MR. MORRIS:  Most small catering establishments the staff can 
    52        keep their tips, can they not? 
    53        A.  Excuse me?
    54
    55   Q.   Most small catering establishments the staff can keep their
    56        tips?
    57        A.  Let me answer it for you in this way:  Some can, some
    58        do not.  In most cases, however, where they can keep their
    59        tips, the tip off-sets part of the minimum wage and the
    60        employers are allowed to use tips to pay below, even if it

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