Day 180 - 31 Oct 95 - Page 64


     
     1        performance guidelines on page 19 and the increases that
     2        are given.
     3        A.  Page?
     4
     5   MR. JUSTICE BELL:  Do you mean the stamp page numbers?
     6
     7   MS. STEEL:  The stamped page numbers, the bundle page number.
     8        It is really just in relation to what you were saying about
     9        and whether or not you feel that they are a substitute for
    10        a decent basic rate, or whatever?
    11        A.  Well, it is hard to comment on whether they are a
    12        substitute for decent basic rate so much as to see whether
    13        the system is likely to achieve its objectives, and, as
    14        I said, I think given the emphasis on team work within
    15        McDonald's, rightly or wrongly -- but that is part of the
    16        culture -- then team work on page stamped 20 it only, it is
    17        one of the five categories (that is job relationships) and
    18        only one of the sub-categories, co-operation.
    19
    20        So, team work is not very well measured.  Maybe that is an
    21        argument.  Secondly, the frequency of the marriage
    22        assessment, page stamped 21, where you are talking about
    23        the new period, page 21 with a stamp on it, under the
    24        heading "Performance Reviews and Pay Increases".  The
    25        paragraph says:  "Once you have successfully completed your
    26        probationary period" -----
    27
    28   MR. JUSTICE BELL:  Yes, I have read it.  Tell me your point on
    29        it, Mr. Pearson.
    30        A.  You -- every four months, that is after 21 days service
    31        ---
    32
    33   Q.   Yes.
    34        A.  -- your performance and pay rate will be reviewed.
    35        Given the labour turnover, how many pay reviews are the
    36        staff likely to go through?  In my submission, very few for
    37        many employees.  Many employees will not be there long
    38        enough to benefit from the review.  As I have already said,
    39        I think the margin, the incentive margin is very slim.  A
    40        good performer, ten pence.  It is not a tremendous
    41        incentive and in percentage terms it is not ten per cent,
    42        and somebody -- some of the better performance measurement
    43        schemes would throw in a higher percentage than that for
    44        your above average achievers.  I mean, that is -- I would
    45        like to say, I think it does not provide a tremendous
    46        incentive.  It does not adequately deal with team work and
    47        the staff turnover problem mitigates against, militates
    48        against a very successful policy here.  That is in my
    49        opinion.
    50 
    51   MS. STEEL:   Sorry, when you say it is not a particularly good 
    52        incentive, do you mean that it is not a very high increase 
    53        or do you mean that people might be likely not to bother to
    54        try and -----
    55
    56   MR. JUSTICE BELL:  He means both.  Ms. Steel, he clearly means
    57        both.
    58
    59   MS. STEEL:   OK.
    60

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