Day 138 - 20 Jun 95 - Page 37


     
     1        Mexico City?
     2        A.  Saul Kahan.  He was a joint venture partner.
     3
     4   Q.   When did you first go to Mexico City, as I might say, on
     5        the affairs of Mr. Kahan?
     6        A.  That would have been earlier in 1985, prior to the
     7        opening of his first restaurant.
     8
     9   Q.   What was the purpose of your going there before Signor
    10        Kahan opened his restaurant?
    11        A.  Saul Kahan had received demands from two competing
    12        unions in Mexico long before he ever hired any employees.
    13
    14   Q.   Can you remember the names or acronyms of the two unions?
    15        A.  Yes, I am going to have real trouble with the names but
    16        I can give you their ------
    17
    18   Q.   Let us have their letters then?
    19        A.  OK, one was CROC, C-R-O-C.
    20
    21   Q.   C-R-O-C?
    22        A.  Yes.  That is a national -- there are two national
    23        unions in Mexico and one of them was CROC.  Excuse me,
    24        there are many national unions but there are two that tried
    25        to -- that had contacted Saul Kahan.  One was CROC who I
    26        mentioned; the other is CTM, commonly known as CTM.  Both
    27        had demanded that Mr. Kahan signed an agreement covering
    28        his employees.
    29
    30   Q.   How many employees roughly was it intended that he should
    31        have when he opened?
    32        A.  A couple of hundred for the first store.  It was
    33        anticipated that there would be additional stores ---
    34
    35   Q.   Later on down the road?
    36        A.  Yes, so he needed to hire not just for that store but
    37        for additional ones.
    38
    39   Q.   Tell us, if you know, what is the process under Mexican law
    40        by which a union may gain recognition in a workplace?
    41        A.  OK, there is legal machinery process.  On paper, it
    42        looks somewhat similar, quite similar actually, to the
    43        National Labour Relations Act, different but a process.
    44        The process is that if, in fact, a union wishes to be
    45        represented, wishes for an employer to recognise them as
    46        the representative of their employees, that they file a
    47        petition with the Mexican Labour Board seeking that
    48        recognition, and the process is different than in the
    49        United States, and that is the first step really in the
    50        process, is to put -- when they file their petition, they 
    51        call for what they call a strike date and, that is, they 
    52        set a date and a time where they will go to the store, the 
    53        union will go to the store, and they will approach the
    54        employees who are working and tell those employees that
    55        they wish to represent them, ask them to stop working, and
    56        that, essentially, serves like an election, if you will.
    57        If the employees want to be represented by the union, they
    58        cease working and then the employer is obligated to
    59        negotiate and bargain for a labour agreement.  There is an
    60        election, potential election process -----

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