Day 124 - 10 May 95 - Page 15


     
     1   Q.   The union rates, were they double or treble the Federal
     2        minimum wage, do you remember?
     3        A.  I would not know.  I doubt it would be double or
     4        triple, the Federal, but, to be absolutely honest, I do not
     5        know.
     6
     7   Q.   But it was higher, substantially higher, than the minimum
     8        wage, the union rates?
     9        A.  I would not say that.
    10
    11   Q.   You do not know?
    12        A.  I absolutely do not know, but my best guess is that it
    13        would not be.
    14
    15   Q.   Do you remember Ray Kroc saying:  " The Unions have not
    16        been able to touch us with a 10 foot pole.  Hell, we have
    17        got employees going to football, going to basket, track
    18        events, hockey games.  We have picnics, theatre parties,
    19        soft ball games and on and on"; do you remember that
    20        quote?
    21        A.  I do not remember that quote, but I have had a number
    22        of conversations with him regarding the treatment of our
    23        employees, and I would say that that sounds like something
    24        he might have said.
    25
    26   Q.   I think we asked when you were here before, about the
    27        management consultant firm, A.T. Kearney, who did a study
    28        for McDonald's and made recommendations regarding Personnel
    29        Management techniques.  This was in the early 70s.  Do you
    30        remember that event, that situation, that a study was done?
    31        A.  I remember that they were retained by our Corporation
    32        in the early 70s.  John Cooke, I believe, was the principal
    33        consultant.
    34
    35   Q.   Yes, and he transferred to McDonald's after that?
    36        A.  Yes, and shortly after his work with McDonald's, he
    37        became an employee of McDonald's.  As I recall, to the best
    38        that I can recollect, the firm was retained at the time
    39        that the Company was growing rapidly.  We had made the
    40        decision to greatly increase the number of restaurants that
    41        would develop, both domestically and worldwide, and we
    42        needed to implement people practices, personnel programmes
    43        that were going to support our growth effort and support us
    44        in our development.  We were becoming much more of a
    45        professional company, moving from an entrepreneurial
    46        company to one that needed more professional systems, and
    47        Kearney was able to provide us with the kind of counselling
    48        that we needed at that time.
    49
    50   Q.   So they gave advice to McDonald's on those subjects? 
    51        A.  They gave us advice. 
    52 
    53   Q.   At that time.  They made written reports, did they?
    54        A.  I assume that they probably had summaries for us.  I do
    55        not recall.  I would not have been privy to those written
    56        reports.
    57
    58   Q.   It was around this time, when you were expanding, that the
    59        rap session idea was brought in, was it?
    60        A.  I cannot say that was the case.

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