Day 140 - 22 Jun 95 - Page 35
1
2 Q. You talked yesterday about McCale management and going
3 through their records to see whether minors were ---
4 A. That is correct.
5
6 Q. -- working too many hours. How would you be able to make
7 those checks ---
8 A. OK.
9
10 Q. -- if a manager or owner/operator was not keeping payroll
11 records?
12 A. They do keep payroll records, and the reason that --
13 everybody keeps payroll records, if that is your question.
14 They do it in different forms: computers, manual. They
15 all have to keep payroll records. They all have to pay
16 their employees.
17
18 Q. But you are saying you do not have a right to look at any
19 of those records to check the hours that people have been
20 working?
21 A. Legally speaking, if the operators rejected our
22 request, my understanding, from practice, is that they
23 would be in their right. They do not have to submit it to
24 us. As a matter of practice, except in rare instances,
25 they will submit it to us upon request.
26
27 Q. Do they not have to show to you that they are conforming
28 with laws, the relevant laws?
29 A. They have to obey the laws, but they do not have to
30 provide documentation to do that. They are obligated to
31 comply with our laws.
32
33 MR. MORRIS: It is a condition of the franchisee agreement you
34 have in America that the franchisee obeys the laws; is that
35 correct?
36 A. That is correct.
37
38 Q. It is also a condition that "McDonald's shall have the
39 right to inspect and/or audit franchisees' accounts, books,
40 records and tax returns at all reasonable times to ensure
41 the franchisees are complying with the terms of the
42 franchise" -----
43
44 MR. JUSTICE BELL: Just pause a moment. I think he should see
45 the document. I am not saying you are not reading it
46 accurately, but it is much easier for a witness to follow
47 if it goes beyond three or four words. So if you look in
48 yellow X again, tab 4, behind your first statement.
49 A. This is X?
50
51 Q. Yes. Look in divider 4, please.
52 A. OK.
53
54 MR. MORRIS: It is page 5 of the document.
55
56 MR. JUSTICE BELL: Just let us find it. After the Pantry
57 Franchise Ireland document, there is another one.
58 A. With the letter B at the top?
59
60 MR. JUSTICE BELL: B in the top right-hand corner. Mr. Morris
