Day 151 - 10 Jul 95 - Page 50
1 something I did not come across in Colchester, nor Clacton.
2
3 Q. You said on Friday that a low labour rate might lead to
4 short-term increase in profits, but then it may have an
5 effect on custom as a whole. Is that correct?
6 A. Yes. Broadly speaking, that is true, yes.
7
8 Q. So you obviously cannot get a nought per cent labour rate,
9 because you would have no workers and, therefore, no
10 custom?
11 A. Right.
12
13 Q. So the aim, effectively, is to get the lowest possible
14 labour rate that does not impinge upon sales; that is what
15 good management practice would be?
16 A. No. Good management practice is to do the optimum
17 level, which is, again, I think, when we got into the
18 discussions about my senior supervisor encouraging me to
19 look to build the business. The idea was to -----
20
21 Q. The labour rate got so low in that circumstance that it
22 might have been affecting business?
23 A. Not at all. In that circumstance I was referring to,
24 he meant ---
25
26 Q. Tim Taylor.
27 A. -- the labour was at the optimum level. Part of my
28 business education was to look -- and I think I put it in
29 terms of the after sales service. It does not necessarily
30 bring you in pounds at the beginning, but in terms of
31 loyalty, repeat business, it was something that I was asked
32 to look at and invest time in. But we are not talking
33 about doubling the payroll. I think I may have mentioned
34 maybe one two on shift; somebody in the dining area to help
35 open the doors and help with pushchairs, and so on and so
36 forth.
37
38 Q. If you look at your statement, page 3 of the first
39 statement, at the bottom of page 3:
40
41 "Too low labour would jeopardise the quality of the service
42 to the customer. My senior supervisor Tim Taylor did not
43 praise me if I had too low a labour rate. Indeed, I can
44 recall him stressing that labour should be higher and
45 I should put more people on shifts."
46
47 You still agree with what you wrote there?
48
49 MR. JUSTICE BELL: We went through this on Friday afternoon in
50 cross-examination, did we not?
51
52 MR. MORRIS: Yes. I did not put certain questions which I am
53 going to put.
54
55 MR. JUSTICE BELL: Put them now.
56
57 MR. MORRIS: You are admitting there, are not you, that the
58 problem is not low labour rate, but too low labour rate so
59 that it starts to affect sales?
60
