Day 137 - 19 Jun 95 - Page 10


     
     1        and systems, our rewards and recognition programmes,
     2        providing a great deal of consulting advice.  There is also
     3        an area that is more in tune with, perhaps, the Labour
     4        Relations area, but I am not sure how you would define it.
     5        I would call it compliance work.
     6
     7        There are various laws that govern the hours of work,
     8        employment terms and conditions -- that is apart from the
     9        union area that we were previously talking about.  So,
    10        there is that area, and then there is the union area that
    11        I think you called Labour Relations, but I call all of this
    12        other compliance work Labour Relations as well.
    13
    14   Q.   Right.  It does not matter, we understand what you mean and
    15        that is the main thing.  Do you have, Mr. Stein, any
    16        responsibility for McDonald's operations outside the United
    17        States?
    18        A.  I have a consulting responsibility in the Human
    19        Resource area with the approximately, I think, 79 countries
    20        outside of the US where we have McDonald's.
    21
    22   Q.   You use the word "consulting"?
    23        A.  Yes.
    24
    25   Q.   Imagine a wholly owned subsidiary of the Corporation
    26        operating a McDonald's business in a foreign country such
    27        as this one?
    28        A.  Yes.
    29
    30   Q.   Which I believe is a wholly owned subsidiary of the
    31        Corporation?
    32        A.  It is.
    33
    34   Q.   How much autonomy do the local McDonald's companies have?
    35        A.  They have a great deal of autonomy.  We are a highly
    36        decentralised organisation.  We often at times, most often
    37        McDonald's is operated by local nationals and they are --
    38        it is their responsibility to manage the Company and they
    39        do get advice and consultation from folks such as myself,
    40        but it is their obligation and duty to properly run their
    41        country.
    42
    43   Q.   How far, if at all, do you actually tell them what to do?
    44        Take an example -- that is really a rather bald question --
    45        suppose there were a confrontation or dispute about
    46        unionisation in a foreign country, what input, if any,
    47        would the Corporation have into such an event?
    48        A.  I would advise them of our philosophy.  I would give
    49        them some recommended courses of action.  We would engage
    50        in discussion and then it is the Managing Director's 
    51        decision, though, as to which course he or she will take. 
    52 
    53   Q.   Do you have any legal power as the Corporation to compel
    54        the local company to do what you want?
    55        A.  No, I do not ---
    56
    57   Q.   Or what you advise?
    58        A.  -- it would -- there is no legal power.  There is
    59        merely the power of one's advice, good advice, hopefully.
    60

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