Day 124 - 10 May 95 - Page 49


     
     1        A.  Well, the system when I was an area supervisor was to
     2        establish a range, a labour range for the crew labour
     3        percentage.
     4
     5   Q.   Percentage of turnover?
     6        A.  Not of turnover, but percentage of the sales dollars
     7        that would be contributed to crew labour, based on the
     8        sales projections, what we had hoped to do in business, the
     9        hours that were needed to open and close the restaurant, to
    10        clean the restaurant, hours that I would, as a supervisor,
    11        would approve the store manager to invest in training of
    12        employees and also to engage in crew meetings.
    13
    14        So when you added up all of those hours, and multiplied
    15        those hours by the average wage, you would now have a
    16        labour percentage, so you would now have a range, plus or
    17        minus, that percentage, in which the store manager and his
    18        staff would shoot at.  In many cases the store manager,
    19        with the help of his assistants would establish that, and
    20        I would review that with him, and we would establish an
    21        agreement as to how many extra hours would be invested in
    22        training, or additional hours would be invested to build
    23        sales at a particular date.  So that is how we would
    24        establish the labour percentage.
    25
    26   MR. JUSTICE BELL:  Before Ms. Steel asks you any more about
    27        that, what is the difference, to your mind, between
    28        turnover and sales dollars?
    29        A.  I look at turnover as being the percentage relating to
    30        the turnover of employees.
    31
    32   Q.   Only.
    33
    34   MR. RAMPTON:  My Lord, it is difficult ---
    35        A.  In McDonald's our -----
    36
    37   MR. RAMPTON: -- they call it sales in America, when we mean
    38        turnover.
    39
    40   MR. JUSTICE BELL:  I can treat them as being the same, it is
    41        just we use one phrase and you use another.
    42
    43   MR. RAMPTON:  That is right.
    44
    45   THE WITNESS:  Now, I understand.
    46
    47   MR. JUSTICE BELL:  You are quite right "turnover" in this case
    48        has being used in relation to employees.  We also talk of a
    49        business's turnover meaning the income it brings in.  So
    50        you stick to sales dollars. 
    51 
    52   THE WITNESS:  Yes my Lord. 
    53
    54   MS. STEEL:  I think that is what threw me on the first question.
    55
    56   MR. JUSTICE BELL:  Anyway, you take it from there, Ms. Steel.
    57
    58   MS. STEEL:  Do you remember roughly what the percentage was?
    59        A.  Well -----
    60

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