Day 137 - 19 Jun 95 - Page 49
1 A. Some of it is that it is their first job and they move
2 on after obtaining their education. Some of it would be
3 that. There would be a certain per cent that did not like
4 working for McDonald's. I would say that would be a very
5 low per cent.
6
7 Q. We will come to that in a minute as a separate topic, but
8 anyhow dissatisfaction would be one reason?
9 A. Sure.
10
11 Q. Looking at the retail trade in America as a whole and the
12 fast-food catering sector in particular, do you think that
13 the rates of pay at McDonald's are a contributory factor to
14 the turnover or not?
15 A. No, I do not. Our rates of pay are competitive with
16 the industry that we are in. If I might, when I say
17 "industry" I talk about retailing, hospitality and quick
18 service.
19
20 Q. So now I come back to the question I deliberately did not
21 ask you before lunch but I do now. The leaflet which is
22 the subject of this libel action alleges, and it applies to
23 the United States and to the United Kingdom and elsewhere
24 in the world, that McDonald's rates of pay for hourly paid
25 workers are low. What comment do you have about that?
26 A. They are not low. They are very competitive and, as a
27 matter of fact, at the higher end of the competitive scale
28 and that is totally untrue.
29
30 Q. One other question about these turnover figures,
31 Mr. Stein. You may or may not know the answer. If you can
32 give us an intelligent speculation or surmise please do so
33 based on your experience and knowledge. To what do you
34 attribute the fact that these turnover figures have
35 declined in this seven-year period?
36 A. I would hope that it is a reflection of our people
37 practices overall; the fact that people enjoy working for
38 McDonald's, and that we are able to convince them to stay
39 for longer periods than shorter periods.
40
41 Q. Do you think that external economic conditions might have
42 anything to do with it?
43 A. External conditions have some effect on it, but reality
44 is it is not a significant effect. We are able, even in
45 times when there is virtually no unemployment or very
46 little unemployment, we can still attract and retain people
47 very well and experience reasonable turnover as we would
48 see it. So economics in short answer, economics would play
49 a limited factor in it.
50
51 Q. One slight digression, Mr. Stein. As you have that file in
52 front of you can you turn over, please, to the next
53 tab which is 41A. Can I ask you this before we look at
54 these figures. Labour costs, Mr. Stein, the cost of labour
55 is a significant factor in the running of the Company, that
56 is right, is it not?
57 A. It is a factor but it is not the thing that you focus
58 on ----
59
60 Q. I will come to that, but it is a factor which the Company
