Day 140 - 22 Jun 95 - Page 61


     
     1        is a federally applied location they can use the tips to
     2        apply to the wages, and fall after what the employer pays
     3        below the federal minimum.
     4
     5   Q.   What do you mean, they actually count each week the tips
     6        that someone has got and deduct it off their wages?
     7        A.  That is correct.  They are our obligated to do that
     8        anyway because the internal revenue service in the United
     9        States considers that income and requires employers to keep
    10        track of it.
    11
    12   MR. JUSTICE BELL:  Again, I wonder if you are at cross purposes?
    13
    14   MR. MORRIS:  I cannot believe that ----
    15
    16   MR. JUSTICE BELL:  Is what you are saying this:  They do not
    17        pay, say, $3.50 an hour and then take off that the tips
    18        which they think the employers receive, but in order to
    19        comply with the minimum wage imposed by this state
    20        legislature they can allow for a standard amount which is
    21        assumed to have been received by the employee in tips.  Let
    22        us suppose the minimum was $3.50, and the assumption in the
    23        state was that they get the equivalent of 50 cents an hour
    24        in tips, then it would be lawful for the employer to pay
    25        wages just $3 an hour?
    26   ?
    27        A.  That is correct, my Lord.
    28
    29   Q.   Just as I know in this country the revenue is prepared to
    30        make certain assumptions and you jolly well have to prove
    31        to the contrary before you can take yourself outside the
    32        assumption?
    33        A.  Very similar, my Lord.
    34
    35   MS. STEEL:  There is just one area that I wanted to cover in
    36        relation to this.  When you were giving your
    37        evidence-in-chief you were being asked about the
    38        Philadelphia Unemployment Project Campaign over wage rates
    39        at McDonald's?
    40        A.  Yes.
    41
    42   Q.   And you said they began a campaign within the Philadelphia
    43        area to attempt to organise McDonald's restaurants.  What
    44        were you referring to when you said that?
    45        A.  If you take a look at the various articles that you
    46        have been taking me through you will see "boycott", the
    47        word "organise", and other words suggesting that would be
    48        in their signs.
    49
    50   Q.   But when you said about organising McDonald's restaurants, 
    51        you were talking about the workers, getting the crew to 
    52        take some kind of industrial action or join unions? 
    53        A.  That the boycott was raising issues of organisation,
    54        that is what I am saying.
    55
    56   Q.   Of the workers?
    57        A.  Yes.  Whether or not that actually happened, I do not
    58        know but that is what was on these newspaper articles.
    59
    60   MR. MORRIS:  We do apologise for jumping up but there are so

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