Day 302 - 18 Nov 96 - Page 11
1 The point about this chart is that, first of all, the
2 minimum rates on this chart does not include the additional
3 hire rates set by the local States, so the minimum rate
4 that McDonald's is asking us to compare on this chart does
5 not compare like with like and therefore we have to add, we
6 don't know, 30 cents, 50 cents, whatever it is, to the
7 federal minimum rate to get what the national minimum rate
8 effectively is. Bearing in mind, I think we heard evidence
9 that the majority of McDonald's stores will be in certain
10 States with a tradition of setting higher rates.
11
12 MR. JUSTICE BELL: Did I have evidence of that?
13
14 MR. RAMPTON: The only one your Lordship has I think is
15 Philadelphia, where it was $3.70 which was a bit above the
16 federal ----
17
18 MR. MORRIS: I think it was a little bit like the situation with
19 the Attorneys General, where the three biggest States took
20 action on behalf of others, by default, and I got the
21 impression, maybe just an impression, that the States that
22 were the most... What is the word... populated, were
23 likely to be the States -----
24
25 MR. JUSTICE BELL: Well, I do not think that that might figure,
26 but I do not really know, and I am just asking, apart from
27 the matter Mr. Rampton has mentioned, I did not actually
28 have figures for States, did I, around the country?
29
30 MR. MORRIS: I can't remember now. Maybe not. Anyway, we know
31 that there are additional -- this chart was put to
32 somebody, and I cannot remember who now because I just have
33 not had time to look through the bulk of the evidence in
34 this issue, but anyway, that is the first thing about this
35 chart.
36
37 The second thing about the chart is it talks about
38 McDonald's average hourly rates for all crew, which will
39 include of course people on higher rates, such as swing
40 managers, lobby hostesses, maintenance staff. So again,
41 the McDonald's rates are inflated as regards crew people.
42 In fact, if it is comparing minimum with minimum it should
43 really put the starting rates, but it does not do that, for
44 crew. Also, of course, being an average hourly rate, and
45 being such a low average hourly rate, obviously, some
46 people would get above it and some people would get below
47 it, it does not say how it is calculated. But, in any
48 event, it is clear that a large percentage, whatever it is,
49 will be on the minimum, the legal minimum, or within a few
50 cents of it, and I think we heard about Philadelphia, how
51 there was some evidence, I cannot remember now, about how
52 the rate was actually at the official minimum starting
53 rate.
54
55 So that deals with that document, anyway. But, in any
56 event, Beavers agreed the company would not be allowed to
57 pay less and that the vast majority of current workers were
58 getting less than $4.35 per hour. That is day 4, page 56,
59 line 46. He said, "I do not consider three to four dollars
60 to be low pay, it is a fair wage for the worker that is
