Day 006 - 05 Jul 94 - Page 62


     
     1        of that type are required, then I will make them available
              to the parties.  I am the top management link with the
     2        activities day-to-day.  I oversee them.
 
     3   Q.   If in those countries there are negotiations with trade
              unions on wage rates or whatever, would you get to hear
     4        about it eventually?
              A.  Maybe eventually.
     5
         Q.   Did you have an interview with the Financial Times in
     6        September 1987 which quoted you as saying:  "Unions were
              just not necessary at McDonald's", do you remember that?
     7        It is part of the pleadings.
              A.  I remember doing an interview with the Financial
     8        Times, but I assure you the interview was more than one
              sentence.  There would have been a top and a tail to it
     9        which was far more broad in its scope than just that
              statement.
    10
         Q.   But did that statement get included in the interview?
    11        A.  It could have been very much.  You would have to read
              me the before and the after.
    12
         Q.   Did it also state that:  "The unions have a different way
    13        of thinking, and if that starts to spread within
              McDonald's it would be seen in McDonalds' results and
    14        sales"?
              A.  I do not remember saying that, but again I do not have
    15        the interview in front of me.  I would be surprised if
              I would have gone into that kind of depth with an
    16        interviewer.  I certainly would have thought if McDonald's
              had done its job well -- and I think it does -- third
    17        party intervention into the basics of management which
              involves communications, staff welfare, opportunity, being
    18        competitive in the marketplace, if a third party had to
              interject themselves in those regards, I would have and
    19        the company would have failed.  That is why they are not
              necessary.
    20
         Q.   Are those the main concerns of unions, employee welfare --
    21        I cannot remember the other things you said -- what were
              the three things?  Employee welfare?
    22        A.  I talked about, if we had, if a third party had to
              interject themselves in the employee/employee
    23        relationship, we would have failed in our remaining
              competitive in the marketplace, we would have failed in
    24        our basically staying competitive in the marketplace and
              providing a work environment which is safe, proper and
    25        offers opportunity.
  
    26   Q.   Yes.  You are saying that if there are lapses in 
              communications and staff welfare, you would not be doing 
    27        your job properly.  It is that the situation that people
              may be interested in trade unions?
    28        A.  I said we would have failed.
 
    29   Q.   A third party?
              A.  If those are the circumstances we would have failed in
    30        doing our job, yes.
 

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