Day 134 - 13 Jun 95 - Page 58
1 profits will then drop. Clearly, economic factors play a
2 part in decisions about pay, but if you take a short-term
3 view, then it will come back to haunt you later.
4
5 MR. JUSTICE BELL: While you have 688 out, that is as from the
6 9th June 1991, and what I have in mind is the New Earnings
7 Survey figures, for instance, although I appreciate they
8 are earlier, but the comparison which was made there
9 between New Earnings Survey figures and McDonald's
10 figures. The McDonald's figures were the basic and the New
11 Earnings Survey's were across the board?
12 A. Yes.
13
14 Q. 688 points out what the maximum rate was as opposed to the
15 minimum for certain jobs. Do you have any idea what
16 proportion of crew, 18 plus, for instance, would be nearer
17 the maximum rate than the minimum or can you just not help
18 on that?
19 A. I do not think I could give any figures on that, no.
20
21 MS. STEEL: There is just one other thing I wanted to ask you
22 about wages: On page 666, which is tab 27 -- this is June
23 1987 -- the second paragraph, halfway through, it says:
24 "This year, for the first time, everyone will receive the
25 increase in their basic pay in addition to any performance
26 reviews they have received e.g. if you were 15 pence over
27 the old rate you will remain 15 pence above the new rate".
28 Can you explain what the position was before the date of
29 this memo?
30 A. I will try, but it is goes back quite a long way. I am
31 re-reading this.
32
33 Q. You were in the Personnel Department by this time?
34 A. Yes.
35
36 Q. Yes.
37 A. But it is still eight years ago and I have not -- that
38 this from, so that is quite a long time. So, this memo is
39 saying that the increase will be passed on and previously
40 -- I am not really sure if I can think -- I can only think
41 that it would have been that the increases may have been
42 only on the minimum rates, but I am --
43
44 MR. JUSTICE BELL: Look ---
45 A. -- Not sure about that.
46
47 Q. -- I think you really should have a bit of help since it is
48 so long ago. There were minimum rates of pay at one time?
49 A. Yes.
50
51 Q. What it is suggested is that if the minimum went up, say,
52 15p between one year and the next, the Wages Council
53 minimum rate, McDonald's did not have to increase everyone
54 in its employ by the increase in the minimum rate because
55 they might already be above the minimum by virtue of
56 enhancements, I think was the word, which was used of their
57 pay during the period they have worked for McDonald's?
58 A. Yes.
59
60 Q. This memo, it has been suggested, meant that for the first
