Day 119 - 02 May 95 - Page 42


     
     1   Q.   So it could apply to any store?
     2        A.  Oh, yes.
     3
     4   Q.   Because you did say, in evidence-in-chief, that the long
     5        hours generally applied to large stores.
     6        A.  I think it could apply anywhere.
     7
     8   Q.   Do all your employment policies and procedures, where they
     9        exist, for ensuring that your policies are carried out, do
    10        they apply to your franchisees as much as they apply to the
    11        other stores?
    12        A.  Well, those that are setting out legal requirements
    13        do.  Those that are setting company policy do not.  A
    14        franchisee is an independent businessman.
    15
    16   Q.   Yes, but it is a McDonald's stores is it not?
    17        A.  No, we own the property.  But the business belongs to
    18        the franchisee and he -----
    19
    20   Q.   Yes, but it is part of McDonald's system, is it not?
    21        A.  Yes, it is part of McDonald's system but he dictates
    22        the rates of pay for his crew; how often they get a
    23        performance review.  It is entirely a matter for him.
    24
    25   Q.   What I am trying to say is, assuming they are part of the
    26        McDonald's system, how do you ensure that the standards
    27        which you claim to exist in your stores also apply to
    28        franchisees?
    29        A.  Field Service Department.
    30
    31   Q.   What was that  department - Field Service?
    32        A.  Field Service Department are a dedicated department of
    33        very experienced operational people --  minimum position
    34        supervisor, whose responsibility is to ensure that the
    35        franchised stores adhere to the system. But within that
    36        franchisees has a degree of -----
    37
    38   Q.   Leeway?
    39        A.  Freedom, that is right.
    40
    41   MR. JUSTICE BELL:  I just want to make sure I understand it
    42        correctly.  I understand that the franchisee must abide by
    43        legal requirements, but the trying to avoid overtime, that
    44        is working more than 39 hours a week, would not apply to a
    45        franchisee?
    46        A.  No, he would set his own rules for that one, sir.  He
    47        has to abide by the instructions we lay down on product,
    48        holding time, things like that.
    49
    50   Q.   I understand that. 
    51        A.  When it comes to his employees he sets his own rules, 
    52        as long as he is within the legal requirements. 
    53
    54   Q.   So a franchisee could, if he wanted, pay a basic rate, then
    55        time and a half over 39 hours?
    56        A.  Indeed.
    57
    58   Q.   He would not have to stick to -----
    59        A.  Indeed he could pay more than we do.  To guide them we
    60        issue them with what we are paying both managers and crew

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