Day 138 - 20 Jun 95 - Page 29


     
     1        responsibility for the day-to-day running of the
     2        restaurant?
     3        A.  No.  The reason that the Company does this is it puts a
     4        financial stake into it.  We expect the local Managing
     5        Director, our partner, if you will, to provide the
     6        management of the organisation.  We will provide our
     7        consulting services.  We will help he or her get started,
     8        but the reason for the joint venture really is for the
     9        local management to run the operation.
    10
    11   Q.   Would that include such matters as Human Resources and
    12        Labour Relations?
    13        A.  That is correct.
    14
    15   Q.   Is it true or not that four employees were dismissed from
    16        that restaurant?
    17        A.  That is true.
    18
    19   Q.   Is this an event of which you yourself had personal
    20        involvement?
    21        A.  Yes, I did.
    22
    23   Q.   It follows, I think, from what you said that they were
    24        sacked by the joint venture partner?
    25        A.  That is correct.
    26
    27   Q.   On what ground did he purport to dismiss them?
    28        A.  There had been a disturbance in the restaurant that had
    29        become loud, had interfered with customers, and when
    30        I spoke with him -- this had come to my attention; it had
    31        been in the media.
    32
    33   Q.   I understand.  Normally speaking, this would be hearsay, of
    34        course, Mr. Stein, but I ask these questions for a
    35        different reason, that I want to know how the Company in
    36        the person of you reacted to the information that was
    37        given?
    38        A.  OK.  Yes, I became aware of the terminations.  After
    39        the terminations were made I rang him up and advised him
    40        that even though he feels he may have a legal right to
    41        terminate people in these circumstances, that that is not
    42        what he should be doing.  He informed me, if you will, that
    43        he was following the advice of his local labour attorney,
    44        and that I did not know, frankly, because I was an American
    45        lawyer, that I did not know what I was talking about, and
    46        he was going to follow the advice of his local Spanish
    47        lawyer.
    48
    49   Q.   Did he consult you before he dismissed these people?
    50        A.  No, he did not. 
    51 
    52   Q.   Did the Madrid labour court make any finding in this case? 
    53        A.  To my knowledge, they did that the people should be
    54        reinstated.
    55
    56   Q.   Was there a question that the people had wanted to have a
    57        union election?
    58        A.  Yes, they did.
    59
    60   Q.   Did the court say that was not a ground on which they ought

Prev Next Index