Day 137 - 19 Jun 95 - Page 10
1 and systems, our rewards and recognition programmes,
2 providing a great deal of consulting advice. There is also
3 an area that is more in tune with, perhaps, the Labour
4 Relations area, but I am not sure how you would define it.
5 I would call it compliance work.
6
7 There are various laws that govern the hours of work,
8 employment terms and conditions -- that is apart from the
9 union area that we were previously talking about. So,
10 there is that area, and then there is the union area that
11 I think you called Labour Relations, but I call all of this
12 other compliance work Labour Relations as well.
13
14 Q. Right. It does not matter, we understand what you mean and
15 that is the main thing. Do you have, Mr. Stein, any
16 responsibility for McDonald's operations outside the United
17 States?
18 A. I have a consulting responsibility in the Human
19 Resource area with the approximately, I think, 79 countries
20 outside of the US where we have McDonald's.
21
22 Q. You use the word "consulting"?
23 A. Yes.
24
25 Q. Imagine a wholly owned subsidiary of the Corporation
26 operating a McDonald's business in a foreign country such
27 as this one?
28 A. Yes.
29
30 Q. Which I believe is a wholly owned subsidiary of the
31 Corporation?
32 A. It is.
33
34 Q. How much autonomy do the local McDonald's companies have?
35 A. They have a great deal of autonomy. We are a highly
36 decentralised organisation. We often at times, most often
37 McDonald's is operated by local nationals and they are --
38 it is their responsibility to manage the Company and they
39 do get advice and consultation from folks such as myself,
40 but it is their obligation and duty to properly run their
41 country.
42
43 Q. How far, if at all, do you actually tell them what to do?
44 Take an example -- that is really a rather bald question --
45 suppose there were a confrontation or dispute about
46 unionisation in a foreign country, what input, if any,
47 would the Corporation have into such an event?
48 A. I would advise them of our philosophy. I would give
49 them some recommended courses of action. We would engage
50 in discussion and then it is the Managing Director's
51 decision, though, as to which course he or she will take.
52
53 Q. Do you have any legal power as the Corporation to compel
54 the local company to do what you want?
55 A. No, I do not ---
56
57 Q. Or what you advise?
58 A. -- it would -- there is no legal power. There is
59 merely the power of one's advice, good advice, hopefully.
60
