Day 137 - 19 Jun 95 - Page 49


     
     1        A.  Some of it is that it is their first job and they move
     2        on after obtaining their education.  Some of it would be
     3        that.  There would be a certain per cent that did not like
     4        working for McDonald's.  I would say that would be a very
     5        low per cent.
     6
     7   Q.   We will come to that in a minute as a separate topic, but
     8        anyhow dissatisfaction would be one reason?
     9        A.  Sure.
    10
    11   Q.   Looking at the retail trade in America as a whole and the
    12        fast-food catering sector in particular, do you think that
    13        the rates of pay at McDonald's are a contributory factor to
    14        the turnover or not?
    15        A.  No, I do not.  Our rates of pay are competitive with
    16        the industry that we are in.  If I might, when I say
    17        "industry" I talk about retailing, hospitality and quick
    18        service.
    19
    20   Q.   So now I come back to the question I deliberately did not
    21        ask you before lunch but I do now.  The leaflet which is
    22        the subject of this libel action alleges, and it applies to
    23        the United States and to the United Kingdom and elsewhere
    24        in the world, that McDonald's rates of pay for hourly paid
    25        workers are low.  What comment do you have about that?
    26        A.  They are not low.  They are very competitive and, as a
    27        matter of fact, at the higher end of the competitive scale
    28        and that is totally untrue.
    29
    30   Q.   One other question about these turnover figures,
    31        Mr. Stein.  You may or may not know the answer.  If you can
    32        give us an intelligent speculation or surmise please do so
    33        based on your experience and knowledge.  To what do you
    34        attribute the fact that these turnover figures have
    35        declined in this seven-year period?
    36        A.  I would hope that it is a reflection of our people
    37        practices overall; the fact that people enjoy working for
    38        McDonald's, and that we are able to convince them to stay
    39        for longer periods than shorter periods.
    40
    41   Q.   Do you think that external economic conditions might have
    42        anything to do with it?
    43        A.  External conditions have some effect on it, but reality
    44        is it is not a significant effect.  We are able, even in
    45        times when there is virtually no unemployment or very
    46        little unemployment, we can still attract and retain people
    47        very well and experience reasonable turnover as we would
    48        see it.  So economics in short answer, economics would play
    49        a limited factor in it.
    50 
    51   Q.   One slight digression, Mr. Stein.  As you have that file in 
    52        front of you can you turn over, please, to the next 
    53        tab which is 41A.  Can I ask you this before we look at
    54        these figures.  Labour costs, Mr. Stein, the cost of labour
    55        is a significant factor in the running of the Company, that
    56        is right, is it not?
    57        A.  It is a factor but it is not the thing that you focus
    58        on ----
    59
    60   Q.   I will come to that, but it is a factor which the Company

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