Day 140 - 22 Jun 95 - Page 61
1 is a federally applied location they can use the tips to
2 apply to the wages, and fall after what the employer pays
3 below the federal minimum.
4
5 Q. What do you mean, they actually count each week the tips
6 that someone has got and deduct it off their wages?
7 A. That is correct. They are our obligated to do that
8 anyway because the internal revenue service in the United
9 States considers that income and requires employers to keep
10 track of it.
11
12 MR. JUSTICE BELL: Again, I wonder if you are at cross purposes?
13
14 MR. MORRIS: I cannot believe that ----
15
16 MR. JUSTICE BELL: Is what you are saying this: They do not
17 pay, say, $3.50 an hour and then take off that the tips
18 which they think the employers receive, but in order to
19 comply with the minimum wage imposed by this state
20 legislature they can allow for a standard amount which is
21 assumed to have been received by the employee in tips. Let
22 us suppose the minimum was $3.50, and the assumption in the
23 state was that they get the equivalent of 50 cents an hour
24 in tips, then it would be lawful for the employer to pay
25 wages just $3 an hour?
26 ?
27 A. That is correct, my Lord.
28
29 Q. Just as I know in this country the revenue is prepared to
30 make certain assumptions and you jolly well have to prove
31 to the contrary before you can take yourself outside the
32 assumption?
33 A. Very similar, my Lord.
34
35 MS. STEEL: There is just one area that I wanted to cover in
36 relation to this. When you were giving your
37 evidence-in-chief you were being asked about the
38 Philadelphia Unemployment Project Campaign over wage rates
39 at McDonald's?
40 A. Yes.
41
42 Q. And you said they began a campaign within the Philadelphia
43 area to attempt to organise McDonald's restaurants. What
44 were you referring to when you said that?
45 A. If you take a look at the various articles that you
46 have been taking me through you will see "boycott", the
47 word "organise", and other words suggesting that would be
48 in their signs.
49
50 Q. But when you said about organising McDonald's restaurants,
51 you were talking about the workers, getting the crew to
52 take some kind of industrial action or join unions?
53 A. That the boycott was raising issues of organisation,
54 that is what I am saying.
55
56 Q. Of the workers?
57 A. Yes. Whether or not that actually happened, I do not
58 know but that is what was on these newspaper articles.
59
60 MR. MORRIS: We do apologise for jumping up but there are so
