Day 197 - 07 Dec 95 - Page 53


     
       1
       2 MR. MORRIS:  Where are we?
       3
       4 MR. JUSTICE BELL:  Page 34, 6.3.
       5
       6 MR. RAMPTON:  Page 34, scheduling.  "Additional comments:
       7      Train your Managers to use the tools of the trade, OCLs,
       8      PRs, calibration check lists, keep crew levels up and your
       9      job will be a lot easier".  Another cost incurring
      10      recommendation from Mr. Davis, yes?
      11      A.  On paper, yes.
      12
      13 Q.   Why do you say that the management costs are not part of
      14      the equation?
      15      A.  They are part of the equation but because a salaried
      16      Manager is on a set salary, it is something that I had no
      17      control over.  So, if I had three salaried Managers or six
      18      salaried Managers, it is not a cost I could control.  So,
      19      it was not part of my actual controllables as such because
      20      there was no way I could actually cut or .....
      21
      22 Q.   It is within your control whether or not you appoint
      23      Managers, promote people from, let us say, training squad
      24      to Trainee Manager, is it not?
      25      A.  It is, yes.
      26
      27 Q.   And when you do that you eat into your potential
      28      profitability, do you not?
      29      A.  You do, yes.
      30
      31 Q.   Was not Mr. Davis repeatedly encouraging you to promote
      32      people and to hire more Managers?
      33      A.  We were always short of Managers, yes.
      34
      35 Q.   Sorry, I did not hear.
      36      A.  We were always short and hiring Managers.
      37
      38 Q.   That was not my question.  Was not Mr. Davis repeatedly
      39      encouraging you, indeed, you might say instructing you to
      40      hire more Managers and promote more people to management
      41      positions?
      42      A.  He was, yes.
      43
      44 Q.   A cost incurring measure, not a cost saving measure, do
      45      you agree?
      46      A.  In one area, it is a cost occurring, but in the other
      47      way it was a cost saving because, as I said before, my
      48      crew labour figure that I would be expected to be hit
      49      would be on hourly paid, so if I had a higher percentage
      50      of salaried Managers on, that would actually -- could
      51      actually off balance that by having salaried Managers on.
      52      Your daily labour figure will be lower. 
      53
      54 Q.   Profitability, Mr. Coton, at the end of day is, is it not,
      55      the difference between your costs and the value of your
      56      sales?
      57      A.  It is, yes.
      58
      59 Q.   One element in the costs is the cost of management,
      60      salaried management, yes?

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