Day 117 - 27 Apr 95 - Page 25


     
     1        managers, salaried staff?
     2        A.  Yes, and excluding holiday pay and payroll taxes.
     3
     4   Q.   I was going to come to that.  I just want to do it
     5        annually.  The year before it was just over 15 per cent?
     6        A.  15.6 yes.
     7
     8   Q.   You had hoped you would able to keep did 14.8?
     9        A.  That is what managers had budgeted in each of stores.
    10        When it was consolidated that was the figure they come up
    11        with.
    12
    13   Q.   Leave "Management Labour" because that is a separate item
    14        which does not have any relevance here because of the
    15        nature of allegation.  Then, in addition to 15.1 per cent,
    16        you have got the crew holiday pay accounting for 1.09 per
    17        cent and payroll taxes 1.41 per cent?
    18        A.  That is right.
    19
    20   Q.   If you add those together you get something ---
    21        A.  Just under 18 per cent.
    22
    23   Q.  -- just under 18 per cent.  You get just over 18 per cent,
    24        do you?  No just under?
    25        A.  Just under.
    26
    27   Q.   Can you explain what payroll taxes are?
    28        A.  National Health Service payments.
    29
    30   Q.   That sort of thing?
    31        A.  That sort of thing.
    32
    33   Q.   This is a question borne of ignorance, Mr. Nicholson.  How
    34        could you control your payroll taxes?
    35        A.  Well, you cannot.  It is put in there simply
    36        because -- well, you could because if you are controlling
    37        your crew labour, you are controlling -----
    38
    39   MR. JUSTICE BELL:  They are related, one is related to the
    40        other?
    41        A.  One is related to other.
    42
    43   MR. RAMPTON:  If you had fewer people you would pay less tax?
    44        A.  Absolutely.
    45
    46   Q.   Similarly I suppose if you had fewer customers?
    47        A.  You would need fewer crew.
    48
    49   Q.   You would have fewer sales.  To be serious for a moment,
    50        what benefit do you think would be conferred on the company 
    51        by persistently seeking levels of crew labour cost which 
    52        resulted in chronic under-staffing in the restaurant? 
    53        A.  Sorry, would you  repeat that question?
    54
    55   Q.   The allegation is that you put so much pressure on your
    56        managers to keep crew labour cost below 15 per cent, at 15
    57        per cent or below, that you have chronic under-staffing
    58        with the result that the poor few that do work there are
    59        under constant pressure?
    60        A.  Yes.

Prev Next Index