Day 142 - 26 Jun 95 - Page 13

     
     1
     2   MR. RAMPTON:  My Lord, no, that is not quite right.  I beg your
     3        Lordship's pardon.  Everything is admitted except for the
     4        allegation which is expressly not admitted, that the
     5        alleged refusal to deduct union dues was illegal, which is
     6        a matter of mixed fact and Icelandic law.
     7
     8   MR. MORRIS:  I just put to you a question:  "Iceland in 1993:
     9        McDonald's refused to negotiate directly with trade unions
    10        over pay rates and conditions and illegally", which
    11        is contested, "refused to deduct Union dues direct from
    12        employees.  After trade unions threatened to launch a
    13        boycott campaign, the company conceded."   Do you have some
    14        personal information or general information about this?
    15        A.  I have some general information.
    16
    17   MR. JUSTICE BELL:  All you really need to ask is whether
    18        Mr. Stein accepts that the refusal to deduct union dues
    19        direct from employees was illegal or not in the light of
    20        the admission.
    21
    22   MR. MORRIS:  To be honest, there is actually a Civil Evidence
    23        Act notice on that, so to save time .....
    24
    25   MR. JUSTICE BELL:  You do not need it.  You have an admission of
    26        what you have pleaded, but you had better just put it to
    27        Mr. Stein whether he knows whether the refusal to deduct
    28        union dues was illegal or not.
    29
    30   MR. MORRIS (To the witness):  Do you know anything about that?
    31        A.  My understanding was that if the franchisee did not
    32        have a contract with the union or was not a member of the
    33        association, that he was advised that there was no legal
    34        obligation to deduct union dues unless requested, of
    35        course, by his employees.
    36
    37   Q.   We have finished with this.  One thing that is not strictly
    38        an international thing, but if you go to paragraph 29 on
    39        page 12 of the abstract:  "In the United States in 1974 a
    40        new federal law resulted in McDonald's raising their lowest
         rates in a high proportion of branches from" -- by
    42        "branches", I presume it means McOpCo or franchisees or
    43        whatever, McDonald's stores -- "$1.65 to $1.90".  Do you
    44        know whether a new federal law was brought in around 1974
    45        that would have affected minimum wage rates?
    46        A.  The problem that I am having is that there are always
    47        amendments to this law in the United States, and there are
    48        constantly amendments to the law in the US.  In trying to
    49        help you move this along, it could very well be that there
    50        were new amendments in 74, but I would not know if it was 
    51        72 or 76.  I would not remember.  I would know at the time, 
    52        but I would not remember now specifically whether it was 
    53        74.
    54
    55   Q.   I understand.  I just wondered whether there was some, if
    56        you like, fundamental change that had taken place around
    57        1974?  I mean, has there always been a minimum wage
    58        relevant to McDonald's?
    59        A.  As far back as I can ever remember?
    60