Statement Issued By Subway Developments Ltd

8 May, 2007

Statement Issued By Subway Developments Ltd

The matter between Subway, George Street Dunedin and Jacqueline Lang is confidential between employer and employee. Because of this, the Employment Relations Service together with the Employment Relations Authority and the Employment Court are the only appropriate forums in which to resolve the matter between the parties.

All Subway restaurants in New Zealand are individually owned and operated by independent franchisees. The owner of the Subway George Street store is Galcol Limited.

As a franchisor, the Subway chain provides guidance in menu and operational matters. It is not involved in matters between the franchisee and staff. Subway restaurant staff are employees of individual franchisees and not of the Subway chain.

In addition, the Subway chain does not keep records of restaurant employees, evaluate their performance, set their pay rates or become involved in decisions regarding their advancement or termination.

In this employment matter, the George Street Dunedin franchisee, Galcol Limited, made the decision to terminate the employment of one of its employees, Jacqueline Lang. The franchisee contacted the Police on March 15 as soon as it was made aware of an incident involving Ms Lang.

The Police were contacted in order to clarify the situation before any action was taken by the franchisee. In this instance the Police made the decision to prosecute solely at their discretion. Neither Subway Developments NZ Ltd nor its franchisee were involved in the decision to bring criminal charges.

Galcol Limited has expressed its continued willingness to resolve the matter via mediation.

ENDS

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