- 16 -
other types of compensated leave. A number of factors determine
the type and amount of vacation pay available to an employee,
such as: (1) The employing company; (2) the employee's job
classification; (3) the employee's tenure with the employing
company; and (4) the employee's status as a union or non-union
worker.
Petitioner deducted $78,110,485 attributable to its vacation
pay liability on its return for TYE 8701, $24,171,499 of which is
in dispute in the instant case (the 1987 Vacation Pay).
Petitioner deducted $62,841,617 attributable to its vacation pay
liability on its return for TYE 8801, $17,927,808 of which
remains in dispute (the 1988 Vacation Pay).
A. The Terms of the Vacation Benefits Plans
Petitioner provided vacation pay benefits to its employees
under three basic plans: (1) The American Stores Co. general
vacation plan and other plans providing similar benefits (herein
collectively referred to as the General Plan); (2) the Star
Markets Non-Union Plan (the Star Markets Plan); and (3) the Acme
Markets Union Plans (the Acme Markets Plans).
1. The General Plan
The General Plan is the vacation benefit plan most widely
used by petitioner. Under this plan, once a covered employee
reaches the first anniversary of his initial hire date, he has
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011