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Turner v Creative Industries of Detroit, Inc 4.09

Section 48

REMUNERATION, Allocation of holiday pay, Contractual specification, Designation of holidays, Vacation shutdown, Weekly holiday payment

CITE AS: Turner v Creative Industries of Detroit, Inc., No. 44061 (Mich App April 30, 1980).

Appeal pending: No

Claimant: Jimmy Turner, et al

Employer: Creative Industries of Detroit, Inc.

Docket No: B76 3548 (1) 53458 et al

COURT OF APPEALS HOLDING: Where holiday pay is distributed in every weekly paycheck, as a percentage of straight time earnings, it is not allocated to the designated holidays.

FACTS: The union contract and a supplemental agreement established a vacation shutdown from December 22 through January 2. "The contract further provided that holiday pay would no longer be distributed to employees at the time of the holiday. Instead, 'each employee's weekly paycheck ... [would] include an amount equal to 4.2 percent of his straight time hours worked.'"

DECISION: The claimants are eligible for benefits for the vacation shutdown period.

RATIONALE: "In the instant case, both Creative Industries and the Union agreed on the designation of the Christmas season holidays. At issue then is whether holiday payment was ever adequately allocated to those holidays, as required by the statute. See General Motors Corp v Unemployment Compensation Comm, 331 Mich 303; 49 NW2D 305 (1951). "In General Motors Corp, supra at 306-310, the Supreme Court held that holiday pay was remuneration in part where the bargaining parties had allocated funds to a specific day - December 25. In the present case, however, there has been no allocation of holiday pay to any specific holiday. Rather, the parties have agreed that each employee will receive 4.2 per cent of his straight time in each paycheck to cover all holidays."



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