Donald Zale Chairman of the Board May 13, 1986 ZALE CORPORATION MAY 26 1966 Senator Orrin Hatch Washington, D.C. 20510 Dear Senator Hatch: Attached you will find a copy of our policy on the disclosure of information for terminations and the inventory shrinkage figures as was discussed in my oral testimony before the Committee of Labor and Human Resources on the Polygraph Bill. I would like to reiterate our input to you at those hearings that it is our desire to work with your committee in a development of a bill that would meet the needs of the business community and Our employees. Subject: SEPARATION AND Page 3 of 5 E. SEVERANCE PAY 1. Severance pay and other benefits shall be administered in accordance with the chart on the following page. Eligible employees are those separated due to a reduction in force or, in the case of employees with ten or more years of service who are discharged for poor performance, if the Divisional/Corporate Vice President of Human Resources approves, and only upon receipt of a signed release. Employees discharged for cause or who voluntarily resign are not eligible. See other sections of this Personnel Manual for definitions, other restrictions, and the release form. One year service is required to receive severance pay with two exceptions provided for in the MCP. 2. Severance pay is based on an employee's anniversary date. Appropriate severance pay is one week's pay for every full year employed up to the maximum. Severance pay will not be prorated for portions of a year and will be paid in lump sum. 3. Employees who qualify for severance pay will also be paid the prorated portion of the vacation they would have earned the following April 1. Personal holidays are not accrued. 4. When operating units of Zale Corporation are purchased by another company, employees who keep comparable positions with the purchasing company will not be paid severance pay or accrued vacation, nor will any benefits be available if any offer of employment is refused. 5. CHART See following page. F. NOTICE PAY: All employees, irrespective of service, who are not discharged for cause or voluntarily resign, will be given two weeks notice of a company initiated separation. If the company fails to give the notice or does not allow an employee to work during this time the employee's pay will be continued during the two week period. G. REFERENCES & LETTERS REGARDING TERMINATION: It is Zale Corporation's policy, when giving references on former employees, to release information only on the employment dates and the job title. No other information is to be released under any circumstances whether requested in writing, by telephone or personal contact. All requests for references must be referred to Personnel Services, 257-4166. If an employee demands a letter stating the reason for termination, it will not be given unless required by law. Call Corporate EEO/Labor Relations if there is a question with regard to state law. 2. in which we cannot polygraph in, we have 2.17% to sales. States (18) in which we do no preemployment, but do other types of polygraphs, we have a shrink of .98% to sales. 3. States (19) in which we do all types of polygraph, we have a shrink of .74% to sales. 4. States where there is no polygraph states allowed, shrink with some form Senator DODD. Mr. Chairman, that is all I have. The CHAIRMAN. Thank you, Senator Dodd. We appreciate the testimony you have brought today. It has been an extremely informative and interesting hearing to me, and I think to others as well. So with that, we want to thank you for the efforts you have put forth-and for the risk that you have taken, Mr. Zale, we appreciate that, too. Thanks so much, and with that we will recess until further notice. [Whereupon, at 12:50 p.m., the committee was adjourned.]. [Additional material supplied for the record follow:] APPENDIX ADDITIONAL STATEMENTS Page Association of General Merchandise Chains, Inc Faraday National Corp Building Service Contractors Association International. Florida Department of State.. Hotel Employees & Restaurant Employees International Union. International Brotherhood of Eectrical Workers, AFL-CIO . ers of America.... 279 281 283 290 292 295 297 310 316 319 327 330 333 335 336 338 345 349 355 357 International Brotherhood of Teamster, Chauffeurs, Warehousemen & Help Service Employees International Union, AFL-CIO, CLC 487 491 Society of Independent Gasoline Marketers of America. 494 499 |