LSaF

Question

Ricky Marvin had worked for more than 10 years in 1GB Corporation. Under the terms of the personnel policy on retirement, any employee who had reached the age of 65 and completed at least 10 years of service would be compulsorily retired and paid 30 days' pay for every year of service. Ricky Marvin, whose immigrant visa to the USA had just been approved, celebrated his 60th birthday recently. He decided to retire and move to California where the son who petitioned him had settled. The company refused to grant him any retirement benefits on the ground that he had not yet attained the compulsory retirement age of 65 years as required by its personnel policy; moreover, it did not have a policy on optional or early retirement. Taking up the cudgels for Ricky Marvin, the union raised the issue in the grievance machinery as stipulated in the CBA. No settlement was arrived at and the matter was referred to voluntary arbitration. If you were the Voluntary Arbitrator, how would you decide? Briefly explain the reasons for your award. (2007 BAR)

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