How common is this exactly? Because this sounds like a company that is really, really screwing it's employees.
Sun, like most companies, did give the option of taking the leave without pay and preserving your vacation time.
Maybe that's one option for US companies - pay for two weeks of vacation time, but culturally allow up to six without pay. Then we'd actually be somewhat more like European countries, but with an option - reduce your salary if you'd like more vacation, but keep working and make more money if that's more your style.
I doubt I'll see this happen - first, "leave without pay" is unusual in the US, typically done medical conditions where the employee wants to return to the job, but will be forced to leave for long periods of time (pregnancy leave is often handled this way). Another problem is that it may actually be inefficient - it would create a financial incentive to take minimum vacation time, and a lot of people believe, with some evidence, that workers are less productive this way.
[1] IANAAC: I am not an accountant ;)
At my company, the factory has 7,000 employees in one location. So many people took vacation between Christmas and New Years that the factory simply can not operate. The solution was either to only give that time off for a select group of people (pissing off most of the factory guys), or to make everyone take that time off (pissing off the few that used to come in that week and goof off).
Unfortunately they extended it from the guys in the factory up to the engineers. Which really makes no sense. I'm working on a project that won't hit the factory floor for another year. Why can't I work between Christmas and New Years? I would be amazingly produtive without all the meetings and distractions. Not only do we have to take the time off and use vacation (or not get paid and don't come in), but we are not allowed to come in even if we wanted to. I assume this is all negotiated with the unions, they never want the salaried guys to have perks that they don't have. So for I end up burning 3-5 out of 10 vacation days a year on a week I absolutely do NOT want to take off. But I still get paid for those days at least. And there are ways to get around it (floating holidays, i.e. work 40 hours in 4 days in a week with a holiday gives you the holiday back) which in effect allow you to have your full 2 weeks. If that was not the case I think the salaried engineers would have fought back against the practice more. Although I guess most people with kids like that week off anyway, I just view it as a waste, I like taking my vacation during the times those with kids can't take vacation. Everything is cheaper and less crowded.
A 'furlow' is an unpaid day that the company forces you to take. A lot of government employees have these now, you must take 1-5 days off a year and not get paid for those days. In effect it is a pay cut but in exchance you get more vacation days. The most interesting thing about the furlough is that very often you see people given a choice between everyone taking a few days furlough or a bunch of people getting fired. More often than not, everyone votes to have a few people fired.
Some countries laws (eg Ireland) explicitly allow forced closure for Christmas, it is also in several contracts (that part of your holidays must be over a certain period). This is the closest it gets in Europe.
It used to be pretty common here in Sweden that factories shut off for three weeks in the middle of the summer and everyone had vacation.
The practice is getting increasingly uncommon nowadays though since factory jobs is a smaller part of the total employment force.