Kone Elevator Corp., almost two years ago, began withholding taxes on vacation checks at the flat rate of 25% of the gross amount without regard to any claimed exemptions. Kone explained they were only following the tax code. The IUEC held that no other employers were doing that and filed a grievance against Kone. The IRS was asked to give a ruling on the matter and in a "Private Letter Ruling" the IRS held that Kone was acting appropriately. Given this ruling, the IUEC has withdrawn their grievance against Kone. This will almost certainly cause a change in how vacation checks are handled in our next contract negotiations.