B.C.D. 02-72

EMPLOYER STATUS DETERMINATION

ISG-South Chicago & Indiana Harbor

ISG-Cleveland Works Railway Company

ocr 2 2 2002

This is the determination ofthe Railroad Retirement Board concerning the status of

ISG-South Chicago & Indiana Harbor (South Chicago) and ISG-Cleveland Works

Railway Company (Cleveland Works) as employers under the Railroad Retirement 

Act (45 U.S.C. § 231 et seep) and the Railroad Unemployment Insurance Act (45

U.S.C. § 351 etseq.).

Cleveland Works is a wholly-owned subsidiary ofISG Cleveland, Inc., which is in

turn a wholly-owned subsidiary ofInternational Steel Group, Inc. South Chicago 

is a wholly-owned subsidiary ofISG Indiana Harbor Inc., which is in turn is also a

wholly-owned subsidiary of International Steel Group, Inc.

In Surface Transportation Board Finance Docket No. 34182, Cleveland Works 

filed a notice of exemption to acquire and operate 9.5 miles ofrail line formerly 

owned by The Cuyahoga Valley Railway Company and River Terminal Railway

Company, both employers under the Acts (B.A. numbers 4207 and 4346, 

respectively)1. It has 74 employees who were hired beginning May 5, 2002. 

Operations began May 16, 2002. The line is a terminal switching railroad in

Cleveland, Ohio which interchanges with a number ofrail lines including CSXT 

and Norfolk Southern.

In Surface Transportation Board Finance Docket No. 34188, South Chicago filed a

notice of exemption to acquire and operate 5 miles ofrail line formerly owned by

Chicago Short Line Railway Company, an employer under the Acts (B.A. number

4315)2. Operations began April 12, 2002. The line is a terminal switching railroad

which interchanges with a number ofrail lines including CSXT and Norfolk

Southern Railway Company. According to information provided, operations for

South Chicago are performed by individuals supplied by a temporary employment

agency, CMM3.

1 The continued operation ofThe Cuyahoga Valley Railway Company and River Terminal Railway Company is

being reviewed to determine whether their status as covered employers under the Acts should be terminated.

2 The continued status ofChicago Shortline Railway Company under the Acts is being separately determined.

3 The work performed by these individuals is currently being reviewed to determine whether they should be

considered to be covered employees under the Acts.

BA# 4276

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ISG-South Chicago & Indiana Harbor

ISG-CIeveland Works Railway Company

Section 1(a)(1) ofthe Railroad Retirement Act (45 U.S.C. § 231(a)(1)), insofar as

relevant here, defines a covered employer as:

(i) any carrier by railroad subject to the jurisdiction ofthe 

Surface Transportation Board under Part A ofsubtitle IV oftitle 49,

United States Code;

Sections 1(a) and 1(b) ofthe Railroad Unemployment Insurance Act (45 U.S.C.

§§ 351(a) and (b)) contain substantially the same definition, as does section 3231

ofthe Railroad Retirement Tax Act (26 U.S.C. § 3231).

The evidence ofrecord establishes that South Chicago and Cleveland Works are

carriers operating in interstate commerce. Accordingly, it is determined that these 

companies became employers within the meaning ofsection l(a)(l)(i) ofthe

Railroad Retirement Act (45 U.S.C. § 23 l(a)(l)(i)) and the corresponding

provision ofthe Railroad Unemployment Insurance Act as of May 5, 2002, in the

case ofCleveland Works, and as ofApril 12, 2002, in the case of South Chicago, 

the dates as ofwhich these companies first commenced operations or hired 

employees.

Original signed by:

Cherryl T. Thomas

V. M. Speakman, Jr.

Jerome F. Kever