ApR 2 0 1979 ^ 7 9 - i 4 £ Director of Data Processing and Accounts

General Counsel

VIA Rail Canada Inc. Employer statue

This is in response to your request of March 27, 1979, for my opinion concerning the employer status of VIA Rail Canada Inc.

Effective October 29, 1978, passenger personnel working for both the Canadian National and Canadian Pacific Railways were transferred to VIA Rail Canada Inc. a Crown Corporation created by an Order-in-Council. VIA Rail Canada Inc. does not provide services which originate or terminate within the continental United States, but does run trains through United States territory between Jackman and Vanceboro, Maine, which discharge and pick up passengers.

The Canadian Pacific Railway Company is an employer under the Railroad Retirement and Railroad Unemployment Insurance Acts with respect to its operations in the United States. It appears as item 952 In the Employer Status List, with creditable service from June 30, 1889 to date. Likewise, the Canadian National Railways is an employer under the Acts with respect to its operations in the United States. It appears as Item 944 in the Employer Status List, with creditable service from February 4, 1887 to date. VIA Rail Canada Inc. is a new corporation and has not been an employer under the Acts.

Section 1(a)(1)(1) of the Railroad Retirement Act provides that the term ■employer* shall include any carrier by railroad subject to part I of the Interstate Commerce Act. Section I of the Interstate Commerce Act provides that a common carrier which operates from or to any place in the United States to or from a foreign country is subject to the Interstate Commerce Act, but only insofar as transportation or transmission takes place within the United States. Consequently, it follows that as to its operations within the United States, VIA Rail Canada Inc. is a carrier subject to Director of Data Processing and Accounts the Railroad Retirement Act and the Railroad Unemployment Insurance Act. Section 1(d)(2)(1) of the Railroad Retirement Act providesi

"* * * an individual shall be deemed to be in the service of an employer, * * • not conducting the principal part of its business In the United States only when he is rendering service to it in the United States."

In light of this, employees of VIA Rail Canada Inc. are employees under the Railroad Retirement Act only with respect to services performed for VIA Rail Canada Inc. in the United States.

An appropriate Form 0-341 giving effect to the foregoing conclusion is attached.

Dale G. Zimmerman

Attachment

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