ML20198N363

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Discusses Investigation Rept 1-93-027R Completed on 970923 & Forwards Notice of Violation.Violation Involves Failure of Construction Products Research,Inc & Five Star Products,Inc to Adhere to Requirements of 10CFR50.7
ML20198N363
Person / Time
Issue date: 01/16/1998
From: Collins S
NRC (Affiliation Not Assigned)
To: Babcock H
CONSTRUCTION PRODUCTS RESEARCH, INC., FIVE STAR PRODUCTS, INC.
Shared Package
ML20198N367 List:
References
REF-QA-99901252, REF-QA-99901253 EA-97-471, NUDOCS 9801210036
Download: ML20198N363 (4)


Text

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UNITED STATES NUCLEAR REGULATORY COMMISSION 3 (' >

WASHINGTON, D.C. 30004 4 001 I

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  • ..**. January 16, 1998 [

n EA 97-471 Construction Products Research, Inc.

Five Star Products, Inc.

ATTN: Mr. H. Nash Babcock 435 Stillson Road Fairfield, Connecticut 06430-3148

SUBJECT:

NOTICE OF VIOLATION (Office of Investigations Case No. 1-93-027R)

Dear Mr. Babcock:

This letter is in reference to the Nuclear Regulatory Commission (NRC) Office of Investigations report of investigation, which was completed on September 23,1997. The report concluded that Construction Products Research, Inc. (CPR), and Five Star Products, Inc. (Five Star), violated the employee protection provir, ion of the Energy Reorganization Act of 1974 (ERA). The NRC's investigation found that CPR and Five Star, through the actions of senior management officials, discriminated against Mr. Edward P. Holub, former Director of Research for CPR, for engaging in protected activities within the scope of the ERA. A copy of the synopsis of the Office of Investigations report is enclosed.

Mr. Holub's protected activities included raising safety concems with the NRC regarding the quality of testing products that CPR and Five Star supplied to nuclear power plants, and cooperating with tha NRC in connection with its investigation of CPR and Five Star. As determined by NRC's Office of Investigations, dur'ng the period December 22,1992, to January 22,1993, CPR and Five Star discriminated against Mr. Holub by: (1) placing him on an involuntary leave status; (2) instructing other employees not to discuss the ongoing NRC investigation of CPR and Five Star with him; (3) denying him access to his office and other facilities in the companies; and (4) terminating him from employment.

Based on the information developed in this case, the NRC has determined that a violation of NRC requirements occurred. The violation is cited in the enclosed Notice of Violation (Notice),

and involves the failure of CPR and Five Star to adhere to the requirements of 10 C.F.R. 50.7, ,

which prohibits discrimination against employees for engaging in protected activities. The I violation is of very significant regulatory concern because it involved an act of employee f discrimination by senior corporate officials, the president and vice president of CPR, and the president and vice president of Five Star. The sphere of influence of such Individuals is g' <

significant, and the impact of discrimination committed at this level has the potential to create a chilling effect throughout the company. The NRC places a high value on the freedom provided to nuclear industry employees to raise potential safety concems to their management or to the

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" I L, NRC. Scotion 211 of the ERA and 10 C.F.R. 50.7 establish strict requirements for the protection of employees against discrimination for rait ing nuclear safety issues. The NRC considers cases sbch as thess, where senior corporate officials discriminate against an employee in violation of i 10 C.F.R. 50.7, to be very significant. Therefore, in accordance with the " General Statement of J

' Policy and Procedure for NRC Enforcement Actions" (Enforcement Policy, NUREG 1600), this j violation has been categorized at Severity Level I.  !

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j CPR and Five Star are not permitted at this time to provide or supply products, including grout  !

. and conorate, certified as safety-grade to NRC licensees, as a result of a prior enforcement l action which was issued by the NRC on December 1,1995 (IA 95-058), and modified by a l Stipulation entered into on December 28,1995. Notwithstanding that prohibition, CPR and Five Star have a continuing obligation to comply with 10 CFR Part 21 with respect to the products it  !

l has supplied to NRC licensees and contractors for licensees in the past. It is important that CPR  :

. and Five star maintain an environment conducive to raising concems relating to the companies' l

continuing responsibilities to meet NRC requirements. Accordingly, you are required to respond .
to this Notice within 30 days of this letter._ Any response should follow the instructions specified  !

in the enclosed Notice. Your response should document the specific actions taken and any  !

additional actions you plan to prevent recurrence. It should explain why the NRC should have +

confidence that your employees, to the extent that they are engaged in licensed activities, are  ;

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i. free to raise safety concerns to their employer or to the NRC, without fear of retaliation. After reviewing your response to this Notice, including your proposed corrective actions, the NRC will ,
determine whether further NRC enforcement action is necessary to ensure complianos with  ;

L NRC regulatory requirements.

In accordance with 10 C.F.R. 2.790 of the NRC's " Rules of Practice," a copy of this letter and its l enclosure will be placed in the NRC Public Document Room (PDR). Your response to this letter I will also be placed in the PDR. Accordingly, to the extent possible, your response should not  :

, include any personal privacy, proprietary, or safeguards information so that it can be placed in  ;

the PDR without redaction. However, if you find it necessary to include such information, you t should clearly indicate the specific information that you desire not to be placed in the PDR, and i l provide the legal basis to support your request for withholding the information from the public.

3 The enclosed Notice is not subject to the clearance procedures of the Office of Management [

and Budget as required by the Paperwork Reduction Act of 1980, Pub. L No. 96 511.

Sincerely,

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- Samuel J. lins, i r  ;

% Office of Nuclear Reactor Regulation  ;

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Docket No. 999 01253 i

Enclosures:

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1. Notice of Violation .
2. Synopsis of 01 Report  !

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t 3 j cc: Harold James Pickerstein, Esq. 1 Trager and Trager 1305 Post Road t Fairfeld, Connecticut 06430 Michael F. McBride, Esq.

LeBoeuf, Lamb, Greene & MacRae, L LP.

1875 Connecticut Avenue, N.W.

. Suite 1200

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