ML20207E820

Refers to Investigation Case 3-1998-033 Re Apparent Violation Involving Usec & Lockheed-Martin Utility Service, Inc Mgt Discriminating Against Employee at Paducah Gaseous Diffusion Plant.Synopsis Encl.Without Encl 2

ML20207E820
Person / Time
Site:	07007001
Issue date:	05/18/1999
From:	Pederson C NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III)
To:	Adkins J UNITED STATES ENRICHMENT CORP. (USEC)
References
EA-99-110, NUDOCS 9906070163
Download: ML20207E820 (5)

Text

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%_ UNITE) STATES

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'n P, REGloN W E8 I 801 WARRENWlu.E ROAD

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.....- May 18, 1999 EA 99-110 Mr. J. N. Adkins Vice President - Production United States Enrichment Corporation Two Democracy Center 6903 Rockledge Drive Bethesda, MD 20817.

SUBJECT:

PREDECISIONAL ENFORCEMENT CONFERENCE (NRC OFFICE OF INVESTIGATIONS CASE NO. 3-1998-033)

Dear Mr. Adkins:

This is in reference to an apparent violation of a U.S. Ijuclear Regulatory Commission (NRC) requirement prohibiting discrimination against employees who engage in protected activities (i.e.,10 CFR 76.7, " Employee Protection"). The apparent violation involved the United States Enrichment Corporation (USEC) and Lockheed-Martin Utility Services, Inc. (LMUS) .

management discriminating against a LMUS employee at the Paducah Gaseous Diffusion Plant, Paducah, Kentucky. Although both USEC and LMUS (USEC's contractor) management appeared to have been involved in the apparent violation, the NRC holds USEC responsible for

- ensuring compliance with NRC requirements by contract personnel. The NRC is also aware that beginning May 18,1999, USEC's contract with LMUS for operation of the Paducah Plant will and and all current LMUS staff will become USEC employees. Furthermore, it appears l/

1 that, in this case, a USEC employee may have been responsible for initiating the alleged discriminatory employment action. The NRC Senior Resident inspector discussed this apparent

'l violation with Howard Pulley, Plant Manager, and Larry Jackson, Regulatory Affairs Manager, on April 30,1999.

On August 10,1998, USEC and LMUS management transferred the LMUS Manager of Quality Systems to a non-managerial position in the Training Department. The Quality Systems Manager believed that the transfer was retaliatory in nature and was due to: (1) safety-related findings he had raised to management; (2) safety-related findings raised by employees working for him; and (3) his personal contacts with the NRC about safety-related issues at the Paducah facility. Separately, the USEC and the NRC Office of Investigations (OI) investigated this matter. The USEC investigation concluded that the transfer of the Manager of Quality Systems was not retaliatory in nature and was due to his failure to perform tasks assigned to his group and his poor interpersonal communication skills.' However, the 01 investigation recognized the M00M NEE WI

' A copy of the USEC investigation report was provided to 01 on March 4,1999.

9906070163 990518 PDR ADOCK 07007001 C PDR .

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r findings of the USEC investigation, but concluded that the transfer to the Training Department was due, in part, to his involvement in safety-related activities. The synopsis and a summary of

. the 01 report are enclosed.

The NRC staff's review of the 01 findings indicated that the action taken against this individual is an apparent violation of 10 CFR 76.7. Therefore, this' apparent violation is being considered for escalated enforcement action in accordance with the " General Statement of Policy and .

- Procedure for NRC Enforcement Actions" (Enforcement Policy), NUREG-1600, Revision 1.

The NRC is not issuing a Notice of Violation at this time; USEC will be advised by separate correspondence of the results of our deliberations on this matter. Also, please be aware that the characterization of the apparent violation described in this letter may change as a result of further NRC review.

As requested by Mr. Larry Jackson, Paduct.h Regulatory Affairs Manager, on May 3,1999, we will contact your staff within five days of the date of this letter to schedule a transcribed predecisional enforcement conference with USEC to discuss this apparent violation. The conference will be held at the NRC Region ill Office in Lisle, Illinois. Since the performance of certain USEC and LMUS employees will be~ discussed during the conference, the conference will be closed to public observation. However, the former Manager of Quality Systems will be

- invited to attend. Also, USEC is requested to bring a certain employee to the enforcement conference.

The decision to hold an enforcement conference does not mean that the NRC has made a final determination on enforcement action in this case. In addition, the conference is an opportunity for USEC to provide the NRC with perspectives on: (1) the severity level of the apparent violation; (2) the application of the factors that the NRC considers when it determines the' amount of a civil penalty that may be assessed in accordance with Section VI.B.2 of the Enforcement Policy; and (3) any other application of the Enforcement Policy to this case, including the exercise of discretion in accordance with Section Vll. Such a violation, if it occurred, could have a chilling effect on other employees in that it might deter them from identifying any nuclear safety related concems they may have. Therefore, we request that at the conference, you address the actions taken or planned to correct any perceived chilling effect upon other employees.

In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," a copy of this letter without Enclosure 2 will be placed in the NRC Public Document Room (PDR). The NRC will delay

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J. Adkins . ,

deciding whether to place a copy of Enclosure 2 in the PDR until a final enforcement decision has been made.

Sincerely,

/ g C . Pederson, Director vis n of Nuclear Materials Safety Docket No.70-001 Certificate No. GDP-1

Enclosures:

1. 01 Report Synopsis

2. Summary of 01 Report cc w/encis: H. Pulley, Paducah General Manager l L L. Jackson, Paducah Regulatory Affairs Manager J. M. Brown, Portsmouth General Manager S. A. Toolle, Manager, Nuclear Regulatory Assurance and Policy, USEC -

Paducah Resident inspector Office Portsmouth Resident inspector Office

' R. M. DeVault, Regulatory Oversight Manager, DOE J. C. Hodges, Paducah Site Manager, DOE

.e

J. Adkins -4 ENCLOS_MRE 2 IS NOT FOR PUBLIC RELEASE WITHOUT THE APPROVAL OF THE DIRECTOR. NRC OFFICE OF ENFORCEMENI Distribution with Enclosures 1 and 2

Office of Enforcement V. Beaston, OE D. Dambly, OGC S. Chidakel, OGC R. Pierson, NMSS P. Ting, NMSS J. L. Caldwell, Rill Distribution with Enclosure 1 ONLY Public 1907 Docket File W. Troskoski, NMSS C. Cox, NMSS W. Schwink, NMSS P. Harich, NMSS M. L. Horn, NMSS R. Bellamy, RI EJM, Ril (e-mail)

D. B. Spitzberg, RIV .

IEO (e-mail)

DOCDESK (e-mail)

Greens OAC: Rill ENCLOSURE 2 IS NOT FOR PUBLIC RELEASE WITHOUT THE APPROVAL OF THE DIRECTOR. NRC OFFICE OF ENFORCEMENT

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ENCLOSURE 1 SYNOPSIS This investigation was initiated on August 13,1998, by the U.S. Nuclear Regulatory Commission, Office of Investigations, Region ill, to determine whether the former Quality

. Systems Manager at the Paducah Gaseous Diffusion Plant had been discriminated against for J raising safety concerns. I Based on the evidence developed during the investigation, it is conc!uded that sufficient i

. evidence exists to substantiate the alleged employment discrimination, that in part, the action J taken against the former Quality Systems Manager was a result of engaging in protected {

activity, I I

Case No. 3-1998-033 )

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