ML20214G313
| ML20214G313 | |
| Person / Time | |
|---|---|
| Site: | 07100143 |
| Issue date: | 04/27/1987 |
| From: | Mckay J SHAW, PITTMAN, POTTS & TROWBRIDGE |
| To: | Mckendree J OIL, CHEMICAL & ATOMIC WORKERS INTERNATIONAL UNION |
| References | |
| 28148, NUDOCS 8705270017 | |
| Download: ML20214G313 (4) | |
Text
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76 MG RETURN IQ 3,93 33 SHAW, PITTMAN, PoTTs & TROWBRIDGE A PARTNERSHIP INCLuofNG PeorESSCNAL CCRDORATCNS 2300 N STREET N. W.
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JACK MCKAY. P.C.
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4 Daar John:
b I #s It was a pleasure to meet with Mr. Alexander, Mr. Abel and you on Thursday evening.
I appreciated the candor of our discussions regarding the purchase of the stock of Nuclear Fuels Services, Inc. by NFS Services, Ltd.
Because of the same constraints which prevented includ-ing Mr. Tolley in our meeting, Mr. Schutt, regretfully, cannot meet with local union representatives as you suggested.
In lieu of such a meeting, we are providing herewith certain commitments in writing that I believe meet the concerns voiced at our meet-ing.
I trust that you will convey these commitments to the indi-viduals who should learn of them.
1.
Management.
There will be a new Chief Executive Officer of NFS, Paul Schutt, to whom all NFS officers will report.
2.
Collective Bargaining Relationship.
NFS Services, Ltd. recognizes the binding effect of the agreement of March 30, 1986 with the OCAW (the " Collective Bargaining Agreement") and acknowledges that NFS continues to be bound by it in accordance with its terms.
3.
Employee Benefits.
NFS Services, Ltd. is commit-ted to take no action that will impair existing rights of employees under any benefit program administered by NFS.
Specif-ically, in accordance with the Collective Bargaining Agreement, there will be no termination of the pension plan and no withdraw-als of funds from the plan even if it is currently overfunded.
NFS will continue to make actuarily required contributions to the plan.
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8705270017 870427 kd,$M '
N SHAw, PITTMAN, PoTTs & TROWBRIDGE A PARTNER $M6P INCLUDING PRortsSIONAL CORPORATIONS John W. McKendree, Esquire April 27, 1987 Page 2 4.
Employee Relations.
After the stock purchase is approved, NFS Services, Ltd. will elect four new members to the NFS Board of Directors.
Three of the new directors will be lo-cated in Erwin, Tennessee to provide high level, on-site supervi-sion.
One of the new Board's major goals will'be to improve com-munications and relations with employees and to build a team approach involving all plant personnel.
To this end, and as a first step, manufacturing managers will receive continued training in the fundamentals of leadership and motivation.
5.
Future of NFS.
The new owners are fully committed to seeking a new Navy contract for years after 1988 for as many years and for as much production as can be negotiated.
To place NFS in the best position to secure such a contract, the new own-ers plan to cause NFS to make capital improvements to enhance production efficiency, housekeeping, and safety at the Erwin facility.
The new owners have no intention to bring other nuclear waste to be stored / processed / disposed at Erwin.
6.
Decommissioning.
Decontamination and-decommissioning will be commenced within 90 days of the closing on the stock purchase.
Initial efforts will focus on purifying water pumped from the ponds, removal and analysis of the sludge in the ponds, and removal of contaminates from the surrounding soil.
Decontamination and decommissioning of the unused plutoni-um facilities will begin as soon as possible.
NFS Services has committed to cause NFS to spend spend at least $4 million on uranium and plutonium decommissioning, from current funds and not from the escrow fund, in the three years commencing January 1, 1988 but plans to spend more in cur-rent funds for these purpc9es.
7.
Decommissioning Fund.
The escrow fund established for decommissioning expenses will be used only for that purpose and the restrictions to limit its use to this purpose will be strengthened.
The fund will continue to grow through interest and annual' contributions by NFS.
The best way to insure growth of the fund is to secure another Navy contract.
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SH Aw, PITTM AN, PoTTs & TROWBRIDGE A PARTNER $Mlp INCLUDING PROFESSION AL CORPORATIONS John W. McKendree, Esquire April 27, 1987 Page 3 As we discussed at our meeting, we have a common inter-est in what is best for NFS.- What is best for NFS is to facil-itate the purchase of the stock by NFS Services, Ltd. to elimi-nate the very substantial risk that NFS will be drawn into the l
Texaco bankruptcy.
I urge that the OCAW support the application of NFS Services, Ltd. to the Nuclear Regulatory Commission for approval of purchase of the NFS stock.
- cerely,
'Ot A kb ck McKay unsel to NFS Services, Ltd.
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