Morning Report for November 29, 2001

                       Headquarters Daily Report

                         NOVEMBER 29, 2001

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                    REPORT             NEGATIVE            NO INPUT
                    ATTACHED           INPUT RECEIVED      RECEIVED

HEADQUARTERS                           X
REGION I                               X
REGION II                              X
REGION III          X
REGION IV                              X
PRIORITY ATTENTION REQUIRED  MORNING REPORT - REGION III  NOV. 29, 2001

Licensee/Facility:                     Notification:

United States Enrichment Corporation   MR Number: 3-01-0031
(Usec)                                 Date: 11/26/01
Paducah Gaseous Diffusion Plant        Resident Insp. Notified 11/26/01
Paducah,Kentucky
Dockets: 07007001

Subject: Contact Agreement at Paducah

Discussion:

On November 26, 2001, the Paper, Allied-Industrial, Chemical, and Energy
Workers (PACE) Union voted to accept the terms of a new contract offer
from USEC. The Union represents 700 USEC employees at Paducah. The
previous contract expired July 31, 2001, and since then, PACE and USEC
continued negotiations until they reached a tentative agreement at 1 a.m.
on November 20, 2001. The new 18 month contract is retroactive to July 31
and lasts until January 31, 2003.

Regional Action:

FOR INFORMATION ONLY

Contact:  AMBER MORRELL, DNMS        (630)829-9874
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