### Federal Mediation and Conciliation Service

### Five-Year Strategic Plan

2004-2009

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### *Updated September 12, 2005*

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### TABLE OF CONTENTS PAGE NUMBER: 

**I. FMCS SERVICES 4**

A. Collective Bargaining Mediation and Grievance Mediation 4

B. Relationship-Development and Training 5

C. Employment Mediation 5

D. International Training and Exchange 5

E. Arbitration Services 6

F. Grants Program 6

G. FMCS Institute for Conflict Resolution 6

**II. ASSESSMENT OF EXTERNAL FACTORS AFFECTING GOALS**

**AND OBJECTIVES 6**

> A. Globalization of Industry 7
>
> B. Impact of Technology 7
>
> C. Economic Forecasts 7
>
> 1\. Uncertainty of Business Cycles 7
>
> 2\. Occupational and Industry Growth 8
>
> D. Rising Health Care Costs 9
>
> E. Effect of September 11, 2001 10
>
> F. Increase in Contract Duration 11
>
> G. Changing Face of Labor and Corporate Consolidations 11
>
> H. Labor Force Demographics 12
>
> I. Increased Acceptance of Alternative Dispute Resolution 12

**III. Mission, VISION, AND Values STATEMENTs 13**

A. Mission Statement 13

B. Vision Statement 13

C. Values Statement 14

### 

**IV. GOALS 15**

**V. STRATEGIES 16**

> **[Strategic Goal 1 -- Minimize or Prevent Work Stoppages
> 16]{.smallcaps}**
>
> 1\. Definition of "Severe" Work Stoppages 16
>
> 2\. Strategies
>
> a\. Estimate Economic Impact of Work Stoppages 16
>
> b\. Estimate Economic Benefits of Preventing
>
> and/or Reducing Disputes 17
>
> c\. Active Involvement in Disputes with Significant
>
> Impact on Commerce 18
>
> d\. Special Focus On Industries Critical to the Economy 19
>
> e\. Health Care Industry 19
>
> **[Strategic Goal 2- improve Labor-management Relationships
> 20]{.smallcaps}**
>
> 1\. Definition of "Improved Relationship" 20
>
> 2\. Strategies
>
> a\. Number of Collective Bargaining Partners Committed to Cooperation
> 20
>
> b\. Measuring Effectiveness of Training Programs 21
>
> c\. Guidelines to Assess Relationship-Building Programs 21
>
> d\. Periodic Reviews of Training Programs 22

### 

> **[Strategic Goal 3 - facilitate development of systems
> for]{.smallcaps}**
>
> **[handling workplace disputes 23]{.smallcaps}**

### 

> 1\. Dispute Systems Design Generally 23
>
> 2\. FMCS Involvement in Dispute Systems Design 23
>
> 3\. Strategies:
>
> a\. Short term 23
>
> b\. Long term 23

**[Strategic Goal 4 - assist labor and management in
handling]{.smallcaps}**

> **[major issues Driving Conflict 24]{.smallcaps}**
>
> 1\. Strategies 24
>
> **[Strategic Goal 5 --]{.smallcaps} EXPAND AGENCY PARTICIPATION**
>
> **IN EMPLOYMENT DISPUTE RESOLUTION [25]{.smallcaps}**
>
> 1\. Prioritization of ADR Work 25
>
> 2\. Strategies:
>
> a\. Determine Criteria for Focusing on ADR Work 25
>
> b\. Preliminary Determinations 25

### I. FMCS SERVICES:

The 1947 Taft-Hartley amendments to the National Labor Relations Act,
(herein called the Labor Management Reporting Act, or the LMRA)
established the FMCS as an independent agency charged with mediating all
labor-management disputes substantially affecting interstate
commerce.[^1] Congressional intent is to advance and promote the best
interests of employers and employees through the collective bargaining
process, mediation of disputes and voluntary arbitration.[^2]

For fifty-eight years, FMCS has embraced these principles. The Service's
programs, developed and enhanced over the decades, demonstrates our
commitment to the prevention or minimization of interruptions to the
free flow of commerce growing out of labor disputes, and to improving
the relationship between labor and management. Core services, described
below, are designed to resolve conflict when it arises and prevent it
before it begins.

**[A. Collective Bargaining and Grievance Mediation:]{.underline}**

Mediation of collective bargaining contract negotiations has been the
primary work of this Agency. This includes mediation for an initial
contract and contract renegotiations. FMCS also handles grievance
mediation, which is the mediation of grievances that arise during the
life of a contract. Each case, whether it is grievance mediation or
collective bargaining mediation, presents its own demands. The
mediator's task is to develop alternative solutions and compromises,
encourage settlement where appropriate, control the critical timing of
offers, and persuade the parties to honestly identify their differences.

FMCS has jurisdiction over the private sector and the federal
sector.[^3] FMCS gets involved in public sector cases where there is no
viable state mediation service or when one exists, by the request of the
state agency and the parties. Federal sector work includes mediation of
mid-term contract disputes, mediation over terms and conditions of
employment in successor contracts, and other alternative dispute
resolution systems. In FY 2003, federal sector work represented 11% of
our caseload. Health care institutions represented 9.2% of our
workload.[^4]

**[B. Relationship Development and Training:]{.underline}**

Although the Agency's primary focus continues to be resolution of
conflict as it arises, prevention of conflict at the outset remains an
equally important goal. Practically since its inception, FMCS has
offered relationship-development and training programs (RDT) designed to
improve the labor-management relationship and develop approaches toward
collective bargaining that prevent friction or disputes from arising.
The training improves the quality of the parties' relationship and makes
contract negotiations more effective. In FY 2003, RDT work represented
16.2% of our workload, and in FY 2004, it represented 15.2% of our
workload. The increase in average duration of contracts has created a
demand for these training programs.

**[C. Employment Mediation:]{.underline}**

Outside the collective bargaining arena, FMCS has been involved in other
ADR programs in the public sector (state and local levels) and the
federal sector. The Administrative Dispute Resolution Act of 1996
expanded FMCS's role as a provider of ADR services. The legislative
design was to expand the use of alternative dispute resolution
throughout the federal government, reduce litigation costs, and promote
better government decision-making. FMCS mediates employment disputes,
and provides consultation, training, dispute resolution systems design
and facilitation services to many federal agencies, and to state and
local agencies. These services are also offered to the private sector to
resolve workplace disputes falling outside of the traditional collective
bargaining context, i.e., equal employment opportunity disputes.

**[D. International Training and Exchange:]{.underline}**

FMCS plays an important role in promoting collective bargaining and
conflict resolution in other nations. FMCS international efforts are
designed to level the economic playing field for American companies and
workers by strengthening the rule of law and workers\' rights in
developing countries. The program advocates core labor standards through
the creation of stable and productive work forces needed to attract
foreign investment and to improve living conditions. Equally important,
FMCS helps developing democracies establish labor relations institutions
that are key to the smooth functioning of free market economies. Our
international work is a small, but integral part of our services.

Promoting peaceful and constructive labor-management relationships has
an effect on social dialogue and consensus decision-making beyond the
industrial relations arena. These skills not only promote workplace
democracy and solutions to human rights problems, but also promote
sustainable economic development and the expansion of democratic
institutions.

**[E. Arbitration Services:]{.underline}**

Arbitration is favored by national labor policy and is used almost
universally to resolve disputes arising over contractual terms. The
statute, 29 U.S.C. Section 172 and 173, encourages the FMCS to provide
arbitration services for resolution of labor disputes. FMCS maintains a
roster of 1400 private arbitrators and, upon request from the parties,
FMCS furnishes a list of names from which they can choose an arbitrator
to hear their case and render a decision. Standards are maintained for
credentialing arbitrators, and the Agency requires continuing education
and ethics training. A customer complaint mechanism is used to address
complaints by the parties.

**[F. Grants Program:]{.underline}**

The 1978 Labor-Management Cooperation Act authorizes and directs the
Service to encourage and support joint labor-management committees
"established for the purpose of improving labor-management
relationships, job security and organizational effectiveness, enhancing
economic development or involving workers in decisions affecting their
jobs including improving communication with respect to subjects of
mutual interest and concern.\"[^5] Congress funds this initiative in the
Agency's annual appropriations, and grants are distributed to encourage
labor-management committees to develop innovative, joint approaches to
workplace problems.

**[G. FMCS Institute For Conflict Resolution:]{.underline}**

The FMCS Institute provides training and education to labor and
management practitioners in a centralized classroom format. Institute
classroom training, provided away from the workplace, maximizes
communication among all the participants. Institute courses are designed
specifically for labor relations practitioners that want to build their
skills in alternative dispute resolution. The Institute runs as a
reimbursable program and is funded by fees received for delivery of
training.

**II. ASSESSMENT OF EXTERNAL FACTORS AFFECTING GOALS AND OBJECTIVES**

A variety of forces impact the labor relations environment in which we
work. Listed below are the significant trends impacting the Agency and
its mission. We are mindful of them and continue to monitor developments
in order to respond to evolving trends.

**[A. Globalization of Industry:]{.underline}**

Globalization has been defined as \"the increasing integration of the
world\'s peoples and nations, brought about by expanded international
flows of trade, investment, labor, capital, knowledge and
information.\"[^6] Improvements in technology, e.g., satellite
communications, fiber optics, and technologically superior equipment,
has advanced globalization of industry and integration of markets.
American businesses now compete in a global marketplace where goods cost
less to produce in other parts of the world, significantly impacting the
American workforce.

**[B. Impact of Technology:]{.underline}**

Globalization has been accompanied by rapid improvements in technologies
that offer businesses the opportunity to reduce production costs.
Manufacturing jobs lost are not liable to return because of more
efficient machines and processes. Production jobs have been transferred
to lower cost areas, including abroad where labor is cheaper.[^7] This
factor upsets traditional modes of business and impacts the workplace.
To remain competitive in world markets, American businesses continue to
develop innovative technological approaches to keep pace with the rapid
changes in the global economy. The accelerated pace of change causes
workplace uncertainties, and job loss, and has profound implications for
contract negotiations and cooperative relationships.

**[C. Economic Forecasts:]{.underline}**

**1. Uncertainty of Business Cycles:**

The National Bureau of Economic Research is the arbiter of business
cycle dating information and declares when the economy is in recession
and when the recovery begins. The recovery cycle begins with an increase
in gross domestic product, and generally is followed by a decline in the
unemployment rate. Uncertainty and ambiguity in economic forecasting
makes it difficult for businesses to plan ahead, directly impacting the
work force.

Increased pressure on productivity and the uncertainty in predicting the
start and end of business cycles have a direct impact on collective
bargaining. Management continues to seek cost-saving measures while
using technology to increase productivity,[^8] while labor desires to
maintain or increase wages, health benefits, and job security in the
face of uncertain times. Economic uncertainty causes tension between the
parties, complicates collective bargaining negotiations, and strains the
labor-management relationship even after agreement has been reached. We
continue to monitor these economic trends and work with the parties to
improve their relationship as they navigate through difficult economic
times.

**2. Occupational and Industry Growth:**

Related to economic forecasting are projections for occupational and
industry growth. We monitor these trends in order to keep pace with the
labor force, e.g., which sections of the economy anticipate growth,
which expect a decline, and the overall occupational demographic of the
work force. The Bureau of Labor Statistics reports the following
significant trends:[^9]

-   The service-producing sector will continue to be the dominant
    employment generator in the economy, adding 20.5 million jobs
    by 2010. Within the goods-producing sector, construction and durable
    manufacturing will contribute relatively modest employment gains.

-   As employment in the service-producing sector increases by 19
    percent, manufacturing employment is expected to increase by only 3
    percent over the 2000-2010 period. Manufacturing will return to its
    1990 employment level of 19.1 million, but its share of total jobs
    is expected to decline from 13 percent in 2000 to 11 percent in
    2010.

-   Health services, business services, social services, engineering,
    management, and related services are expected to account for almost
    one half of non-farm wage and salary jobs added to the economy
    during the 2000-2010 period. These sectors account for a large share
    of the fastest-growing industries.

-   Transportation and material moving occupations are projected to grow
    15%, about the same as the average for all occupations.

-   Office and administrative support occupations are projected slower
    than average, reflecting long-term trends in office automation.

-   Production occupations should grow "much more slowly" than average
    because of advances in manufacturing technology.

**[D. Rising Health Care Costs:]{.underline}**

Surging health care costs will undoubtedly pervade collective bargaining
negotiations for years to come. Health care costs have increased
significantly because of advances in medical technology, an aging
population, increased use of hospitals and prescription drugs, and the
increasing number of uninsured whose health care costs burdens other
payers, including businesses and their employees. Additionally, the
Bureau of Labor Statistics predicts that health services wage and salary
growth will increase by 4.6%, also increasing the costs of health care.
All of these cost factors are largely beyond the control of labor and
management. However, health insurance costs, who will pay for it, and
how the parties apportion the cost, has become the single most important
issue during bargaining, overtaking wages and job security issues.
Employers contend that soaring health care costs have hurt
competitiveness, and if they cannot pass on some of the cost to
employees, by raising employee contributions, co-payments, or
deductibles, jobs will be eliminated. Even profitable employers are
seeking pay apportionment changes.[^10] Employee-paid premiums and
out-of-pocket costs rose 24% in 2003. Labor continues to fight increases
in employee contributions. Labor relations academicians predict that
this divide is likely to spawn an increase in strike rates
nationwide.[^11]

**[E. Effect of September 11, 2001:]{.underline}**

Since the attacks of September 11, 2001, the resultant security fears
and the perceived need for increased vigilance in general, have affected
FMCS's approach to labor-management conflict resolution. To some extent,
the desire for additional security measures in certain workplaces has
affected contract negotiations and other mid-term bargaining. An
ancillary effect is the significant disruption in the airline, hotel and
restaurant industries, where companies have reported a drop in earnings
due to the decrease in travel. These economic pressures affect contract
negotiations as well. Additionally, the parties are less willing to
travel for bargaining, labor-management conferences, training programs,
and certain labor-management cooperative partnership work. The Agency
continues to work with the parties well in advance of contract
expiration to reduce or manage disputes during renegotiation, while
simultaneously reducing the need to travel for collective bargaining
purposes.

The Homeland Security Act of 2002, a direct result of the September 11
attacks, has the potential for future impact on the Agency's work. The
Act makes the services of the FMCS available to the parties to
"facilitate the process of attempting to reach agreement" on proposed
personnel changes. Mediation and facilitation services have been offered
to the Department of Homeland Security for employment disputes.

**[F. Increase in Contract Duration]{.underline}**

From fiscal years 2000 through 2003, 20% to 22% of collective bargaining
agreements exceeded three years. This steady trend can improve the
labor-management relationship: longer contract periods bring stability
and consistency. Yet the same trend can pose inherent dangers:
accumulation of unresolved issues during the life of a contract,
increased grievances to challenge ambiguous contract language, and
contentious bargaining over successor contracts. The parties'
relationship during a lengthy contract period can be complex and may ebb
and flow with periods of complacency followed by, or coupled with,
tension during the renegotiation period. Rapid adjustments to market
shifts and technological innovation heightens the need for positive
relationships that are primed to respond with needed mid-contract
adjustments. FMCS continues to train the labor-management community in
cooperative problem solving techniques and to provide grievance
mediation services to resolve conflicts arising between more distant
renegotiations.

**[G. Changing Face of Labor and Corporate
Consolidations:]{.underline}**

In July 2005, Service Employees International Union, International
Brotherhood of Teamsters and the United Food and Commercial Workers
Union disaffiliated with the AFL-CIO. It is too early to tell the
precise impact on collective bargaining, but it will have an impact on
organizing efforts and will likely impact positions taken at the
bargaining table.

Additionally, with the aggregate decline of union membership,[^12] there
has been a corresponding increase in union mergers at local and national
levels.[^13] Mergers enhance bargaining and organizing power, eliminate
duplication of effort, and increase financial and administrative
resources. However, mergers also bring turnover in leadership within the
organization and inexperienced labor leaders often do not have a grasp
of relevant workplace issues, business concerns or the negotiation
process. This can have an effect on the collective bargaining process,
and makes it more difficult for *both* parties to reach a settlement.

On the management side, corporate downsizing through consolidation and
layoffs can also have a significant impact on the workplace. Some
economists assert that corporate downsizing neither restores the
competitive edge, nor boosts productivity, as previously believed.
Instead, downsizing can leave \"surviving\" employees over-burdened and
demoralized, hurting productivity and relationships between employees
and management.[^14] Although the rate of corporate mergers and
acquisitions fell in 2002[^15] when they do occur, they can lead to
rapid turnover at the executive level, with an ancillary and taxing
effect on the employees below.

**[H. Labor Force Demographics:]{.underline}**

The demographic composition of the work force will undergo
transformation due to changes in the composition of the population and
rates of work force participation across demographic groups. Expansion
of the immigrant work force population and generational changes due to
retiring employees will impact the bargaining process. Changes in the
"face" of the labor force impacts bargaining particularly where labor
and management have difficulty adjusting to needs of the changing
workplace. Bureau of Labor Statistics reports some significant
trends:[^16]

-   In 2010, the baby-boomers will be ages 46 to 64, and this age group
    will account for a substantial share of the labor force. The median
    age of the labor force will continue to rise, even though the youth
    labor force (aged 16 to 24) is expected to grow more rapidly than
    the overall labor force for the first time in 25 years.

-   The labor force participation rates of women in nearly all age
    groups are projected to increase. The women\'s labor force will grow
    more rapidly than the men\'s, and the women\'s share of the labor
    force will increase from 47 percent in 2000 to 48 percent in 2010.

-   The Asian and the Hispanic labor forces are projected to increase
    faster than other groups, 44 percent and 36 percent, respectively,
    because of high net immigration and higher than average fertility.
    The African American labor force is expected to grow by 21 percent,
    more than twice as fast as the 9 percent growth rate for the white
    labor force.

-   White non-Hispanics accounted for 73 percent of the labor force in
    2000 but their share of the labor force in 2010 will decrease to 69
    percent.

Such a diverse work force has potential for strife, and if unmanaged,
can develop into unresolved conflict.

**[I. Increased Acceptance of Alternative Dispute
Resolution:]{.underline}**

The use of alternative dispute resolution is not a new phenomenon.
However, the breadth, volume, and systematic usage of ADR has grown.
Throughout society, ADR has become the preferred choice in working
toward settlement ranging from family disputes to neighborhood,
environmental, intergovernmental, legal, and workplace disputes. FMCS
has more collective experience in dispute resolution than any other
agency of government and can offer its services within and beyond the
workplace.

**III. Mission, VISION, AND Values STATEMENTS**

**[A. Mission Statement:]{.underline}**

FMCS's mission statement reflects the statutory intent of the Agency.
Our mission is to:

-   Promote the development of sound and stable labor management
    relationships;

-   Prevent or minimize work stoppages by assisting labor and management
    to settle their disputes through mediation;

-   Advocate collective bargaining, mediation and voluntary arbitration
    as the preferred processes for settling issues between employers and
    representatives of employees;

-   Develop and advocate the art, science and practice of conflict
    resolution through the use of ADR;

-   Assist parties in conflict through the provision of conflict
    resolution services; and

-   Foster the establishment and maintenance of constructive joint
    processes to improve labor-management relationships, employment
    security and organizational effectiveness.

**[B. Vision Statement:]{.underline}**

The Agency helps build better relationships through joint
problem-solving and constructive responses to inevitable conflict. In
turn, this improves the ability of organizations to create value for
customers, shareholders and employees alike, and substantially benefits
the national economy. The Agency concentrates its efforts on assisting
employers and employees to cope with the demands of a rapidly changing
workplace. Trends that the Agency views as particularly important
include significant increases in: (1) the cost and complexity of health
care; (2) the globalization effects on the workplace; (3) the
application and importance of technology in the workplace; and (4)
workplace litigation and conflict arising largely outside the scope of
collective bargaining and focusing on individual employees. With nearly
60-years of providing mediation and facilitation services, FMCS has more
collective experience in dispute resolution than any other agency of
government.

**[C. Values Statement:]{.underline}**

Reflecting the Agency's mission statement, our commitment to a viable
collective bargaining system, and the benefit of effective conflict
resolution processes as a foundation for society's well being and
economic growth, this value statement embodies our core principles:

-   Relationships are critical to the success of an organization: they
    affect creativity, productivity and adaptability, as well as the
    quality of workplace life.

-   Poor relationships and communication represent a substantial barrier
    to achieving the kind of process innovation and high performance
    work organization demanded in the current business climate.

-   The Agency's core mission of mediating and facilitating the
    resolution of workplace disputes and problems requires absolute
    neutrality, confidentiality, and acceptability to customers.

-   In order to have maximum impact and to meet statutory obligations,
    the Agency must focus primarily on organizations and matters having
    the greatest effect on interstate commerce and/or public health and
    safety.

-   Collaborative, problem-solving approaches to the resolution of
    conflict should be cultivated and encouraged whenever possible.

**IV. GOALS**

The Agency's goals, set forth below, are broad guidelines that shape our
future and influence decision-making processes. These objectives, and
the strategies used to achieve these goals, are wide-ranging in scope
and will be reviewed and refined annually.

**[[Strategic Goal 1:]{.underline}]{.smallcaps}**

[To minimize the number and severity of work stoppages substantially
influencing interstate commerce, national security, and/or the U.S.
health care industry, by use of mediation and other dispute resolution
processes.]{.smallcaps}

**[[Strategic Goal 2:]{.underline}]{.smallcaps}**

[To increase the number of collective bargaining partners with a real,
detailed, and ongoing commitment to developing improved labor-management
relationships and more effective problem-solving
techniques.]{.smallcaps}

**[[Strategic Goal 3:]{.underline}]{.smallcaps}**

[To facilitate a commitment to, and development of, systems for handling
workplace disputes arising outside of the collective bargaining
context.]{.smallcaps}

**[[Strategic Goal 4:]{.underline}]{.smallcaps}**

[To assist labor and management to increase their understanding of, and
effectively deal with, major issues that drive conflict in the evolving
workplace, including health care, technology, effects of globalization,
and diversity.]{.smallcaps}

**[[Strategic Goal 5:]{.underline}]{.smallcaps}**

EXPAND AGENCY PARTICIPATION IN EMPLOYMENT DISPUTE RESOLUTION

**[V. STRATEGIES:]{.underline}**

[**[Strategic Goal 1:]{.underline}** Minimizing the number and severity
of work stoppages influencing interstate commerce, National Security,
and/or the U.S. health care industry.]{.smallcaps}

**[1. Definition of "Severe" Work Stoppages:]{.underline}**

The Agency's statutory mission is to prevent or minimize strikes that
interrupt the free flow of commerce. Accordingly, our task is to reduce
the number and severity of work stoppages in general. Achieving these
goals requires defining a "severe" work stoppage. There cannot be, nor
should there be, a bright line test that determines a work stoppage to
be severe, for each work stoppage is unique to its geographical
location, the industry involved, the community where it occurs, and the
impact on related industries inside and outside the community. The
following list of factors was developed to help determine the severity
of a work stoppage:

-   Economic impact, including a shutdown of a major industry or
    ancillary industry;

-   Substantial job loss, although the precise number might vary
    depending on the circumstances;

-   Impact of the work stoppage on the community and its residents;

-   Workplace violence, such as picket line violence;

-   National security issues, such as a work stoppage in an industry
    providing goods or services to the Department of Defense or the
    Department of Homeland Security;

-   Health care, where a work stoppage risks the well-being of patients
    at acute care and other health care institutions;

-   International impact, where our trading partners, relying on our
    goods and services, show concern about the work stoppage and its
    impact on their economies; and/or

-   Unit size, although the size of the unit, on its own, may not be a
    factor, but it can have an overall economic impact.

> These criteria can be evaluated either in the disjunctive or the
> conjunctive; any one of them individually or collectively might be
> sufficient to warrant a conclusion that a work stoppage is "severe,"
> although it is likely that more than one factor will be present when
> concluding that a work stoppage is severe. Each of the indicia listed
> above will become part of the Agency's case tracking system so that
> data can be collected on severe work stoppages.

**[2. Strategies:]{.underline}**

> **[a. Estimate Economic Impact of Work Stoppages:]{.underline}**
>
> The economic impact of work stoppages is not easily ascertained. There
> are a number of factors to consider and the Agency will explore
> economic impact models that can best estimate the impact of a work
> stoppage on the economy. Any matrix developed will include the
> following indicators:

-   Wage impact -- approximating the actual dollars lost due to a
    strike;

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-   Product/service impact -- approximating the dollars lost in
    production and/or sales;

-   Multiplier effect - the direct or indirect impact of the strike on
    other industries; and

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-   Effect of the strike on the community in which the strike occurred.

> **[b. Estimate Economic Benefits of Preventing and/or Reducing
> Disputes]{.underline}**:
>
> Mediators use a significant number of techniques to resolve disputes,
> and it is extremely difficult to determine which techniques achieve
> greater success over any other. However, the benefits of mediation to
> the economy can be measured through the development of formulas and/or
> matrixes that estimate:

-   the percentage of work stoppages averted because of mediator
    involvement;

-   the number of strike duration days reduced because of mediator
    involvement; and

-   the direct or indirect impact of the strike on other industries.

> Cooperative relationships will be developed with labor economists to
> develop economic models that address these issues.

**[c. Active Involvement in Disputes with Significant Impact on
Commerce:]{.underline}**

> Historically, there have been industries where either labor or
> management resisted mediation efforts to resolve their disputes. Some
> of those industries have a significant impact on commerce. Penetrating
> those industries to resolve disputes would benefit that industry as
> well as the economy as a whole. To assure the free flow of commerce in
> these industries, the Agency will:

-   Determine the industries where the FMCS has not been actively
    involved in disputes;

-   Create a working group to identify why we have not penetrated
    certain industries and how mediation services can be provided in
    industries that have a "significant impact" on interstate
    commerce/economy;

-   Develop a detailed plan for penetrating industries that would
    include the following:

    -   Relationship building: Developing relationships with the parties
        through high-level meetings with representatives of organized
        labor at the international level and management at the highest
        levels;

    -   Tripartite cooperation: Developing a tripartite panel to
        increase penetration in disputes in specific industries that
        have significant impact on interstate commerce. Cooperate with
        senior labor and management representatives in significant
        industries to minimize impacting work stoppages; and

    -   Assign a "coordinator" for significant industries: Once
        "significant industries" are identified, assign "coordinators"
        as the point of contact to handle specific industry disputes
        that impact on interstate commerce. Where a dispute is
        considered "significant," the national office will be notified
        prior to assignment.

**[d. Special Focus on Industries Critical to the
Economy:]{.underline}**

> There are some industries where the FMCS remains an active presence
> and is regularly involved in disputes. Currently, when a dispute
> arises in industries critical to the economy, resources are realigned
> to give that dispute priority. The case may be assigned based on
> expertise developed by a particular mediator, and the Office of the
> Director is advised of high-profile disputes. However, more can be
> done to enhance FMCS impact, including:

-   In "significant case assignments," consult with the local director
    of mediation services to discuss the issues and determine
    appropriate resource allocation;

-   Pre-assign significant cases even prior to receipt of the statutory
    8(d) notice of contract expiration;

-   Develop industry-specific expertise across the organization;

-   Use technology to information-share (within the Agency) common
    issues that develop nationwide;

-   Succession-planning in situations where mediators have strong
    industry expertise; and

-   Greater emphasis on teamwork cross-regionally and with the national
    office, with incentives for teamwork.

**[e. Health Care Industry:]{.underline}**

> As indicated in Section II, health care services are one of the
> fastest growing industries. The health care industry continues to
> expand and common issues continue to plague negotiations in which we
> are active. FMCS will continue to examine whether there are bargaining
> issues unique to certain sectors of the health care industry (acute
> care hospitals, other health care facilities, and home health care)
> and information will be gathered on industry trends from a variety of
> sources. To promote interagency information sharing, and to increase
> the knowledge of the field mediators in the health care industry and
> the issues facing it, the public affairs director will gather and
> circulate information regarding industry trends, along with a list of
> pending health care cases tracking specific information, including:

# issues involved, e.g., staffing or overtime; 

# trends in specific units, e.g., licensed practical nurses, registered nurses, or nurses aides; 

# cost pressures, e.g., costs of providing health care to patients versus cost of labor; 

# consolidating/merger issues; 

# community concerns, e.g., neighborhood concerns, sole health care institutions within a community, and access to health care; and

# effect on patient care. 

[**[Strategic Goal 2]{.underline}**: increase the number of collective
bargaining partners with an ongoing commitment to improving their
relationship.]{.smallcaps}

**[1. Definition of "Improved Relationship"]{.underline}**:

This goal specifically relates to the Agency's training and facilitation
programs (relationship development and training) designed to improve the
labor-management relationship and develop approaches toward collective
bargaining that prevent friction or disputes from arising. Evaluating
whether these programs have "improved" the parties' relationship
involves subjective and objective measurements, and, at a minimum, a
clear definition of an "improved relationship." Our definition of an
"improved" labor-management relationship includes these factors:

-   Organizational self-definition of "improved relationship" from the
    parties' perspective;

-   Effective resolution of workplace disputes/grievances (quality of
    the resolution);

-   Reduction in workplace disputes/grievances (quantity or number of
    grievances on file);

-   Open communications;

-   Increased productivity;

-   Support for labor-management committees by high level
    labor-management representatives;

-   Commitment, in writing, to an improved relationship;

-   Proactive information-sharing prior to conflict arising; and

-   Assessing the parties' relationship on an ongoing basis.

**[2. Strategies]{.underline}**:

> **[a. Number of Collective Bargaining Partners Committed to
> Cooperation]{.underline}**:

We will gather data, measure, and report the number of collective
bargaining partners that have demonstrated an intent to collaboratively
resolve workplace issues such as:

-   Workplace violence

-   Diversity

-   Effects of globalization

-   Health care issues

-   Technology

-   Job security

-   Competitiveness

-   Retirement benefits

-   Legacy costs

-   Cross training opportunities/succession issues

-   Downsizing/Rightsizing

-   Merger, consolidation and reorganization

**[b. Measuring Effectiveness of Programs to Improve Labor-Management
Relationships:]{.underline}**

To measure the effectiveness of our programs, we will conduct periodic
customer surveys and the parties will be informed of our intent to
assess the relationship in the future. A customer survey will be
conducted immediately after the training or other program, six months
later, and one year later, and there shall be periodic visits by the
mediator. The survey instrument will focus on these core questions:[^17]

-   What prompted the program?

-   Did it meet your expectations?

-   Would you use it again?

-   Did it have an impact on your relationship? Explain how.

> **[c. Guidelines to Assess Relationship-Building
> Programs:]{.underline}**

All of the Agency's training and facilitation programs are designed to
improve the labor-management relationship, but there are some
relationship development and training programs that have a greater
emphasis on relationship-building. The relationship-by-objective (RBO)
program is designed to improve labor-management relationships that
severely deteriorate after a strike, contentious election campaigns, or
difficult negotiations. Committee effectiveness training (CET) is geared
toward helping the parties work jointly and collaboratively in group
settings. Labor-management committees (LMCs) are designed to continue
without mediator assistance. These committees are fundamentally based on
joint problem solving tools. These three programs emphasize relationship
building and we will develop guidelines that regularly assess the
parties' relationship after these kinds of programs.

> **[d. Periodic Reviews of Training and Facilitation
> Programs:]{.underline}**

Based on the feedback received from customer surveys, there will be
continuous evaluation of the training and facilitation programs,
including efforts to improve them and adding new programs as necessary.

**[[Strategic Goal 3:]{.underline}]{.smallcaps}**

[To facilitate a commitment to, and development of, systems for handling
workplace disputes arising outside of the collective bargaining
context.]{.smallcaps}

**[1. Dispute Systems Design Generally]{.underline}**

The Agency has partnered with the Straus Institute for Dispute
Resolution at Pepperdine University to research and develop approaches
to dispute resolution systems design in the workplace. The focus is on
systems that address conflicts in the unionized workplace that are not
ordinarily handled through an organization's collective bargaining
agreement (e.g., statutory, rights-based disputes as well as underlying
problems in relationships, morale, etc.).

**[2. FMCS Involvement in Dispute Systems Design]{.underline}**

Rather than prescribing a particular design or product, FMCS expects to:

-   Promote the use of helpful approaches to dispute systems design to
    the labor and management communities;

-   Provide convening services to both labor and management regarding
    dispute systems: preliminary interest, structure for the
    negotiations, and facilitation of the decision to proceed;

-   Facilitate the design negotiations for a given workplace;

-   Support training for key personnel implementing a dispute systems
    project;

-   Provide technical support for implementation of a dispute systems
    project; and

-   Help evaluate the effectiveness of systems after implementation and
    develop metrics or appropriate benchmarks for success.

**[3. Strategies:]{.underline}**

a\. **[Short term]{.underline}**: This project will be piloted on a
small scale. During the pilot phase, the program will be rolled out in a
select few industries (perhaps as few as two or three enterprises). The
pilot programs will be carefully evaluated with recommendations for
change as may be appropriate.

b\. **[Long term]{.underline}**: If the pilot programs show substantial
promise, the effort will be expanded. All mediators will be offered
initial training. Those who indicate an interest in comprehensive
participation will receive more in-depth training in this area. Regional
management will have the discretion to assign the work to those with
requisite ability and desire.

[**[Strategic Goal 4]{.underline}**: assist labor and management to
effectively deal with major issues that drive conflict in the evolving
workplace, including health care, technology, effects of globalization,
and diversity.]{.smallcaps}

**[1. Strategies:]{.underline}**

Section II identified many of the trends and factors that effect
collective bargaining today. Bargaining takes place in an environment
laden with rapid changes: technological advancements, rising health care
costs, and a demographically changing work force which now includes a
high percentage of immigrants, employees of different races and national
origin, and generational divisions. Our task is to prepare ourselves and
the parties to deal with these trends that drive conflict in the
workplace. To meet these demands, we will:

-   Develop internal seminars and training programs in critical
    industries, including telecommunications, health care, and
    aerospace, to educate field staff on specific critical labor issues
    arising in these industries and how to deal with them at the
    bargaining table.

-   Develop best practices to address health care issues that arise at
    the bargaining table and devise successful solutions.

-   Use field mediators to develop expertise in each of these areas and
    develop training programs for roll-out to the field (utilizing more
    than one mediator to develop the programs to encourage buy-in).

-   Train all mediators so that they can effectively handle these
    difficult issues when they arise.

-   Alter work stoppage reports and benchmark them with these specific
    issues (i.e., health care, technology, globalization and diversity)
    in order to measure the percentage of strike situations where these
    issues were factors.

-   Train the labor-management community on how to effectively bargain
    over these complex issues and measure how many training sessions we
    conducted for the labor-management community.

[**[Strategic Goal 5]{.underline}**:]{.smallcaps} EXPAND AGENCY
PARTICIPATION IN EMPLOYMENT DISPUTE RESOLUTION

**[1. Prioritization of ADR Work:]{.underline}**

Since the passage of the Administrative Dispute Resolution Act of 1996,
the Agency has expanded its practice of alternative dispute resolution
outside the workplace collective bargaining context. The scope and usage
of ADR nationwide has grown to encompass environmental,
intergovernmental, courtroom, and workplace disputes. ADR has become the
preferred choice in working toward settlement. FMCS mediation skills and
extensive experience places us in a unique position to offer
cost-effective dispute resolution outside of the collective bargaining
context.

**[2. Strategies:]{.underline}**

**[a. Determine Criteria for Focusing on ADR Work:]{.underline}**

Limited resources compel us to make choices in determining the kind of
ADR work the Agency focuses on. Accordingly, we have developed critical
factors to apply in determining whether particular work appropriately
fits our statutory mission:

-   **Workplace nexus**: is the dispute employment-related?

-   **Impact on core mission work**: does the work have any positive or
    negative impact on traditional collective bargaining mediation?

-   **Impact on interstate commerce, on the workplace, and on the
    community:** does it involve a dispute that impacts the free flow of
    commerce, the workplace as a whole, or the community in which it is
    centered?

-   **Scope or nature of the conflict/project** (breadth and depth on
    both the domestic and international stage): does the work have
    national implications, or does it have significance in the
    international arena?

-   **"Return" or benefits**: how does our involvement in that
    particular work benefit the Agency, the public and our mission? How
    does the benefit balance against the cost?

-   **Financial and human capital resource allocation needs**: what are
    the resources required to accept the assignment?

**[b. Preliminary Determinations:]{.underline}**

Looking forward, the Agency will continue to evaluate the ADR program
and determine the appropriate focus for the future. In the meantime, we
have applied the above criteria and, at a minimum, determined that the
Agency should focus on:

-   **[Government and federal administrative agencies]{.underline}**:
    Generally, where there is a governmental interest, or where the work
    is inherently governmental, FMCS should have substantial involvement
    because of the statutory intent of the Administrative Resolution Act
    of 1996.

-   **[State and local agencies]{.underline}** (political and
    administrative divisions of the state): Coordinate, communicate, and
    cooperate with state and local agencies for efficient delivery of
    services.

-   **[International organizations and foreign
    governments]{.underline}**: Training for friendly foreign
    governments, ILO local officials, and NGOs, in conflict resolutions
    skills to resolve workplace disputes and in building mediation
    agencies.

[^1]: FMCS jurisdiction under Taft-Hartley excludes the rail and airline
    industries, which are covered by the Railway Labor Act and the
    National Mediation Board.

[^2]: Section 201 of the LMRA.

[^3]: In 1974, the Service's jurisdiction was expanded to include health
    care institutions, and in 1978, our jurisdiction was expanded
    further to include disputes arising in the federal sector. In 1979,
    Congress extended our jurisdiction to the U.S.P.S.

[^4]: All statistics and percentages were generated from the Agency's
    case tracking system from fiscal year 2002 data.

[^5]: Section 205A(a)(1).

[^6]: Melloan, G. (2002, September 3). "Workers of the World Are
    Shedding Their Chains." *Wall Street Journal*, citing Linda Y.C. Lim
    of the University of Michigan Business School.

[^7]: By some estimates, roughly 1.3 million manufacturing jobs have
    moved abroad since 1992, the bulk in the past three years to Mexico
    and East Asia. See Ansberry, C. (2003, July 21). "Laid-Off Factory
    Workers Find Jobs are Drying Up for Good." (*Wall Street Journal)*.

[^8]: Ibid.

[^9]: Note that all of the information listed below was secured from the
    Department of Labor, Bureau of Labor Statistics from July 2003. See
    <http://www.bls.gov/news.release/ecopro.nr0.htm>.

[^10]: See Greenhouse, S (2003, July 11). "Unions Finding That Employers
    Want More Concessions." (*The New York Times*).
    <http://www.nytimes.com/2003/07/11/national/11LABO.html>.

[^11]: See generally Stires, D (2003, March 3). "The Breaking Point ;
    Worker health costs will rise a staggering 24% this year. Companies
    can no longer afford to pick up the bill. The battle is here."
    (*Fortune Magazine)*

[^12]: In January 2005, the United States Department of Labor's Bureau
    of Labor Statistics reported that 12.5 percent of wage and salary
    workers were union members, down from 12.9 percent in 2003. The rate
    for private industry workers was 7.9 percent in 2004. See Bureau of
    Labor Statistics News Release, "Union Members 2004," January 27,
    2005, at
    [http://www.bls.gov/news.release/union2.nr0.htm](http://www.bls.gov/news.release/union2.nr0.htm ).

[^13]: See Williamson, L (1995) "Union Mergers, 1985-1994 Update,"
    *Monthly Labor Review.*
    <http://www.bls.gov/opub/mlr/1995/02/art2full.pdf>.

[^14]: See Hilsenrath, J (2001, February 21). "Many Say Layoffs Hurt
    Companies More Than They Help \-\-- \'The Evidence Is Very Weak\'
    That Downsizing Boosts Productivity." (*Wall Street Journal*). 2001
    WL-WSJ 2854935

[^15]: See Frank, R (2002, June 25). "Where Have the Masters of the Big
    Mergers Gone? \-\-- As Corporate Acquisitions Cede To Divestitures
    and Spinoffs, Epoch of Big Deals May Be Over." (*Wall Street
    Journal*). 2002 WL-WSJ 3398864

[^16]: ? Note that all of the information listed below was secured from
    the Department of Labor, Bureau of Labor Statistics, July 2003.
    <http://www.bls.gov/news.release/ecopro.nr0.htm>. In particular, see
    Table 5 at <http://www.bls.gov/news.release/ecopro.t05.htm>.

[^17]: We will explore various methods for conducting the survey,
    including face-to-face surveys, telephonic surveys, use of
    technology for on-line surveys, or use of the "feedback" section of
    the website.