# Presentation: 761923

## Slide 1

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## Federal Mediation & Conciliation Service

- Impact on
- Labor-Management Relations 2005

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## F.M.C.S. Creation

- Independent agency under Taft-Hartley amendments in 1947.
- Resolve collective bargaining disputes which threaten the free flow of commerce.
- Neither a regulatory nor an enforcement agency, but a neutral designed to assist Labor & Management.

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## F.M.C.S. Mission

- Promote sound & stable L/M relations.
- Prevent/minimize work stoppages through mediation assistance to parties.
- Advocate collective bargaining, mediation & voluntary arbitration.
- Develop the art, science & practice of conflict resolution.
- Foster constructive joint L/M processes.

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## F.M.C.S. Services

- Collective Bargaining Mediation
- Private, Public, & Federal Sectors
- Relationship Development & Training
- Customized training
- Education, Outreach & Advocacy
- Of collective bargaining processes

- Alternative Dispute Resolution
- In-lieu of litigation
- Arbitration Services
- L/M Grants
- International Program
- Youth violence prevention

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## FMCS Impact on U.S. Economy

- FMCS mediation in CBM disputes saved U.S. workers & businesses $9 billion from 1999-2004 by averting work stoppages
- Reduced number of impacted workers by 43.2% (~4.3 million vs. 2.4 million)
- Prevented 1,265 work stoppages between 1999-2004.
- (Source: EPF 2005 Study)

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## Collective Bargaining Mediation

- 2005 U.S. Statistics
- 21,135 contract expirations
- 4,085 closed (active)
- 87% closed/agrmt.
- 1,702 grievance mediation cases
- 270 work stoppages (all size B.U.’s)

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## Work Stoppages(U.S.)(all size bargaining units)

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## Work Stoppage Trends

*Note:  Preliminary data from FMCS-commissioned study*

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##   Hot Topics at the Table

- Job Security
- Subcontracting
- Off-shore job losses
- Staffing issues
- Healthcare industry
- Mandatory O/T
- State legislation

- Pension Benefits
- Defined benefits vs. defined contributions
- Wages / Benefits
- Approx. 3%
- Slightly lower in Mfg., slightly higher in Constr.
- _Health Insurance_
- Rx plan costs
- Co-pays & cost sharing
- Plan design
- MSA’s

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## WHY JOB SECURITY ?

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## JOB SECURITY CONCERNS

**Continuing decline of manufacturing sector jobs**
**Off-shore job losses mounting**
**I.T. jobs**
**Lower wages overseas attractive to bottom line**

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## WHY PENSION BENEFITS ?

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## PENSION PLAN DEBATE

**Corporate accounting scandals**
**Fiduciary litigation**
**Plan investment returns below expectations**
**Bankruptcies**
**PBGC liquidity**

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## WHY STAFFING IN HEALTHCARE INDUSTRY ?

*Source:  Employment Policy Foundation 2005*

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## SOME UNDERLYING CAUSESOF NURSING SHORTAGE

**Hospital Acuity**
**Specialty demand rising**
**Declining enrollments in nursing degree programs**
**Baby-boom bubble**
**Less generation X’ers than boomers **
**Creating smaller pool of entry workers**

**Within 10 years, 40% of RN’s will be 50 years old or older**
**1⁄2 of working RN’s will reach retirement age in next 15 years**

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## WHY HEALTH INSURANCE ?

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## The current system involves health expenditures that constitute over 15 percent of Gross Domestic Product (GDP)

**Projected National Health Expenditures and Percent of GDP**

- Source: Centers for Medicaid and Medicare Services, 2003

- * Estimated

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**Notes:**
Talking Point on Health Care Expenditures: 

The Centers for Medicaid and Medicare Services (CMS), is the government’s source for certain cost trends in health care since CMS funded organizations provide a significant amount of data to CMS that is then used to compile statistics and estimations of health care costs and trends.  In 2003, CMS projected that the U.S. will spend [CHECK NUMBER dollars on health care related expenses by 2013.  That would make health care roughly 18.4% of the gross domestic product in the U.S.  

## Rising national expenditures translate to double-digit premium increases

**Health Insurance Premium Increases**

- Note: Data on premium increases reflect the cost of health insurance premiums for a family of four

- Source: Kaiser Family Foundation, 2005

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**Notes:**
Talking Points on Premium Increases: 

As a general rule, the largest portion of health care funding comes from private health insurance.  Medicaid and Medicare comprise about 32% of the insurance market and SCHIP (State Children’s Health Insurance Program – the equivalent of Medicaid for children under a certain federal poverty line – where the federal government provides money for states) encompasses about 13% of the market.  The rest of the market is private insurers, and the chart above represents premium increases in private insurance costs. 
Every year, Kaiser Permanente does a study on health care trends called “Employer Health Benefits” and it is published on their Web site (www.kff.org).  This year, they indicated that this was the fourth straight year of double digit increases in health insurance premiums, although for 2004, the increase was less than it was in 2003 and 2002.  A cautionary note:  One should not read this statistic as evidence that health care costs are coming down.  Instead, it should be read that the increases in premium costs are slowing down.  The rate of the increase in years past has slowed, but because we are expected to increase our consumption of health care, we can’t assume that premium costs will drop.    

## Health expenditures per person rose 32 percent between 2000 and 2004

- Health expenditures per person rose 32 percent between 2000 and 2004

**National Health Expenditures Per Capita**

- Source: Centers for Medicare and Medicaid Services, 2004

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**Notes:**
Talking Point: 

With the increases in expenditures as a percentage of GDP, health care expenditures per capita have increases as well.  In a short 4-year period, the per capita health care expenditures rose 32% from $4670 to $6167.  

## Relationship Development & Training

- 2005 U.S. Statistics
- Active in 2,279 joint training/process cases

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## Alternative DisputeResolution

- 2005 U.S. Statistics
- Active in 1,376 cases
- (+498% since 1995)
- Increasing number of  Federal agency ADR contracts, and employment mediations

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## A.D.R. Growth(U.S.)

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##   Common reasons for not reaching agreement

- Ineffective communications
- Inaccurate info./data
- Personalities / emotion
- Morals differ

- Internal/external political pressure
- Un-realistic expectations (economic, status, etc.)
- Perception of “Fair”
- Pride

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## WHY USE MEDIATION ?

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## Estimated Direct Financial Impact of Work Stoppages by Year

*Source:  Employment Policy Foundation 2005*

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## Early FMCS Intervention is Key to ReducingWork Stoppage Duration

*Source:  Employment Policy Foundation 2005*

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## Why mediation can be an effective tool for conflict resolution

- Parties retain control of resolution
- Voluntary (in most cases)
- Informal vs. formal process
- Time efficient
- Cost effective

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## When mediation may not be appropriate

- Pre-determined, inflexible positions
- When a “directed” decision is sought
- “Principals”

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## Federal Mediation & Conciliation Service

- Robert S. Ditillo
- Commissioner
- One Oxford Centre, Suite 2570
- 301 Grant Street
- Pittsburgh, PA 15219
- 412-644-4110
- rditillo@fmcs.gov

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## Slide 31

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