FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2014

Congressional Budget Submission

&

Annual Performance Plan
FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2014

Congressional Budget Submission & Annual Performance Plan

Table of Contents

I. Executive Summary................................................................................................ 1

A. Mediation Services............................................................................................ 3

B. Operational Excellence ..................................................................................... 5

C. Conclusion ........................................................................................................ 6

II. FMCS Organizational Chart ................................................................................... 8

III. Appropriation Language ......................................................................................... 9

IV. Statutory and Other Legal Authority .................................................................... 10

V. Budget Tables and Detailed Financial Requirements........................................... 14

VI. Mission and Program Structure ............................................................................ 23

A. Collective Bargaining Mediation.................................................................... 24

B. Grievance Mediation....................................................................................... 24

C. Relationship-Development and Training........................................................ 24

D. Arbitration Services........................................................................................ 25

E. Employment and Regulatory Mediation......................................................... 25

F. FMCS Institute................................................................................................ 26

G. Labor-Management Committee Grants .......................................................... 26

H. International Training and Exchange.............................................................. 26

VII. Workload Projections – FY 2013 and FY 2014.................................................... 28

VIII. Annual Performance Plan ..................................................................................... 31
1

Fiscal Year 2014 Budget Estimates

I. Executive Summary

More than sixty-five years ago, the United States Congress recognized that labormanagement disputes can cause significant economic damage to the U.S. economy and 

that third party, neutral intervention can minimize and even avoid that damage. 

Accordingly, Congress established the Federal Mediation and Conciliation Service 

(FMCS) in 1947 through the Labor Management Relations Act (Taft-Hartley) 

amendments to the National Labor Relations Act (NLRA) as an independent agency 

whose mission is "to assist parties to labor disputes in industries affecting commerce to 

settle such disputes through conciliation and mediation."1

 Subsequent acts of Congress 

and Presidential orders have expanded the FMCS's role to include promoting labormanagement relationships in both the private and public sectors, as well as providing 

employment-based mediation services and alternative dispute resolution (ADR) 

programs, such as negotiated rulemaking, to government agencies.

The FMCS fulfills its statutory obligations both by mediating collective 

bargaining disputes and by assisting employers and unions in developing collaborative 

problem-solving relationships. In all aspects of its work, the FMCS seeks to minimize 

the potential for and the impact of work stoppages and to promote improved labor 

management relationships and organizational effectiveness.

The nation’s uneven progress towards a sustainable economic recovery will 

challenge collective bargaining relationships for the foreseeable future as companies and 

unions that were able to more easily resolve conflicts during periods of economic growth 

often find themselves unable to bridge the enormous divide created when economic 

growth slows or stagnates. Complex and major changes to the structure of employerprovided health care and pension benefits upset decades of consensus and add to 

relationship instability. State and local governments that historically were able to 

maintain or provide modest increases to wages and benefits for their workers have 

 

1 29 USC § 173. By statute, FMCS’s jurisdiction excludes the rail and airline industries, which are covered 

by the National Mediation Board under the Railway Labor Act.
2

insisted on deep concessions as their existing tax bases and revenue streams have 

decreased.

Given the enormous divergence of interests created during these exceedingly 

difficult economic times, experience teaches that constructive labor-management

relationships are fundamental to the parties' ability to solve problems and reach the 

compromises necessary to achieve productivity increases and sustainable levels of 

employment. To this end, and through its jointly requested relationship building 

programs, the FMCS works with labor and management to establish collaborative, 

productivity-enhancing, problem-solving relationships.

For FY 2014, the FMCS expects to receive approximately 22,000 notices of 

expiring collective bargaining agreements and is already aware of more than 8,200

expiring contracts covering at least 24 percent of the private sector unionized workforce, 

or 1.75 million workers. Many of these expiring agreements are in key private sector 

industries, such as manufacturing, construction, health care, and retail trade.

Another factor in future workloads is related to the decline in average contract 

durations—from 36.6 months in 2008 to 33 months in 2009 and 2010—and the rebound 

to 35.5 in FY 2012. Shorter average contract durations mean negotiations will occur with 

greater frequency, increasing the number of notices that the FMCS must process each 

year, as well as mediator workloads.

For the reasons described earlier, the FMCS anticipates that labor strife will 

continue as the U.S. economy gradually recovers from the recession. The FMCS also 

anticipates that workers will seek to recoup at least some of the wage and benefit 

concessions many of them made during the depths of the recession. Consequently, the 

FMCS fully expects labor-management negotiations to remain contentious, therefore 

increasing the need for FMCS services and workload in FY 2014 and beyond.
3

A. Mediation Services

With its history of more than 65 years of providing mediation, training, and 

facilitation services, the FMCS has more aggregate experience in alternative dispute 

resolution than any other government agency. The FMCS recognizes that demonstrating 

the economic impact of preventing or minimizing the duration of work stoppages is 

difficult to quantify. For this reason, the FMCS uses an independently developed 

modeling system for estimating the impact of its services on the U.S. economy.2

Using this conservative model, the FMCS estimates that its mediation services in 

FY 2011 and FY 2012 saved the economy $1.9 billion in wages and profits that otherwise 

would have been lost to work stoppages. The calculations include direct wages saved 

among the bargaining unit members, retained company profits, and wages and profits 

among ancillary companies. This model also allows the FMCS to estimate the economic 

cost of work stoppages that occur each year. In FY 2012, these stoppages directly 

affected almost 101,500 workers and indirectly affected another 97,900 in ancillary 

businesses. The FMCS estimates that direct wage losses alone from a single large work 

stoppage would easily exceed FMCS's entire annual budget and cause otherwise 

avoidable losses to the fragile national economy.

Related research also has shown that the timing of FMCS involvement is 

absolutely critical to its ability to minimize the duration of work stoppages and to prevent 

work stoppages from occurring in the first place. Over the past 14 years, FMCS direct 

involvement in the bargaining process at any time prior to contract expiration is 

associated with a 40 percent reduction in the duration of any subsequent work stoppage: 

an average reduction of 27 days.

While the economic model helps demonstrate the direct benefits of mediation, it 

also understates the real value of FMCS services to the U.S. economy. The reason for 

this is that the FMCS economic model can only estimate the benefits of mediation to the 

company and employees taking part in any potential work stoppage, and to ancillary 

companies that provide goods and services directly to that company. The FMCS 

economic model cannot provide accurate cost estimates for companies and employees 

that rely upon the flow of goods or services halted by a work stoppage.

Nevertheless, with such strong evidence demonstrating the positive impact of 

early intervention in collective bargaining disputes, the FMCS uses a variety of early 

intervention programs and initiatives to pursue its mission of collaborative labormanagement conflict resolution. Of particular note is the FMCS's emphasis on

 

2 In FY 2005, the FMCS entered into an agreement with the Employment Policy Foundation (EPF), a 

nonprofit, nonpartisan public policy research foundation with expertise on workplace trends, to develop a 

model that was capable of estimating the impact of the FMCS’s services.
4

relationship building for the most complex and divisive issues and the most troubled 

sectors and industries in the U.S. economy.

Effectively Managing Health Care Bargaining Challenges

The costs of employer-provided health care are perennially among the most 

contentious issues in private and public sector negotiations. In 2014, several major 

provisions of the Affordable Care Act of 2010 (ACA) will increase the likelihood of 

contract disputes over cost sharing, cost containment, and compliance with changes to 

lifetime benefit limits, essential benefits, and guaranteed coverage. Recognizing this, the 

FMCS has continued emphasizing to labor and management that negotiations over health 

care-related issues are simply too complicated and contentious to wait until the usual 30-

60 days prior to contract expiration when parties typically begin to address contract 

modifications. This early engagement initiative, which the FMCS started in 2010 and has 

been endorsed by employers and unions, highlights the need for an ongoing joint problem 

solving approach to manage the complex problems confronting employer provided health 

care. It is based upon the concept that the extraordinarily difficult issues relating to 

health care benefits can only be addressed successfully if the parties have a relationship 

and a process for decision-making based on trust, transparency, and a commitment to 

joint problem solving that commences well in advance of contract expiration.

After 10 months of bargaining, including 22 consecutive days of FMCS-led 

negotiations in the final phase, three national grocery chains operating in Southern 

California (Super Valu, operating as Albertsons; Safeway, operating as Vons; and 

Kroger, operating as Ralphs supermarkets) and 15 local unions from the United Food & 

Commercial Workers (UFCW) ratified a new contract without resorting to a strike or 

lockout. This September 2011 agreement directly affected 62,000 supermarket workers 

and perfectly illustrates the need for early intervention. Less than a decade ago these 

same employers and local unions, facing similar challenges, engaged in one of the 

longest strikes in recent U.S. history. Health care benefit funding, heavily impacted by 

health care plan design, was once again a critical issue in what one mediator involved 

called an “extra-ordinary mediation in terms of both duration and intensity.” The issues 

were complex, the divide large and the urge to engage in a work stoppage powerfully 

present. Equally important, the comprehensive and jointly negotiated solutions reached 

in this agreement paved the way for a subsequent agreement between independent 

Southern California groceries and an additional 28,000 members of the UFCW.

The health care industry itself is not immune to the pressures of rising health care 

costs. In May 2012, the Coalition of Kaiser Permanente Unions, which included the 

Service Employees International Union-United Healthcare Workers West, reached 

tentative agreement with Kaiser Permanente, one of the largest health care providers in 

the United State. The new agreement with Kaiser Permanente covered some 45,000 

employees at 32 facilities in California and included an innovative wellness program that 

will reward employees for meeting specific health care goals and cost savings. 

Underpinning the agreement with Kaiser Permanente is a labor-management 

partnership—a structure established with FMCS assistance in 1997—which collectively 

works to reduce health risks, including occupational injury and illness. This is a single 
5

significant example of how the FMCS model of utilizing labor-management partnerships 

as an effective joint problem-solving mechanism can build organizational effectiveness.

Pressure on Public and Federal Sector Unions

The FMCS also plays a role in helping to achieve constructive labor-management 

relations throughout the public sector and in federal government. While many public and 

all federal unionized workers cannot be locked out or go on strike, the damage from 

unresolved labor disputes can still be substantial. In this instance, updating job 

descriptions, work rules, and work processes will increase effective and more cost 

efficient delivery of services to the public. Federal agencies and employee 

representatives are engaging in multiple joint approaches to achieve measurable 

performance improvement using labor-management forums established with FMCS 

guidance. In an effort to maximize utilization of its resources and build sustainable 

problem-solving capacity among the parties, FMCS implemented a “Train the Trainer” 

program in FY 2012. This program enables the joint teams of management and 

employee representatives to model the skills necessary and provide training in joint 

problem-solving techniques within their respective organizations. Additionally, based 

upon a joint request of the parties, FMCS pilots online training in joint labor-management 

initiatives and carefully examines measurable outcomes to determine future applications. 

While the FMCS continues to pursue innovative joint cooperative initiatives, utilization 

of traditional FMCS mediation assistance remains a useful tool available to the parties. 

In 2012, the FMCS assisted the Transportation Security Administration (TSA) and the 

American Federation of Government Employees (AFGE) to achieve its first ever labor 

contract covering more than 45,000 employees. The Social Security Administration and 

its employees were also able to successfully negotiate a new collective bargaining 

agreement with FMCS mediation assistance.

The foregoing examples are a small representation of the industries and sectors in 

which the FMCS's proactive outreach and relationship building model is being utilized to 

help labor and management improve competitiveness and productivity and provide 

sustainable employment levels during difficult economic times. In all aspects of its work, 

the FMCS seeks to minimize the potential for and impact of work stoppages and to 

promote improved labor-management relationships and organizational effectiveness.

B. Operational Excellence

In recent years, the FMCS consistently has been recognized as one of the best 

places to work in the federal government. Despite these accolades, the FMCS continues 

to mine the results of employee surveys, such as OPM's employee viewpoint survey, to 

identify areas of improvement. Analysis of ongoing survey results and information has 

prompted recent initiatives related to improving employee performance evaluation 

systems and encouraging appropriate utilization of telework.

Equally important is the FMCS's commitment to using allocated resources as 

efficiently as possible in order to ensure customers and taxpayers receive the highest 

value for the services it provides. Starting in FY 2010, the FMCS implemented a number 
6

of initiatives to improve the efficiency of support staff and support functions, efforts 

which will continue into 2014. These include creating new and updated procedures and 

directives in all significant administrative areas and expanding the availability and use of 

information technology systems to reduce paperwork burdens on the public and FMCS 

employees.

Following a number of administration initiatives relating to the Freedom of 

Information Act (FOIA), the FMCS is also committed to improving transparency and 

voluntary disclosure of agency information. In FY 2012, the FMCS was recognized by 

the Department of Justice as one of nine Federal agencies to receive top marks in how it 

carried out its responsibilities under FOIA. The FMCS will continue these efforts into 

FY 2014 and expand upon its voluntary disclosures of information in machine readable 

formats.

For FY 2014, the FMCS will continue to collapse and virtualize its information 

technology infrastructure and expand remote assist capabilities and services to carry on

the progress towards meeting administration goals and initiatives relating to 

telecommuting, cloud computing, continuity of operations, and cyber security. In 

FY 2012, the FMCS leveraged its cloud-capable infrastructure by moving development 

platforms and many production applications to the central virtual platform. In FY 2013 

and 2014, the FMCS will continue this process as well as expanding its mobile device 

management systems to stay abreast of technology and cyber-best practices as they 

evolve. Integral with this system will be maintaining scheduled upgrades to technology 

hardware and software assets, and the planned completion of the agency-wide 

distribution of Personal Identity Verification (PIV) cards, as well as the ongoing process 

of keeping the FMCS disaster recovery and devolution sites up to date.

In addition to these initiatives, the FMCS continues to employ a well-developed 

system for evaluating the distribution and effectiveness of its field office staff and offices. 

This evaluation occurs on an annual basis and as retirements and attrition present 

opportunities for non-disruptive realignment of its personnel. With the majority of its 

employees involved in direct program delivery—186 employees (77 percent of its 

workforce) distributed across 67 field stations—the FMCS makes sure to place 

employees in areas where they can provide the greatest benefit. In FY 2012, for the 

eighth consecutive year, the FMCS used a workload evaluation model to measure the 

caseloads of its field offices. This model compares the work of each of its field stations 

against FMCS national caseload averages. Caseloads are evaluated over a rolling period 

of four fiscal years to determine trends in specific field stations. The results help ensure 

that decisions to fill vacant mediator positions reflect the current and potential demand 

for the FMCS's services.

C. Conclusion

The FMCS mission statement reflects the agency’s statutory foundation: "to 

promote the development of sound and stable labor-management relationships and to 

prevent or minimize work stoppages by assisting labor and management in settling their 

disputes through mediation." As the scope and complexity of collective bargaining issues 
7

facing labor and management grow, the FMCS will continue to play a critical role in 

averting labor strife that can damage the competitiveness and productivity of U.S. 

companies, the welfare of their employees, and the nation's economic well-being.

Given the anticipated size and number of collective bargaining mediations in 

FY 2014, the complexity of the issues the parties face, and the increased demand and 

expectations of the labor-management community for FMCS services that make 

collective bargaining more effective, we urge you to favorably consider this respectful 

request for $47,620,000.
8

II. FMCS Organizational Chart

Director

(PAS)

Deputy Director for

Field Programs

(SES)

Alternative Dispute 

Resolution & 

International Programs 

Public Affairs EEO General

Counsel

Director of 

Field Operations

(Vacant)

Chief Financial Officer

(SES)

Budget & Finance 

Directors of Mediation Services

District 1 (Woodbridge, NJ)

District 2 (Philadelphia, PA)

District 3 (Pittsburgh, PA)

District 4 (Cleveland, OH)

District 5 (Orlando, FL)

District 6 (St. Louis, MO)

District 7 (Seattle, WA)

District 8 (Los Angeles, CA)

District 9 (Chicago, IL)

District 10 (Minneapolis, MN)

Human

Resources 

Administrative

Services

Education & Training,

FMCS Institute

Arbitration & Notice

Processing Services

Deputy Director for

National & International 

Programs

Information

Services

Office of

Ethics

As of Mar. 1, 2013
9

III. Appropriation Language

FEDERAL MEDIATION AND CONCILIATION SERVICE

SALARIES AND EXPENSES

For expenses necessary for the Federal Mediation and Conciliation Service 

(‘Service’) to carry out the functions vested in it by the Labor Management Relations Act, 

1947, including hire of passenger motor vehicles; for expenses necessary for the LaborManagement Cooperation Act of 1978; and for expenses necessary for the Service to 

carry out the functions vested in it by the Civil Service Reform Act, $47,620,000, 

including $400,000 to remain available through September 30, 2015, for activities 

authorized by the Labor-Management Cooperation Act of 1978: Provided, That 

notwithstanding 31 U.S.C. 3302, fees charged, up to full-cost recovery, for special 

training activities and other conflict resolution services and technical assistance, 

including those provided to foreign governments and international organizations, and for 

arbitration services shall be credited to and merged with this account, and shall remain 

available until expended: Provided further, That fees for arbitration services shall be 

available only for education, training, and professional development of the agency 

workforce: Provided further, That the Director of the Service is authorized to accept and 

use on behalf of the United States gifts of services and real, personal, or other property in 

the aid of any projects or functions within the Director’s jurisdiction.

Note—A full-year 2013 appropriation for this account was not enacted at the time the 

budget was prepared; therefore, this account is operating under a continuing resolution 

(P.L. 112—175). The amounts included for 2013 reflect the annualized level provided by 

the continuing resolution.
10

IV. Statutory and Other Legal Authority

FEDERAL MEDIATION AND CONCILIATION SERVICE

The Federal Mediation and Conciliation Service was established by Title II of the 

Labor-Management Relations Act (Taft-Hartley) in 1947 as an independent agency of the 

federal government whose primary mission is to prevent and minimize labormanagement disputes affecting interstate commerce by providing mediation, conciliation, 

and voluntary arbitration services. All mediation and conciliation functions of the 

Secretary of Labor and the United States Conciliation Service were transferred to FMCS 

at that time. This mission includes both the private and public sectors, except for the 

railroad and airline industries, which are covered by the Railway Labor Act administered 

by the National Mediation Board.

The Civil Service Reform Act of 1978 authorized FMCS to assist with dispute 

resolution in federal sector labor disputes. The Labor-Management Cooperation Act 

amended the Taft-Hartley Act in 1978 and directed FMCS to encourage labormanagement cooperative activities. It also authorized the issuance of grants to support 

joint labor-management activities conducted by plant, area, public sector, and industrywide committees.

In 1990, the FMCS was authorized by the Administrative Dispute Resolution Act 

and the Negotiated Rulemaking Act to assist other federal agencies in resolving disputes 

arising out of grants, contracts, licenses, or other agency administrative actions, and to 

assist in the process of negotiated rulemaking. The Administrative Dispute Resolution 

Act of 1996 amended and permanently reenacted these 1990 Acts.

Over the years, Congress and the Executive Branch have authorized FMCS to 

perform a variety of dispute resolution functions as well as to assist in the improvement 

of labor-management relationships. Specific statutory and other authorizations of FMCS 

programs are described below.

I. The Labor-Management Relations Act of 1947 (Public Law 80-101, as 

amended, 29 U.S.C. 158(d), 173 et. seq.) directs the FMCS to prevent or 

minimize interruptions to the free flow of commerce growing out of labor 

disputes by helping the parties settle such disputes through mediation. Parties 

are required to notify the FMCS 30 days prior to a contract termination or 

modification date so that mediation services may be proffered.
11

The Act establishes a special procedure for threatened or actual strikes which, 

in the opinion of the President, imperil the national health or safety. In such 

situations, the President may appoint a board of inquiry to ascertain the facts 

with respect to the dispute. After receipt of a report, the President may seek to 

enjoin the strike, and a court may do so if it finds that the threatened or actual 

strike or lockout affects a substantial part or all of an industry and would 

imperil the national health or safety. 29 U.S.C. 176-178.

II. The Health Care Amendments of 1974 (Public Law 93-360, 29 U.S.C. 158(d) 

(4), (4)(A), (4)(B)) (amending the National Labor Relations Act) include 

special provisions intended to prevent or minimize work stoppages in the 

health care industry. In the case of this industry, FMCS must be notified 60 

days before the contract termination date. A 30-day notice is required in initial 

bargaining situations. If, in the opinion of the Director, a strike is threatened 

which would interrupt the delivery of health care in a locality, the Director 

may appoint a board of inquiry. 29 U.S.C. 183. The board has 15 days within 

which to investigate and file its report and recommendations; parties must 

maintain the status quo for 15 days thereafter while further negotiations and 

mediation take place. The parties are required to cooperate in any mediation 

efforts by FMCS.

III. The Civil Service Reform Act of 1978 (Public Law 95-454, 5 U.S.C. 7119(a))

directs the FMCS to provide mediation assistance in disputes arising from 

negotiations between federal agencies and the representatives of their 

employees.

IV. The Postal Accountability and Enhancement Act of 2006 (Public Law 109-

435, as amended, 39 U.S.C. 1207) requires the FMCS to provide mediation 

services and assist in establishing arbitration boards in collective bargaining 

disputes between the Postal Service and the exclusive representatives of its 

employees.

V. An Act to Establish Dispute Resolution Procedures to Settle Disputes 

Between Supervisors and the United States Postal Service, 1980 (Public Law 

96-326, as amended, 39 U.S.C. 1004) directs FMCS, upon the request of 

either the Postal Service or an organization representing its supervisors, to 

convene fact finding panels to recommend supervisory pay and fringe benefit 

policies and to create panels to review the effectiveness of these procedures 

and other employment policies.
12

VI. Presidential Statement, March 24, 1953. The Atomic Energy LaborManagement Relations Panel was established within the FMCS in March 

1953, by President Eisenhower, in order to ensure the uninterrupted 

functioning of the atomic energy program without strikes or lockouts due to 

labor-management disputes. This Panel was moved to the Atomic Energy 

Commission in March 1956 but was returned to the FMCS under an interagency agreement with the Department of Energy in April 1980 and renamed 

the Energy Labor Management Relations Panel (ELMRP).

VII. Executive Order 11374, October 11, 1967, transferred the responsibilities of 

the Missile Sites Labor Commission (created by Executive Order 10946) to 

provide priority resolution of labor disputes at missile sites to the FMCS.

VIII. The Federal Insecticide, Fungicide and Rodenticide Act of 1978, (Public Law 

95-396, as amended, 7 U.S.C. 136a(c)(l)(F)(iii)) requires the FMCS to provide 

for the appointment of arbitrators to decide disputes concerning compensation 

for the use or development of pesticide registration data.

IX. The Labor Management Cooperation Act of 1978 (Public Law 101-552, as 

amended by Public Law 95-524, 29 U.S.C. 175a, 186(c)(9)) added Sections

205A and 302(c)(9) to the Labor-Management Relations Act and authorizes 

and directs the FMCS to encourage and support joint labor-management 

activities conducted by plant, area, and industry-wide committees designed to 

improve labor-management relationships, employment security and 

organizational effectiveness. The Act authorizes the Service to provide grant 

funds to assist in the establishment and operation of these labor-management 

committees.

X. The Administrative Dispute Resolution Act of 1996 (Public Law 104-320) 

(ADRA) authorizes and encourages agencies to use various alternative means 

of dispute resolution in the federal administrative process in order to avoid the 

time and expense of litigation. The ADRA amended, permanently enacted,

and incorporated into the Administrative Procedure Act, the Administrative 

Dispute Resolution Act provisions (5 U.S.C. 571 et. seq.) and the Negotiated 

Rulemaking Act provisions (5 U.S.C. 561, et. seq.) of 1990 legislation. These

provisions and their predecessors suggest that the ADR and regulatorynegotiation “experiments” have become well-accepted processes of federal 

agencies.

Under the ADRA, coverage has been expanded to include additional dispute 

resolution techniques, such as “ombudsmen,” and the use of ADR in some 

workplace conflicts, including Hatch Act violations, retirement, insurance, 

certain suspensions, removals, examinations, and appointments. The ADRA

encourages the development of guidelines to expedite the selection of neutrals 

and to facilitate the use of alternative dispute resolution in the federal 

government.
13

This legislation also amends the Labor-Management Relations Act of 1947 

(Taft-Hartley) by permanently adding Section 173(f) of Title 29 of the United 

States Code (29 U.S.C. 173(f)) so that the FMCS may provide all forms of 

ADR assistance to federal agencies. Under this legislation, the FMCS 

continues to assist agencies in negotiated rulemaking processes as well as 

other ADR procedures by providing training, facilitation, mediation, and other 

neutral skills.

XI. The U.S. Code of Federal Regulations at 45 CFR 90.43(c)(3), issued by the 

Department of Health and Human Services, implementing its authority under 

the Age Discrimination Act of 1975, 42 U.S.C. 6101 et seq., authorizes the 

FMCS to provide mediation assistance for the resolution of age-discrimination 

charges.

XII. The Federal Aviation Reauthorization Act of 1996 (Public Law 104-264, as 

amended, by Public Law 106-181, 49 U.S.C. 40122(a)) directs the FMCS to 

mediate disputes between the Administrator of the Federal Aviation 

Administration and its employee representatives concerning changes to the 

FAA’s personnel management system.

XIII. The Veterans Health Care Capital Asset and Business Improvement Act of 

2003 (Public Law 108-170, 38 U.S.C. 7403 (h)(4)(C)) gives the Secretary of 

Veterans Affairs or the exclusive representative of the affected employees the 

option of using the services of the Federal Mediation and Conciliation Service 

to assist the parties in reaching an agreement regarding disputes with respect 

to any system of promotion and advancement proposed by the Secretary.

XIV. Executive Order 13522 (Creating Labor-Management Forums To Improve 

Delivery of Government Services), December 9, 2009, continued by 

Executive Order 13591, November 23, 2011, permits the FMCS to furnish 

assistance to the National Council on Federal Labor-Management Relations, 

including training for executive departments and agencies in establishing 

labor-management forums and pilot projects to identify problems and 

negotiate solutions without regard to whether the matters are subject to 

bargaining (permissive subjects) under the Federal Service Labor-Relations

Statute.

XV. The Transportation Security Administration Determination, “Transportation 

Security Officers and Collective Bargaining,” February 4, 2011, requires the 

facilitation of collective bargaining negotiations by the Federal Mediation and 

Conciliation Service, or other agreed-upon entity, and requires TSA and the 

unions subject to bargaining to attend training in interest-based negotiations 

which will be conducted by the FMCS.
14

V. Budget Tables and Detailed Financial Requirements

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2012 FY 2013 FY 2014

Total Program

Increase or (Decrease)

Actual CR* Request 2012 to 2014

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

1. Collective Bargaining and 

Grievance Mediations 

(Dispute), Relationship 

Development Training 

(Preventive), and Outreach 

(Public Information) Workloads 180 $36,568 180 $36,851 184 $37,483 4 $915

2. Arbitration Services....................... 8 700 8 700 8 709 0 9

3. National Office Support and 

Administrative Services............... 43 8,895 43 8, 895 46 9,028 3 133

4. Labor-Management Grants............ 0 0 0 0 0 400 0 400

Sub-Total Appropriated 231 $46,163 231 $46,446 238 $47,620 7 $1,457

* Annualized CR (P.L. 112-175)
15

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2012 FY 2013 FY 2014

Total Program

Increase or (Decrease)

Actual CR* Request 2012 to 2014

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

5. Reimbursable programs: 

Employment Mediation, 

International Training, and 

Institute Courses.......................... 8 $1,235 8 $1,715 8 $1,715 0 $480

6. FMCS Internal Training and 

Education..................................... 0 596 0 750 0 750 0 154

Sub-Total Reimbursable 8 $1,831 8 $2,465 8 $2,465 0 $634

TOTAL RESOURCES 239 $47,994 239 $48,911 246 $50,085 7 $2,091
16

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET ESTIMATES FISCAL YEAR 2014

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual CR* Request

Personnel Compensation $26,824 $26,383 $27,598 28,165

Full-time permanent 26,396 26,008 27,222 27,787

- Full-time permanent positions 26,396 26,008 27,222 27,787

Other than full-time permanent 91 65 66 68

- Other than full-time permanent positions 91 65 66 68

Other Personnel Compensation 337 310 310 310

- Overtime & holiday pay 26 45 45 45

- Cash incentive awards 311 265 265 265

Personnel Benefits $7,893 $7,876 $8,032 $8,139

Civilian Personnel Benefits 7,893 7,876 8,032 8,139

- CSRS Retirement Contribution 222 185 180 170

- FERS Retirement Contribution 2,687 2,755 2,800 2,830

- Federal Retirement Thrift Savings Plan Contribution 1,100 1,100 1,183 1,199

- Group life insurance 49 49 49 49

- Health Insurance Contribution 1,614 1,662 1,712 1,785

- OASDI – FERS 1,293 1,300 1,350 1,388

- Employee compensation 399 401 337 302

- Relocation expenses (PCS) 0 0 0 0

* Annualized CR (P.L. 112-175)
17

BUDGET ESTIMATES FISCAL YEAR 2014

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual CR* Request

Personnel Benefits (continued)

Civilian Personnel Benefits (continued)

- Cost-of-living allowance 40 19 19 19

- Subsidy for commuting costs 116 52 52 52

- Medicare contribution 373 353 350 345

Benefits of Former Personnel $5 $0 $0 $0

- Unemployment compensation 5 0 0 0

- Voluntary separation incentive 0 0 0 0

Travel and Transportation of Persons $1,782 $1,801 $1,791 $1,791

- National office travel 121 140 130 130

- Official car 11 11 11 11

- Field office travel 1,650 1,650 1,650 1,650

Transportation of Things $0 $0 $0 $0

- Transportation of household goods (PCS) 0 0 0 0

Rents, Communications, and Utilities 6,409 6,208 6,524 6,624

Rental Payments to GSA 5,400 5,250 5,566 5,666

- Rental payments to GSA 5,400 5,250 5,566 5,666
18

BUDGET ESTIMATES FISCAL YEAR 2014

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual CR* Request

Rents, Communications, and Utilities (continued)

Rental Payments to Others 4 4 4 4

- Conference room rental 4 4 4 4

Communications, Utilities and Miscellaneous Charges 1,005 954 954 954

- Reproduction equipment rental 0 0 0 0

- Miscellaneous charges 7 5 5 5

- Audio-visual equipment rental 3 3 3 3

- GSA Phones 232 233 233 233

- FTS Phones 20 37 37 37

- Commercial Phones 282 254 254 254

- Data communication services 315 315 315 315

- Postal services and rentals 146 107 107 107

Printing and Reproduction $30 $35 $30 $30

- FMCS forms and other printing 30 35 30 30

Other Contractual Services $2,015 $2,738 $1,704 $1,704

Advisory and Assistance Service 31 51 41 41

- Computer assisted legal research 5 15 15 15

- OPM background investigations 16 16 16 16

- Office equipment and machinery relocation 10 20 10 10
19

BUDGET ESTIMATES FISCAL YEAR 2014

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual CR* Request

Other Contractual Services (continued)

Other Services 305 605 327 327

- Management and professional services 300 600 322 322

- Official representation fund 5 5 5 5

Other purchases of goods and services

from Government Accounts 190 314 379 379

- Guard security and Federal Protective Services 190 314 379 379

Operation and Maintenance of Facilities 27 87 26 26

- Office repairs and alterations 27 87 26 26

Medical Care 21 21 21 21

- Medical care 21 21 21 21

Operation and Maintenance of Equipment 1,441 1,660 910 910

- Maintenance of office equipment 71 75 61 61

- Maintenance of information technology equipment 620 679 360 360

- Information technology support services 700 856 439 439

- Support of payroll/personnel operations 50 50 50 50

- Household goods storage (PCS) 0 0 0 0
20

BUDGET ESTIMATES FISCAL YEAR 2014

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual CR* Request

Supplies and Materials $258 $257 $257 $257

- Office supplies and materials 188 187 187 187

- Information technology supplies and materials 70 70 70 70

Equipment $593 $865 $510 $510

- Furniture and fixtures 80 116 80 80

- Information technology hardware/software 358 595 390 390

- Audio-visual equipment 155 154 40 40

Grants, Subsidies and Contributions $750 $0 $0 $400

Sub-total appropriated $46,559 $46,163 $46,446 $47,620
21

BUDGET ESTIMATES FISCAL YEAR 2014

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual CR* Request

Reimbursable Programs (non-appropriated) $1,298 $1,235 $1,715 $1,715

- Compensation 717 703 860 860

- Benefits 188 180 242 242

- Travel 278 255 250 250

- Communications 5 1 3 3

- Other contractual services 102 86 350 350

- Supplies and materials 8 10 10 10

Sub-total of Reimbursable Programs $1,298 $1,235 $1,715 $1,715

FMCS Internal Training and Education (nonappropriated) $706 $596 $750 $750

- Seminars, workshops, conferences and training 323 255 325 325

- New mediator costs 107 124 145 145

- Tuition 121 127 127 127

- Other contractual services 41 12 50 50

- Supplies & materials 12 8 20 20

- Subscriptions 102 70 83 83

Sub-total of FMCS Training and Education $706 $596 $750 $750

Sub-total of non-appropriated (reimbursable obligations) $2,004 $1,831 $2,465 $2,465

TOTAL RESOURCES $48,563 $47,994 $48,911 $50,085
22

FEDERAL MEDIATION AND CONCILIATION SERVICE

Detail of Total Employment – End of Year

2012 2013 2014

Actual Estimated Requested

Executive Level III.......................................... 1 1 1

ES.................................................................... 2 2 4

Subtotal............................................ 3 3 5

GS-15 .............................................................. 21 21 21

GS-14 .............................................................. 146 154 155

GS-13 .............................................................. 27 21 25

GS-12 .............................................................. 8 5 5

GS-11 .............................................................. 1 2 2

GS-10 .............................................................. 1 1 2

GS-9 ................................................................ 6 4 4

GS-8 ................................................................ 14 14 13

GS-7 ................................................................ 7 6 6

GS-6 ................................................................ 7 7 7

GS-5 ................................................................ 1 1 1

GS-4 ................................................................ 0 0 0

GS-3 ................................................................ 1 0 0

GS-2 ................................................................ 0 0 0

Subtotal ............................................ 240 236 241

Total employment, end of year..................... 243 * 239 * 246 *

Full-time equivalent (FTE) usage................. 239 * 239 * 246 *

---------------------------------------------------------------------------------------------------------------------------

Average ES Salary .......................................... $163,900 $163,700 $167,500

Average GS Level ........................................... 12.90 12.92 12.85

Average GS Salary .......................................... $110,450 $111,300 $113,000

---------------------------------------------------------------------------------------------------------------------------

* 8 FTE funded by reimbursable revenue.
23

VI. Mission and Program Structure

Congress established the Federal Mediation and Conciliation Service (FMCS) in 

1947 through the Labor Management Relations Act (Taft-Hartley) amendments to the 

National Labor Relations Act (NLRA) as an independent agency whose mission is “to 

assist parties to labor disputes in industries affecting commerce to settle such disputes 

through conciliation and mediation.” Subsequent acts of Congress and presidential 

orders have expanded the FMCS role to provide mediation services to the federal sector 

and alternative dispute resolution (ADR) programs to federal government agencies, as 

well as promote and establish labor-management partnerships.

The FMCS commits to:

• Promoting the development of sound and stable labor-management relationships;

• Preventing or minimizing work stoppages by assisting labor and management to 

settle their disputes through mediation;

• Advocating collective bargaining, mediation, and voluntary arbitration as the 

preferred process for settling disputes between employer and representatives of 

employees;

• Developing the art, science, and practice of conflict resolution; and,

• Fostering the establishment and maintenance of constructive joint processes to 

improve labor-management relationships, employment security, and 

organizational effectiveness.

For more than 65 years, the FMCS has provided services that embrace this 

mission and demonstrate its commitment to preventing or minimizing interruptions of the 

free flow of commerce growing out of labor disputes. As labor-management 

relationships have evolved over time, so, too, has the nature of the FMCS work within 

collective bargaining relationships. The FMCS today provides a range of services to 

labor and management, such as relationship-development training and training in interestbased bargaining, to help the parties deal effectively with disputes that may arise between 

them without resorting to work stoppages. The following section describes the FMCS 

comprehensive package of core programs and services.
24

A. Collective Bargaining Mediation

Through collective bargaining mediation, the FMCS helps avert or minimize the 

cost of work stoppages to the U.S. economy. The FMCS’s core work is to mediate

collective bargaining negotiations for initial contracts—which take place between an 

employer and a newly certified or recognized union representing its employees—and for 

negotiations for successor collective bargaining agreements. The FMCS provides 

mediation services to the private sector and also to the public sector, including federal 

agencies and state and local governments.

In FY 2012, FMCS mediators actively monitored over 13,100 collective 

bargaining negotiations and were directly involved “at the table” in more than 4,500. The 

negotiations in which FMCS mediators were directly involved impacted every major 

industry throughout the United States.

B. Grievance Mediation

Grievance mediation involves the use of a neutral party to mediate disputes that 

may arise over the terms and conditions of a collective bargaining agreement. FMCS 

mediators provide this service to the private and public sectors with the productive goal 

of preventing unresolved contract interpretation issues from spilling over and bogging 

down future contract negotiations. The volatile economic climate, highly competitive 

business environment, and the rapidity with which employers and unions must respond to 

changing conditions all increase the importance of resolving contentious issues arising 

mid-contract. Additionally these unresolved matters, if left to fester, invariably create a 

climate of conflict in the collective bargaining relationship and increase the potential for 

work stoppages during bargaining over contract renewal.

In FY 2012, the FMCS mediated nearly 1,800 grievance mediation cases and 

helped the parties reach agreement in 1,367 of these (77 percent). Apart from that direct 

benefit to the parties, experience has shown that once parties utilize this type of 

mediation assistance, they are more likely to call upon FMCS mediation services during 

their negotiations at contract renewal time.

C. Relationship-Development and Training

Preventing conflict that may arise during the term of a collective bargaining 

agreement is another important goal of the FMCS. The FMCS’s relationship-building 

training programs are designed to serve a preventive purpose and to improve labormanagement relationships by helping labor and management develop collaborative, 

problem-solving approaches. Effective use of these programs better enables the parties to 

jointly respond to rapidly changing business and economic conditions. These training 

programs not only improve the quality of the parties’ relationships, but are designed to 

provide processes and structures conducive to joint discussion and resolution of issues.

Adoption of these processes helps ensure successful and highly productive workplaces. 

In FY 2012, FMCS mediators conducted more than 2,100 training programs with the 

parties of collective bargaining.
25

FMCS relationship-development and training programs include:

• Alternative Bargaining Training: Teaches the benefits and techniques of a 

non-adversarial, joint problem-solving approach to negotiation.

• Relationship by Objective: Improves the parties’ relationship with one 

another, particularly where the relationship has worsened after a contentious 

representation election, initial contract negotiation, or strike.

• Committee Effectiveness Training: Assists the parties in developing joint 

labor-management committees designed to bring the parties into regular 

communication.

• Partners in Change: Explores the organization’s current culture, identifies 

perceptions within the organization, creates a vision for the future, and designs 

systems that effectuate change.

• Labor-Management Work-Site Committee Training: Helps labormanagement committees extend to the work-site level, forming work-site 

committees, group interactions, and learning techniques to manage change.

• Contract Administration/Steward-Supervisor Training: Trains front-line 

supervisors and shop stewards on their roles and responsibilities in contract 

administration, grievance processing, the arbitration procedure, and 

interpersonal communications for building cooperative relationships.

• Cultural Awareness Skills for Labor and Management: Trains the parties to 

function in a multicultural work setting including the resolution of cross-cultural 

conflicts in a workplace.

• Collective Bargaining and Mediation Training: Trains the parties on 

effective negotiation and communication skills.

D. Arbitration Services

National labor policy favors arbitration for settling contractual disputes. FMCS’s

Office of Arbitration Services maintains a roster of approximately 1,400 independent

arbitrators who are qualified to hear and decide disputes over the interpretation or 

application of collective bargaining agreements. Upon request from the parties, the 

FMCS furnishes a list of names from which they may choose an arbitrator to hear their 

case and render a decision.

During FY 2012, the Office of Arbitration Services processed almost

13,600 requests for arbitration panels nationwide. Arbitrators on the FMCS roster heard 

and decided nearly 2,000 labor arbitration cases.

E. Employment and Regulatory Mediation

Outside the collective bargaining arena, the FMCS provides employment 

mediation services to the federal sector and to state and local governments on a costreimbursable basis. The Administrative Dispute Resolution Act of 1990, the Negotiated 

Rulemaking Act of 1990, and the Administrative Dispute Resolution Act of 1996 

expanded FMCS’s role as a provider of these services. The legislative intent behind 
26

these acts was to increase the use of alternative dispute resolution throughout the federal 

government, reduce litigation costs, and promote better government decision-making. A 

recent development has been greater emphasis on the utilization of regulatory 

negotiations to enhance the effectiveness and efficiency of promulgating new agency 

rules. This requires experienced mediators and facilitators, who are specially trained and

skilled at managing complex multi-party negotiations involving multiple stakeholders. 

The FMCS’s workforce is uniquely positioned to meet the specific demands of the 

regulatory negotiations environment, and indeed, requests for such services have 

increased.

The FMCS also provides employment mediation to the private sector to resolve 

workplace disputes falling outside of the traditional collective bargaining context, i.e., 

equal employment opportunity disputes. In FY 2012, FMCS mediated more than 1,100

employment cases.

F. FMCS Institute

The FMCS Institute for Conflict Management provides training and education to 

labor and management practitioners from multiple organizations in an off-site classroom 

format. The Institute offers training in practical conflict resolution skills, collective 

bargaining, arbitrator and arbitration skills-building, facilitation process skills, multiparty facilitation, cultural diversity, and equal employment opportunity mediation skills. 

The Institute runs as a reimbursable program and is funded by fees received from training 

participants.

G. Labor-Management Committee Grants

The 1978 Labor-Management Cooperation Act authorizes and directs the FMCS 

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." Congress funds this initiative in the FMCS’s annual 

appropriations, and grants are distributed to encourage labor-management committees to 

develop innovative joint approaches to workplace problems. There were no funds 

appropriated for grants in FY 2012 or FY 2013.

H. International Training and Exchange

Beyond the nation’s borders, the FMCS plays an important role in promoting 

collective bargaining and conflict resolution around the world. FMCS’s international 

work is a small, essential part of its services. Emerging market economies often struggle 

to compete effectively in a globally integrated marketplace. Part of their struggle 

includes the implementation of effective labor relations systems. Other nations and 

foreign organizations have sought assistance in designing systems that resolve and 

prevent industrial conflict where a formal system has not been developed to manage it. 

International training programs are also a knowledge-sharing experience; FMCS 
27

mediators gain familiarity with complex issues affecting the global economy and, as a 

result, are more effective in resolving labor-management disputes with international 

implications.

FMCS’s international efforts also levels the economic playing field for U.S. 

companies and workers by strengthening the rule of law and workers' rights in 

developing countries. The program helps create the stable and productive work forces 

that are needed to attract foreign investment and improve living conditions as well as

supporting U.S. companies and workers in the global market by advocating core labor 

standards for all nations. Equally important, the FMCS helps establish the labor relations 

institutions that are essential to the smooth functioning of free market economies. In 

addition to industrial relations, FMCS mediators assist with rule of law initiatives, 

thereby fostering economic growth and investment. These initiatives include mediation 

training and working with NGOs and other civil society organizations to develop 

mediation and other FMCS ADR programs. FMCS’s International Program operations 

are non-appropriated services. They are funded in part by a number of foreign and U.S. 

agencies, including the U.S. Department of Labor, the U.S. Department of State, the U.S. 

Agency for International Development, and the International Labor Organization.
28

VII. Workload Projections – FY 2013 and FY 2014

The FMCS’s workload over prior fiscal years, caseload estimates, 

accomplishments for FY 2012, and estimated workload in FY 2013 and 2014 are 

included in the following pages. These estimates should be read in conjunction with the 

FMCS’s Annual Performance Plan detailed in Section VIII.
29

WORKLOAD OUTPUTS AND PROJECTIONS

FISCAL YEARS 2008 - 2014 

PROGRAM SERVICES

FY 2008

Actual

FY 2009

Actual

FY 2010

Actual

FY 2011

Actual

FY 2012

Estimated

FY 2012

Actual

FY 2013

Estimated

FY 2014

Estimated

1. COLLECTIVE BARGAINING 

MEDIATION.............................................

Assigned Casesi 14,308 13,887 14,127 13,712 14,000 13,114 13,700 13,700

-Private Sector 12,914 12,425 12,888 12,460 12,843 11,814 12,392 12,392

-Public Sector (state and municipal) 1,083 1,138 906 943 852 943 1,007 1,007

-Federal Sector 311 324 333 309 305 357 300 300

Mediated Casesii 4,836 4,767 4,919 4,665 4,811 4,528 4,801 4,801

-Private Sector 3,437 3,320 3,632 3,271 3,470 3,079 3,437 3,437

-Public Sector (state and municipal) 1,145 1,155 991 1,091 1,078 1,111 1,088 1,088

-Federal Sector 254 292 296 303 263 338 276 276

Closed Cases 13,480 13,308 12,992 13,776 13,209 13,652 13,046 13,046

Closed Mediated Cases 3,914 3,958 4,005 3,815 3,917 3,764 3,912 3,912

Activity Rateiii 29% 30% 31% 28% 30% 28% 30% 30%

Settled and Closed Mediated Cases 3,396 3,395 3,428 3,234 3,379 3,159 3,458 3,458

Percentage of mediated cases settled w/FMCSiv 87% 86% 86% 85% 86% 84% 88% 88%

Activity rate in significant casesv 38% 37% 46% 33% 40% 46% 45% 45%

2. GRIEVANCE MEDIATION .........................

Assigned Cases 1,749 2,027 2,124 1,968 1,900 1,837 1,900 1,900

Mediated Cases 1,728 2,004 2,084 1,905 1,867 1,784 1,863 1,863

-Private Sector 1,296 1,570 1,708 1,513 1,455 1,372 1,463 1,463

-Public Sector (state and municipal) 314 313 239 261 304 264 298 298

-Federal Sector 118 121 137 131 141 148 139 139

Settled GM Cases 1,299 1,479 1,532 1,428 1,405 1,367 1,408 1,408

Percentage of cases settled w/ FMCSvi 75% 74% 74% 75% 75% 77% 76% 76%
30

PROGRAM SERVICES

FY 2008

Actual

FY 2009

Actual

FY 2010

Actual

FY 2011

Actual

FY 2012

Estimated

FY 2012

Actual

FY 2013

Estimated

FY 2014

Estimated

3. RELATIONSHIP-DEVELOPMENT AND 

TRAINING ................................................

Number of training programs provided 2,356 2,327 2,200 2,301 2,400 2,128 2,300 2,300

-Private Sector 1,390 1,400 1,471 1,267 1,372 1,262 1,406 1,406

-Public Sector (state and municipal) 712 682 433 493 447 463 634 634

-Federal Sector 254 245 296 541 581 403 259 259

4. EMPLOYMENT MEDIATION....................

Mediated Cases 1,220 1,362 1,392 1,330 1,320 1,110 1,300 1,300

-Federal Sector 1,205 1,336 1,387 1,323 1,295 1,090 1,263 1,263

-Public Sector (state and municipal) 11 9 2 3 8 5 13 13

-Private 4 17 3 4 17 15 24 24

Settled EM Cases 576 638 675 641 642 537 632 632

Percent of EM cases settled w/ FMCSvii 47% 47% 48% 48% 49% 48% 49% 49%

5. OUTREACH ...................................................

Outreach casesviii 3,347 3,622 3,240 3,190 3,300 3,019 3,200 3,200

6. ARBITRATION SERVICES.........................

Number of panels issued 15,865 16,692 16,486 13,500 14,500 13,538 14,000 14,000

Number of arbitrators appointed 6,568 6,496 6,870 5,575 5,895 6,129 5,782 5,782

Average number of days for arbitrator 

appointment 3 3 2 2 2 2 2 2 

7. INSTITUTE.....................................................

Number of courses provided 5 7 12 5 10 8 13 13

Number of participants 150 187 207 93 220 179 225 225
31

VIII. Annual Performance Plan

Performance expectations for each service area are guided by the FMCS’s current 

five-year strategic plan. For each strategic goal, the FMCS has identified a number of 

objectives, key implementation strategies and actions, and measures for tracking its 

performance toward achieving each goal. The following section details each goal and 

presents a matrix identifying the programs impacted by them, performance objectives and 

accomplishments for FY 2012, and performance goals for FY 2013 and FY 2014.
32

Strategic Goal #1: Mediation

Minimize the number and duration of work stoppages that may occur during collective 

bargaining negotiations.

Objective:

• Use of FMCS collective bargaining mediation by labor and management leaders.

Action:

• Early intervention activities, particularly in initial contracts, the health care 

industry, and large and high-impact bargaining units.

Strategies:

• Encourage labor and management leaders to employ mediation in their contract 

negotiations.

• Pursue FMCS joint problem-solving initiatives during the term of the agreement.

Expected Outputs:

• Increased mediator case activity rates.

• Increased proportion of cases with meetings held prior to contract expiration date.

Discussion:

Collective bargaining mediation represents the core of the FMCS’s mission and 

its most publicly visible work. In 2005, an independent study conducted for the FMCS 

found that mediation prior to a contract’s expiration date significantly reduces the 

duration of any work stoppage that occurs. Previously, three separate studies of matched 

bargaining pairs found that FMCS mediation was also an important factor in preventing 

work stoppages from occurring in the first place.

As a result of these studies, the FMCS believes that early and ongoing contact 

with the parties to a labor contract negotiation is imperative in reducing the number and 

duration of work stoppages. This is particularly true in collective bargaining cases that 

involve: an initial contract; national security; the health care industry; large bargaining 

units; or those cases that have the potential for permanent shutdowns or disruptions to the 

community, work force, or interstate commerce.

The FMCS evaluates its success in these areas by looking at how many 

negotiations use mediation services, whether or not a work stoppage occurred, the 

duration of any stoppage, and the timing of mediators’ involvement. On an aggregate 

basis, the FMCS also estimates the financial cost of work stoppages that actually occur 

and the value of work stoppages that its mediators are able to prevent or shorten.
33

Mediation Outputs and Performance Measures

Minimize the number and duration of work stoppages that may occur during 

collective bargaining negotiations.

Rates of mediator case activity

Assigned Cases Closed in FY with meetings / Assigned Cases Closed in FY

Actual ....... 29.1 29.7 30.8 27.7 27.6 30.0 30.0

Target ....... 30.0 30.0 30.0 30.0 30.0 30.0 30.0

* Estimated

Proportion of mediation cases with meetings held prior to contract expiration date

Cases Closed in FY with Meeting Held Prior to Contract Expiration / Cases Closed in FY with Meeting

Actual ....... 46.3 47.9 43.9 39.0 35.9 45.0 45.0

Target ....... 50.0 50.0 50.0 50.0 50.0 50.0 50.0

* Estimated

20

25

30

35

40

2008 2009 2010 2011 2012 2013* 2014*

Actual Trend

20

30

40

50

60

2008 2009 2010 2011 2012 2013* 2014*

Actual Trend
34

Strategic Goal #2: Building Problem-Solving Relationships

Improve labor-management relationships.

Objective:

• Use collaborative dispute resolution processes to manage workplace conflict.

Actions:

• Provide techniques and information that help parties improve their collective 

bargaining relationship, with particular emphasis on implementing changes to 

health care benefits.

• Deliver internally sustainable dispute resolution systems.

• Educate labor and management leaders at home and abroad in the art of building 

and maintaining labor-management partnerships.

Strategy:

• Promote the use of FMCS programs and outreach emphasizing joint initiatives on 

significant issues likely to impact collective bargaining.

Expected Output:

• Increased customer satisfaction with FMCS educational products and services.

Discussion:

Relationship development and training, grants, and a number of related activities 

are designed to help the parties to a collective bargaining agreement better understand the 

issues and external forces affecting their collective bargaining relationship and to develop 

internal task forces or groups to help them improve their relationship. In an increasingly 

global economy, outreach to sister agencies in other countries is a small, but important 

aspect of the FMCS’s work in this area.

The continued success of American employers and employees in a globally 

competitive arena requires a degree of cooperation between labor and management that 

traditional confrontational bargaining relationships cannot easily accommodate. This is 

particularly true with respect to new circumstances confronting both parties in the 

collective bargaining relationship, such as the challenges associated with the 

implementation of the Affordable Care Act. These competitive issues can be both 

complex and subtle and require creative solutions that address unique challenges.

The FMCS is committed to delivering to its customers the best possible 

information, analysis, practices, and solutions. Through its individual program

evaluations, the FMCS is constantly seeking to improve its core curriculum.
35

Strategic Goal #3: Resolving Mid-Term Disputes

Resolve contract-based disputes (grievances) that arise during the term of collective 

bargaining agreements.

Objectives:

• Assist parties to voluntarily resolve contract-based disputes.

• Provide high-value arbitrator referral service for situations when parties cannot 

voluntarily resolve a contract-based dispute.

Actions:

• Increased utilization of FMCS services to resolve contract-based disputes.

• Maintain roster of experienced arbitrators.

• Improve all aspects of the arbitration referral service.

Strategies:

• Advocate mediation and arbitration as the preferred methods for settling disputes 

between parties in a collective bargaining relationship.

• Facilitate joint, collaborative problem-solving events on an ongoing basis.

Expected Outputs:

• Increase the proportion of settled grievance mediation cases.

• Increase customer satisfaction with quality of arbitration service.

Discussion:

Grievance mediation, joint problem-solving facilitation, and arbitration are three 

approaches for resolving disputes that may arise from differing interpretations of a labor 

contract’s terms and conditions. Grievance mediation and joint problem solving 

facilitation are voluntary processes that rely upon consensus building. Arbitration is a 

structured process that provides a final and binding determination. All three approaches 

are designed to reduce the need for expensive and time-consuming court litigation, and 

resolve disputes before they negatively affect the collective bargaining relationship.

Increasing the FMCS’s presence among groups that have not traditionally used its 

services is one way to build healthier collective bargaining relationships. FMCS’s 

involvement in these interventions encourages the parties to engage in other collective 

bargaining activities with less disruption and animosity.

Improved settlement rates in contract-based disputes and joint problem-solving 

cases provide a good indication of how well FMCS mediators are able to facilitate 

agreements. Likewise, favorable customer evaluations of the arbitrator referral service 

help the FMCS improve the quality of the service.
36

Resolving Mid-Term Disputes Outputs and Performance Measures

Resolve contract-based disputes (grievances) that arise during the term of 

collective bargaining agreements.

Proportion of active grievance mediation cases with settlement reached

Agreement Reached in FY / Cases Closed in FY

Actual ....... 75.2 73.8 75.5 75.0 76.6 75.0 75.0

Target ....... 75.0 75.0 75.0 75.0 75.0 75.0 75.0

* Estimated

65

70

75

80

85

2008 2009 2010 2011 2012 2013* 2014*

Actual Trend
37

Strategic Goal #4: Promoting ADR

Resolve regulatory / enforcement policy disputes and statute-based workplace disputes.

Objectives:

• Use employment mediation as an alternative to litigation.

• Use problem-solving processes to resolve regulatory/ policy based disputes.

Action:

• Increase number of employment mediations conducted and reimbursable 

agreements signed.

• Increase the number of facilitated regulatory negotiations and public policy 

disputes conducted.

Strategy:

• Advocate alternative dispute resolution (ADR) as the preferred method for 

settling non-collective bargaining disputes.

Expected Output:

• Increase the number of mediated settlements in employment mediation cases.

• Increase the number of regulatory/policy disputes resolved through facilitated 

processes.

Discussion:

The FMCS’s alternative dispute resolution (ADR) work is defined by the 

Administrative Dispute Resolution Act of 1996 and is designed to help resolve disputes 

that do not result from a collective bargaining relationship. Under the Act, the FMCS is 

generally limited to work in the federal sector, but may include state or local entities if 

the dispute is related to a federal rule or regulation.

Using traditional dispute resolution vehicles, such as the courts or other statutory 

processes, may take several years and cost hundreds of thousands of dollars in legal fees

and court costs, and require significant resource expenditures from the affected parties. In 

addition, imposed outcomes from utilization of these processes are unpredictable and the 

conditions present when the dispute arose may have changed dramatically. In regulatory 

matters, voluntary resolution of a single issue by multiple parties through a facilitated 

consensus based process will normally offset any costs incurred. Broader resolution of

more issues increases the benefits on an exponential basis.

By increasing the number of individual employment cases and 

regulatory/enforcement cases that the FMCS takes and achieving an increased number of 

resolved cases, FMCS seeks to provide a cost-effective alternative to litigation and 

promote better government decision-making.
38

Promoting ADR Outputs and Performance Measures

Resolve statute- or regulation-based workplace disputes.

Proportion of active employment mediation cases with settlement reached

Agreement Reached in FY / Cases Closed in FY

Actual ....... 47.2 46.8 48.5 48.2 48.4 49.0 49.0

Target ....... 50.0 50.0 50.0 50.0 50.0 50.0 50.0

* Estimated

40

45

50

55

60

2008 2009 2010 2011 2012 2013* 2014*

Actual Trend
39

Endnotes

 

i

Section 8(d) of the National Labor Relations Act, as amended, 29 U.S.C. §158(d) requires that any 

employer or labor organization provide notice to the FMCS 30 days prior to contract expiration. Not 

all cases providing notices are assigned. Actual FY 2012 FMCS case intake exceeded 22,000. ii

 Mediated cases represent the number of cases in the FY where mediators have become active in the 

negotiations. iii Defined as the number of closed cases where there was at least one meeting divided by the number of 

total closed assignments.

iv Defined as the number of mediated cases settled divided by the total number of mediated cases. v

 Significant cases are generally defined as situations where the bargaining unit exceeds 1,000.

vi Defined as the number of grievance mediation cases settled and closed within the fiscal year divided by 

the number of closed GM assignments.

vii Defined as the number of mediated employment cases settled divided by the number of mediated cases 

closed.

viii FMCS requires all mediators to engage in outreach efforts. These kinds of activities include nonbargaining meetings with labor and management representatives, attendance at conferences, meetings 

with local and state officials to offer FMCS services, and presentations designed to increase public 

knowledge.