FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2015

Congressional Budget Submission

&

Annual Performance Plan
FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2015

Congressional Budget Submission & Annual Performance Plan

Table of Contents

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

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

B. Operational Excellence ..................................................................................... 7

C. Conclusion ........................................................................................................ 8

II. FMCS Organizational Chart ................................................................................... 9

III. Appropriation Language ....................................................................................... 10

IV. Statutory and Other Legal Authority .................................................................... 11

V. Budget Tables and Detailed Financial Requirements........................................... 15

VI. Mission and Program Structure ............................................................................ 24

A. Collective Bargaining Mediation.................................................................... 25

B. Grievance Mediation....................................................................................... 25

C. Relationship-Development and Training........................................................ 25

D. ADR Services.................................................................................................. 26

E. International Training and Exchange.............................................................. 26

F. Arbitration Services........................................................................................ 27

G. FMCS Institute for Conflict Management ...................................................... 27

H. Labor-Management Committee Grants .......................................................... 27

VII. Workload Projections – FY 2014 and FY 2015.................................................... 28

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

Fiscal Year 2015 Budget Estimates

I. Executive Summary

The Federal Mediation and Conciliation Service (FMCS) is an independent 

agency of the federal government established by Congress in 1947 to help employers and 

unions avoid costly work stoppages and minimize their potentially devastating effects on 

regional or national commerce. The FMCS, headquartered in Washington, D.C., has 

mediators located in over 60 field offices and ten regional offices across the country and 

is best known for its history of successful and innovative advances in labor-management 

collaboration, joint problem-solving and the resolution of major collective bargaining 

disputes. In 1996, Congress recognized this record for pioneering dispute resolution 

techniques and highly skilled professional mediators and called upon the FMCS to help 

other federal, state and local agencies minimize costly litigation by resolving disputes 

arising under their jurisdictions.

Thus, while the FMCS fulfills its statutory obligations by mediating collective 

bargaining disputes and by assisting employers and unions in developing collaborative 

problem-solving relationships, it also provides federal agencies with a wide variety of 

alternative dispute resolution services. 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.

Despite improved economic conditions anticipated in FY 2015, an atmosphere of 

uncertainty clouds collective bargaining negotiations nationwide. Unemployment still 

hovers at relatively high levels, with many private employers delaying their hiring 

decisions and cutting costs while they wait for better signs of an upward trend. For 

employees, job security, pensions, and health care benefits will remain key issues at the 

bargaining table, in addition to the need to regain wages for workers that had been lost in 

recent hard times. Adding to this already complex picture, labor and management will 

continue to confront contractual and plan changes required by the Patient Protection and 

Affordable Care Act of 2010 (ACA).

In carrying out its core mission to assist the parties in resolving collective 

bargaining disputes, the FMCS will continue to provide its skilled, experienced mediators 

on a pro-active, outreach basis. 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-
2

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

collaborative, productivity-enhancing, problem-solving relationships.

For FY 2015, the FMCS expects to receive approximately 22,000 notices of 

expiring collective bargaining agreements and is already aware of nearly 8,000 expiring 

contracts covering at least 25 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 entertainment.

Contract duration is normally a reflection of how the parties perceive the stability 

of their relationship as well as their estimate of future economic growth. The FMCS has 

found that contract durations drop, sometimes dramatically, during periods of economic 

uncertainty and increase during times of economic growth. For the FMCS, longer 

average contract durations mean that negotiations will occur less frequently, and should 

result in a smaller number of notices that the FMCS must process each year. Although 

the average contract length has rebounded from its recessionary lows, it has still not 

regained the durations last seen in 1998-2001 and 2005-2008. Thus, despite the rebound 

to 35.5 months in FY 2013, the FMCS does not anticipate a return to consistently longer 

contract durations until the economy stabilizes for an extended period.

For the reasons described earlier, the FMCS expects that labor strife will continue 

as the U.S. economy gradually recovers from the recession. The FMCS also predicts 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 and adapt to the changes mandated by the 

ACA. Ongoing employer efforts to alter or eliminate defined benefit pension plans will 

also increase the likelihood of the continuation of contentious negotiations in the near 

future. Consequently, the FMCS fully expects labor-management negotiations to remain 

contentious, therefore maintaining the need for FMCS services—including early 

engagement in advance of contract expirations in FY 2015 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.1

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

FY 2012 and FY 2013 saved the economy $964 million 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 2013, these stoppages 

directly affected almost 73,300 workers and indirectly affected another 82,000 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. On this precise point, the 

threatened strike described below in the ILA/USMX furnishes a powerful example.

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 33 percent reduction in the duration of any subsequent work stoppage: 

an average reduction of 22 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 emphasis on

 

1 The economic model used by the FMCS was originally developed by the Employment Policy Foundation 

(EPF), a nonprofit, nonpartisan public policy research foundation.
4

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

sectors and industries in the U.S. economy.

Effectively Managing 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 ACA come into force and increase the likelihood of future contract 

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

benefit limits, essential benefits, and guaranteed coverage. Recognizing this challenge, 

the FMCS has continued its initiative to encourage the parties to create and use Joint 

Health Care Committees. The FMCS model encourages a cooperative process instituted 

well in advance of the formal collective bargaining as the parties confront the increased 

complexity of health care benefits bargaining. This early engagement initiative, started 

by the FMCS in 2010 and 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.

The work of the FMCS is as essential to the success of the U.S. economy as it has 

ever been. This reality was powerfully demonstrated throughout FY 2013 by a number 

of high profile disputes for which the parties jointly requested that the FMCS provide 

mediation services. In these cases, and many others, mediation played a critical role in 

collective bargaining agreements ultimately being achieved.

• International Longshoremen’s Association (ILA) and the United States 

Maritime Alliance (USMX) – In late August 2012, the ILA and USMX (a 

multi-employer organization representing numerous large shipping companies 

whose diverse ownership included corporations in the United States, Canada, 

Europe, and Asia) jointly requested FMCS assistance in their ongoing 

negotiation dispute. The dispute involved thousands of longshoremen 

throughout all the major Atlantic and Gulf Coast ports. A realistic strike threat 

existed with a September 30 deadline that would have inevitably crippled the 

nation’s economy at a critical point when it had just begun to show signs of 

recovery from the Great Recession. With the assistance of a top-level FMCS 

team, the parties initially agreed to extend the contract expiration date until 

2013 to avoid serious damage to the entire retail industry’s holiday season along 

with its impact on the consumer public. Thereafter, the parties continued to 

negotiate—again with hands-on assistance from the FMCS—and succeeded in 

achieving a master agreement that provided for six years of stable labormanagement relations. After rank-and-file workers and management ratified 

the master agreement, both parties praised the FMCS efforts, thus marking one 

of the FMCS’s most monumental accomplishments in many years.
5

• Verizon and Communication Workers of America / International 

Brotherhood of Electrical Workers – Verizon and its two unions, representing 

approximately 45,000 employees working in the mid-Atlantic and northeastern 

United States, had been engaged in direct negotiations for more than one year 

without any success. A two-week strike by the unions did not serve to bring the 

parties any closer together on a multitude of contentious economic (most 

especially those dealing with health care) and working conditions issues. At 

that juncture, the parties jointly requested assistance from the FMCS. What 

ensued was 60 days of marathon negotiations under the auspices of a top-level 

team of FMCS mediators, which ultimately produced tentative agreements 

covering the entire work force. Successful ratification of those agreements 

ended the threat of a further strike or lockout and, again, provided the basis for 

an extensive period of stable labor-management relations.

• National Hockey League (NHL) and the National Hockey League Players 

Association (NHLPA) – The National Hockey League and the National 

Hockey League Players Association became the third professional sports league 

in as many years to experience a major labor dispute. As the National Football 

League and the National Football League Referees Association were resolving a 

much publicized two-and-a-half-month lockout with FMCS assistance in 

September, the NHL instituted a lockout of the players in mid-September when 

they were unable to reach agreement with the NHLPA on the terms of a new 

agreement. The parties met jointly with FMCS mediators in late November, but 

after two days of extensive discussions, the mediators ended the session, citing 

the extensive differences between the parties and the inability to find 

meaningful points of compromise between their well-established positions.

The FMCS remained in contact with the principal spokespersons in the ensuing 

weeks, concerned about the aggregate economic impact on industries dependent 

upon NHL games in the 22 U.S. (New York City has two teams) and seven 

Canadian communities and the loss of their economic contributions to the 

impacted communities. As the lockout continued, restaurants, related 

entertainment businesses, hotels, and the arenas which hosted games continued 

to suffer the economic consequences. At the end of December, faced with the 

potential loss of the entire season and little progress meeting without FMCS 

assistance, the parties agreed to make a final attempt to negotiate a new 

agreement and salvage a partial season. In marathon mediation sessions, which 

began on New Year’s Eve, the parties were able to bridge their significant 

differences. Announcing the framework of a new agreement at a joint press 

conference conducted at 6 a.m. Sunday, January 6th, following an 18-hour final 

session, both the NHL and the NHLPA cited the assistance of FMCS mediation 

as critical to their ability to reach agreement. By the end of January, arenas, 

restaurants, concessionaires, and hotels in the affected communities were once 

again at full employment. Overcoming fears of fan alienation and abandonment 

after the third lockout in league history, the shortened season was played before 

record crowds and heightened media ratings.
6

Improving Public and Federal Sector Relationships

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 organizational effectiveness

and allow more cost efficient delivery of services to the public.

Also in FY 2013, FMCS continued its work in support of the implementation of 

labor-management forums for federal government agencies across the country, as 

mandated by Executive Order 13522, issued in 2009, to “promote satisfactory labor 

relations and improve the productivity and effectiveness of the Federal Government.” 

The President’s order required federal agencies to establish “Labor-management forums 

[that] allow managers and employees to collaborate in continuing to deliver the highest 

quality services to the American people.” The purpose of the order was to establish a 

cooperative and productive vehicle for labor-management relations throughout the 

executive branch which would inure to the benefit of taxpayers. The underlying premise 

of the Executive Order is that the public will be better served if the parties “endeavor to 

develop solutions [to problems] jointly.”

To date, the FMCS—often in conjunction with its sister agency, the Federal Labor 

Relations Agency (FLRA)—has participated in more than 1,000 days of joint training 

sessions with government agencies and their union representatives, explaining how best 

first to establish and then to implement the required forums most effectively. In addition, 

given the enormous number of bargaining units throughout the federal government, the 

FMCS, at the behest of the National Council on Federal Labor-Management Relations, 

launched a “train-the-trainer program.” This program was directed at assisting the parties 

jointly in having their own representatives informed and educated concerning how best to 

achieve effective forums.

A new initiative also is in place. Working with the FLRA Problem-Solving 

Resolution group, the FMCS is helping to develop tools and other support for the labormanagement forums. These tools and support include webinars, trainings and prepackaged presentation materials. Work with this group will continue in FY 2014 and 

beyond.

The FMCS also provided its traditional mediation services to assist a number of 

government agencies and their respective labor organizations in reaching collective 

bargaining agreements. Most notably an FMCS mediator, pursuant to the joint request of 

Transportation Security Administration and the American Federation of Government 

Employees, was present throughout their bargaining sessions and was credited by them as 

having played a major role in their ultimately achieving a landmark agreement covering 

45,000 employees, the single largest bargaining unit throughout the federal government. 

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 
7

sustainable employment levels during difficult economic times. 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.

B. Operational Excellence

In recent years, the annual Federal Employee Viewpoint Survey has consistently 

recognized the FMCS 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 to 

identify areas of improvement. Analysis of previous years’ survey results has prompted 

recent initiatives related to improving employee performance evaluation systems and 

encouraging appropriate utilization of telework.

Equally important is the FMCS 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 

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

which will continue into FY 2015. These initiatives 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) and open government, the FMCS is also committed to 

improving transparency and voluntary disclosure of agency information. In FY 2012 and 

2013, the FMCS was recognized by the Department of Justice as one of the top federal 

agencies in how it carried out its responsibilities under FOIA. The FMCS will continue 

these efforts into FY 2015 and expand upon its voluntary disclosures of information in 

machine readable formats.

For FY 2015, the FMCS will continue to collapse and virtualize its information 

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

its progress in meeting administration goals and initiatives relating to telecommuting, 

cloud computing, continuity of operations, and cyber security. Starting in FY 2012, the 

FMCS began a program to leverage its cloud-capable infrastructure by moving 

development platforms and many production applications to the central virtual platform. 

In FY 2015, the FMCS will continue this process as well as expand 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 
8

employees involved in direct program delivery—176 employees (75 percent of its 

workforce) distributed across 66 field stations—the FMCS makes sure to place 

employees in areas where they can provide the greatest benefit. In FY 2013, for the ninth 

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 

FMCS 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 

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 2015, 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 request for 

$45,666,000.
9

II. FMCS Organizational Chart

Director

(Vacant)

Deputy Director

Mediation Services & 

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

National & 

International Programs

Information

Services

Office of

Ethics

As of Mar. 1, 2014
10

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 

Labor-Management 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, [$45,149,000] 

$45,666,000, including $400,000 to remain available through September 30, [2015] 2016, 

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. (Department of 

Labor, Health and Human Services, and Education, and Related Agencies 

Appropriations Act, 2014)
11

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.

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 
12

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.

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).
13

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.

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.
14

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 filed against any agency receiving federal financial assistance to any 

program or activity.

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

amended by Public Laws 106-181 and 112-95, 49 U.S.C. 40122(a)) directs the 

administrator of the Federal Aviation Administration (FAA) and the exclusive 

bargaining representative of its employees to use the FMCS, or a mutually 

agreed upon alternative, to mediate disputes concerning changes to the FAA’s 

personnel management system or the parties’ collective bargaining agreement. 

If mediation is unsuccessful, the FMCS is required to prepare a list of 15 

qualified arbitrators, from which 2 will be selected by the parties and a third 

by the board, to form an arbitration board. This board will render a final and 

binding determination. 

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.
15

IV. Budget Tables and Detailed Financial Requirements

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2013 FY 2014 FY 2015

Total Program

Increase or (Decrease)

Actual Estimated Request 2014 to 2015

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 176 $35,006 185 $36,138 185 $36,548 0 $410

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

3. National Office Support and 

Administrative Services............... 43 8, 042 43 7,902 43 8,009 0 107

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

Sub-Total Appropriated 227 $43,748 236 $45,149 236 $45,666 0 $517
16

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2013 FY 2014 FY 2015

Total Program

Increase or (Decrease)

Actual Estimated Request 2014 to 2015

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: ADR 

Services, Employment 

Mediation, International 

Training, and Institute Courses.... 8 $1,597 8 $1,915 8 $1,915 0 $0

6. FMCS Internal Training and 

Education..................................... 0 621 1 850 1 850 0 0

Sub-Total Reimbursable 8 $2,218 9 $2,765 9 $2,765 0 0

TOTAL RESOURCES 235 $45,966 245 $47,914 245 $48,431 0 $517
17

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET ESTIMATES FISCAL YEAR 2015

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Estimate Request

Personnel Compensation $26,383 $25,422 26,664 26,833

Full-time permanent 26,008 25,331 26,283 26,450

- Full-time permanent positions 26,008 25,331 26,283 26,450

Other than full-time permanent 65 65 66 68

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

Other Personnel Compensation 310 26 315 315

- Overtime & holiday pay 45 7 40 40

- Cash incentive awards 265 19 275 275

Personnel Benefits $7,876 $7,773 $7,910 $8,072

Civilian Personnel Benefits 7,876 7,773 7,910 8,072

- CSRS Retirement Contribution 185 173 160 150

- FERS Retirement Contribution 2,755 2,715 2,795 2,820

- Federal Retirement Thrift Savings Plan Contribution 1,100 1,090 1,108 1,199

- Group life insurance 49 48 49 49

- Health Insurance Contribution 1,662 1,722 1,750 1,785

- OASDI – FERS 1,300 1,291 1,350 1,388

- Employee compensation 401 336 302 285

- Relocation expenses (PCS) 0 0 0 0
18

BUDGET ESTIMATES FISCAL YEAR 2015

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Estimate Request

Personnel Benefits (continued)

Civilian Personnel Benefits (continued)

- Cost-of-living allowance 19 15 15 15

- Subsidy for commuting costs 52 30 26 26

- Medicare contribution 353 353 355 355

Benefits of Former Personnel $0 $2 $0 $0

- Unemployment compensation 0 2 0 0

- Voluntary separation incentive 0 0 0 0

Travel and Transportation of Persons $1,801 $1,598 $1,663 $1,663

- National office travel 140 108 108 108

- Official car 11 5 5 5

- Field office travel 1,650 1,485 1,550 1,550

Transportation of Things $0 $0 $0 $0

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

Rents, Communications, and Utilities 6,208 6,165 6,226 6,463

Rental Payments to GSA 5,250 5,356 5,466 5,703

- Rental payments to GSA 5,250 5,356 5,466 5,703
19

BUDGET ESTIMATES FISCAL YEAR 2015

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Estimate Request

Rents, Communications, and Utilities (continued)

Rental Payments to Others 4 0 4 4

- Conference room rental 4 0 4 4

Communications, Utilities and Miscellaneous Charges 954 809 756 756

- Reproduction equipment rental 0 0 0 0

- Miscellaneous charges 5 1 5 5

- Audio-visual equipment rental 3 0 3 3

- GSA Phones 233 200 200 200

- FTS Phones 37 24 24 24

- Commercial Phones 254 236 180 180

- Data communication services 315 324 320 320

- Postal services and rentals 107 24 24 24

Printing and Reproduction $35 $7 $20 $20

- FMCS forms and other printing 35 7 20 20

Other Contractual Services $2,738 $2,191 $1,735 $1,735

Advisory and Assistance Service 51 24 28 28

- Computer assisted legal research 15 13 13 13

- OPM background investigations 16 1 5 5

- Office equipment and machinery relocation 20 10 10 10
20

BUDGET ESTIMATES FISCAL YEAR 2015

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Estimate Request

Other Contractual Services (continued)

Other Services 605 564 455 455

- Management and professional services 600 559 450 450

- Official representation fund 5 5 5 5

Other purchases of goods and services

from Government Accounts 314 343 300 300

- Guard security and Federal Protective Services 314 343 300 300

Operation and Maintenance of Facilities 87 31 30 30

- Office repairs and alterations 87 31 30 30

Medical Care 21 12 12 12

- Medical care 21 12 12 12

Operation and Maintenance of Equipment 1,660 1,217 910 910

- Maintenance of office equipment 75 107 100 100

- Maintenance of information technology equipment 679 357 360 360

- Information technology support services 856 702 400 400

- Support of payroll/personnel operations 50 51 50 50

- Household goods storage (PCS) 0 0 0 0
21

BUDGET ESTIMATES FISCAL YEAR 2015

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Estimate Request

Supplies and Materials $257 $206 $210 $210

- Office supplies and materials 187 148 150 150

- Information technology supplies and materials 70 58 60 60

Equipment $865 $384 $321 $270

- Furniture and fixtures 116 85 80 80

- Information technology hardware/software 595 298 201 150

- Audio-visual equipment 154 1 40 40

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

Sub-total appropriated $46,163 $43,748 $45,149 $45,666
22

BUDGET ESTIMATES FISCAL YEAR 2015

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Estimate Request

Reimbursable Programs (non-appropriated) $1,235 $1,597 $1,915 $1,915

- Compensation 703 834 960 960

- Benefits 180 228 282 282

- Travel 255 337 280 280

- Communications 1 2 3 3

- Other contractual services 86 185 380 380

- Supplies and materials 10 11 10 10

Sub-total of Reimbursable Programs $1,235 $1,597 $1,915 $1,915

FMCS Internal Training and Education (nonappropriated) $596 $621 $850 $850

- Compensation 0 0 120 120

- Benefits 0 0 30 30

- Seminars, workshops, conferences and training 255 294 300 300

- New mediator costs 124 120 145 145

- Tuition 127 97 127 127

- Other contractual services 12 14 25 25

- Supplies & materials 8 7 20 20

- Subscriptions 70 89 83 83

Sub-total of FMCS Training and Education $596 $621 $850 $850

Sub-total of non-appropriated (reimbursable obligations) $1,831 $2,218 $2,765 $2,765

TOTAL RESOURCES $47,994 $45,966 $47,914 $48,431
23

FEDERAL MEDIATION AND CONCILIATION SERVICE

Detail of Total Employment – End of Year

2013 2014 2015

Actual Estimated Requested

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

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

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

GS-15 .............................................................. 22 21 21

GS-14 .............................................................. 144 153 150

GS-13 .............................................................. 22 26 29

GS-12 .............................................................. 7 5 5

GS-11 .............................................................. 0 2 2

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

GS-9 ................................................................ 5 4 4

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

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

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

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

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

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

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

Subtotal ............................................ 229 240 240

Total employment, end of year..................... 232 * 245 ** 245 **

Full-time equivalent (FTE) usage................. 235 * 245 ** 245 **

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

Average ES Salary .......................................... $163,924 $165,565 $167,100

Average GS Level ........................................... 12.90 12.94 12.94

Average GS Salary .......................................... $112,191 $113,000 $114,100

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

* 8 FTE funded by reimbursable revenue.

** 9 FTE funded by reimbursable revenue.
24

V. 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.
25

A. Collective Bargaining Mediation

Through collective bargaining mediation, 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 contract negotiations—which take place between an 

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

negotiations for successor collective bargaining agreements. FMCS provides mediation 

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

and state and local governments.

During mediation, the mediator’s task is to identify alternative solutions and 

compromises, encourage settlement where appropriate, control the critical timing of 

offers, and persuade the parties to honestly discuss their differences. In FY 2013, FMCS 

mediators were actively involved in more than 4,100 collective bargaining contract 

negotiations in 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 goal of 

preventing unresolved contract interpretation issues from spilling over into future 

contract negotiations. Lengthening contract terms increase the importance of resolving 

contentious issues arising during the term of a contract. In FY 2013, FMCS mediated 

more than 1,800 grievance mediation cases and helped the parties reach agreement in 

1,383 of these (76 percent).

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 improve labor-management relationships by helping 

labor and management to develop collaborative problem-solving approaches. Use of 

these programs better enables the parties to jointly respond to rapidly changing business 

and economic conditions during the term of the contract and also make future mediation 

efforts more effective.

In FY 2013, FMCS mediators conducted more than 2,000 training programs with 

the parties of collective bargaining.

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.
26

• 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. ADR Services

Outside the collective bargaining arena, FMCS provides dispute resolution 

services to other federal, state, and local government agencies on a cost-reimbursable 

basis. The Administrative Dispute Resolution and Negotiated Rulemaking Acts

recognized FMCS’s conflict resolution expertise and called on FMCS to help expand the 

use of alternative dispute resolution throughout government to reduce litigation costs and 

to promote better government decision-making. To this end, FMCS provides sister 

agencies with a wide variety of professional services such as mediating employment 

disputes, designing and building capacity for effective conflict management systems, and 

developing tools for interagency and public-private cooperation and collaboration. In 

FY 2013, FMCS provided ADR services in more than 1,100 cases.

E. 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. The FMCS international 

work is a small, but integral, part of its services. Emerging market economies often 

struggle to compete effectively in a globally integrated marketplace. The FMCS helps 

establish the labor relations institutions that are essential to the smooth functioning of 

free market economies. These programs are also a knowledge-sharing experience: FMCS 

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

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

international implications.

The FMCS international training programs are delivered largely on a costreimbursable basis through interagency acquisition agreements with other government 
27

agencies, such as the Departments of State and Labor and U.S. AID. In FY 2013, FMCS 

mediators designed and/or delivered mediation training programs in China, Vietnam and 

Burma. Better industrial relations practices were developed through joint labormanagement training programs in transitioning democracies, such as Morocco, 

Bangladesh, and Lesotho. In addition to programs delivered abroad, every year, FMCS 

mediators host numerous foreign delegations visiting the U.S. and interested in U.S. 

labor-management relations and conflict resolution practices.

F. Arbitration Services

National labor policy favors arbitration over litigation for settling contractual 

disputes. The FMCS Office of Arbitration Services maintains a roster of approximately 

1,100 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 2013, the Office of Arbitration Services processed almost 

13,400 requests for arbitration panels nationwide. Arbitrators on the FMCS roster heard 

and decided more than 2,100 labor arbitration cases.

G. FMCS Institute for Conflict Management

The FMCS Institute for Conflict Management (Institute) delivers accessible, 

practical, and experience-based conflict resolution training for individuals and small 

groups of employees and managers. The training is specifically designed to meet the 

challenges of labor-management relations and organizational change. The Institute’s 

training programs provide participants the opportunity to interact with and learn from 

experienced practitioners who use these skills every day. Federal mediators and privatesector arbitrators comprise the Institute faculty. Courses offered in FY 2013 included 

Mediation Skills for the Workplace, Labor-Management Negotiation Skills, Evidence 

and Witness Examination in Arbitration, Arbitration for Federal Advocates, The Art and

Science of Inquiry (part of the Essential Neutral Skills series) and Becoming a Labor 

Arbitrator. The Institute runs as a reimbursable program and is funded by fees received 

from training participants.

H. 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 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 2013.
28

VI. Workload Projections – FY 2014 and FY 2015

The FMCS workload over prior fiscal years, caseload estimates, accomplishments 

for FY 2013, and estimated workloads in FY 2014 and 2015 are included in the following 

pages. These estimates should be read in conjunction with the FMCS Annual 

Performance Plan detailed in Section VIII.
29

WORKLOAD OUTPUTS AND PROJECTIONS

FISCAL YEARS 2009 - 2015 

PROGRAM SERVICES

FY 2009

Actual

FY 2010

Actual

FY 2011

Actual

FY 2012

Actual

FY 2013

Estimated

FY 2013

Actual

FY 2014

Estimated

FY 2015

Estimated

1. COLLECTIVE BARGAINING 

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

Assigned Casesi 13,887 14,127 13,712 13,114 13,700 12,938 13,550 13,550

-Private Sector 12,425 12,888 12,460 11,814 12,392 11,802 12,247 12,247

-Public Sector (state and municipal) 1,138 906 943 943 1,007 843 982 982

-Federal Sector 324 333 309 357 300 293 321 321

Mediated Casesii 4,767 4,919 4,665 4,528 4,801 4,122 4,704 4,704

-Private Sector 3,320 3,632 3,271 3,079 3,437 2,826 3,313 3,313

-Public Sector (state and municipal) 1,155 991 1,091 1,111 1,088 981 1,092 1,092

-Federal Sector 292 296 303 338 276 315 299 299

Closed Cases 13,308 12,992 13,776 13,652 13,046 12,651 13,186 13,186

Closed Mediated Cases 3,958 4,005 3,815 3,764 3,912 3,339 3,860 3,860

Activity Rateiii 30% 31% 28% 28% 30% 26% 29% 29%

Settled and Closed Mediated Cases 3,395 3,428 3,234 3,159 3,458 2,807 3,594 3,594

Percentage of mediated cases settled w/FMCSiv 86% 86% 85% 84% 88% 84% 93% 93%

Activity rate in significant casesv 37% 46% 33% 46% 45% 47% 48% 48%

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

Assigned Cases 2,027 2,124 1,968 1,837 1,900 1,872 1,925 1,925

Mediated Cases 2,004 2,084 1,905 1,784 1,863 1,809 1,885 1,885

-Private Sector 1,570 1,708 1,513 1,372 1,463 1,398 1,477 1,477

-Public Sector (state and municipal) 313 239 261 264 298 267 284 284

-Federal Sector 121 137 131 148 139 144 125 125

Settled GM Cases 1,479 1,532 1,428 1,367 1,408 1,383 1,440 1,440

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

PROGRAM SERVICES

FY 2009

Actual

FY 2010

Actual

FY 2011

Actual

FY 2012

Actual

FY 2013

Estimated

FY 2013

Actual

FY 2014

Estimated

FY 2015

Estimated

3. RELATIONSHIP-DEVELOPMENT AND 

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

Number of training programs provided 2,327 2,200 2,301 2,128 2,300 2,027 2,200 2,200

-Private Sector 1,400 1,471 1,267 1,262 1,406 1,174 1,322 1,322

-Public Sector (state and municipal) 682 433 493 463 634 533 539 539

-Federal Sector 245 296 541 403 259 320 340 340

4. ADR Services...................................................

Mediated Cases 1,362 1,392 1,330 1,110 1,300 1,118 1,200 1,200

-Federal Sector 1,336 1,387 1,323 1,090 1,263 1,089 1,181 1,181

-Public Sector (state and municipal) 9 2 3 5 13 1 6 6

-Private 17 3 4 15 24 28 13 13

Settled ADR Cases 638 675 641 537 632 488 574 574

Percent of ADR cases settled w/ FMCSvii 47% 48% 48% 48% 49% 44% 48% 48%

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

Outreach casesviii 3,622 3,240 3,190 3,019 3,200 2,911 3,080 3,080

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

Number of panels issued 16,692 16,486 13,500 13,538 14,000 13,361 14,000 14,000

Number of arbitrators appointed 6,496 6,870 5,575 6,129 5,782 6,020 5,693 5,693

Average number of days for arbitrator 

appointment 2.7 2.1 3.9 2.0 2.0 2.9 2.0 2.0

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

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

Number of participants 187 207 93 179 225 188 200 200
31

VII. Annual Performance Plan

Performance expectations for each service area are guided by the FMCS 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 2013, and performance goals for FY 2014 and FY 2015.
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 mission and its 

most publicly visible work. 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 ....... 29.7 30.8 27.7 27.6 26.4 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 43.9 39.0 35.9 42.6 45.0 45.0

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

* Estimated

20

30

40

50

60

2009 2010 2011 2012 2013 2014* 2015*

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 presence among groups that have not traditionally used its 

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

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 ....... 73.8 75.5 75.0 76.6 76.5 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

2009 2010 2011 2012 2013 2014* 2015*

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 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 ADR cases with settlement reached

Agreement Reached in FY / Cases Closed in FY

Actual ....... 46.8 48.5 48.2 48.4 43.6 50.0 50.0

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

* Estimated

40

45

50

55

60

2009 2010 2011 2012 2013 2014* 2015*

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 2013 FMCS case intake exceeded 21,000. 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 ADR 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.