FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2021 

Congressional Budget Submission

Submitted to the

Congress

February 2020

i

FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2021

Congressional Budget Submission

Table of Contents

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

A. Budget Request Overview..............................................................................2

B. Rising to the Challenge of the 21st Century Workplace...................................3

II. Program Structure and Service Descriptions.........................................................4

A. Alternative Dispute Resolution Services to Government.................................5

B. Collective Bargaining Mediation....................................................................7

C. Grievance Mediation ......................................................................................8

D. Relationship Development and Training.........................................................8

E. International Training and Exchange ..............................................................9

F. Arbitration Services......................................................................................10

G. FMCS Institute for Conflict Management.....................................................10

H. Accountable Government.............................................................................10

I. Conclusion ...................................................................................................12

III. Appropriation Language ....................................................................................13

IV. FMCS Organizational Chart...............................................................................14

V. Statutory and Other Legal Authority ..................................................................15

VI. Budget Tables and Detailed Financial Requirements..........................................19

VIII. Workload Projections – 2020 and 2021..............................................................26

IX. Annual Performance Plan...................................................................................29

1

I. Executive Summary

More than seventy years ago, Congress created the Federal Mediation and Conciliation 

Service (FMCS) through the Labor-Management Relations Act of 1947 (Taft-Hartley) as 

an independent agency of the Federal Government and charged it with preventing and 

minimizing labor-management disputes affecting interstate commerce by providing 

mediation, conciliation, and voluntary arbitration services. In 1978, and again in 1990, 

Congress expanded FMCS’s mission to include: resolving Federal sector labor disputes; 

encouraging labor-management cooperative activities; resolving disputes arising out of 

grants, contracts, licenses, or other agency administrative actions; and assisting in the 

negotiated rulemaking process.

Congress had the wisdom and foresight to recognize that although workplace conflict is 

inevitable, disruptive work stoppages, dysfunctional labor-management relationships, and 

protracted disputes need not be. Through FMCS, the Federal Government plays a critical

role in strengthening America’s private sector and Federal workplaces by providing 

limited, voluntary, and strategic assistance that minimizes or averts the adverse economic 

impacts of conflict. More importantly, an environment of thriving labor-management 

relationships, collaboration, and pragmatic problem-solving between parties in dispute not 

only prevents costly disputes, but also significantly contributes to increased 

competitiveness, efficiency, job growth, and enhanced economic well-being.

As a non-regulatory and independent agency, the services that FMCS provides to 

American business and Federal agencies are largely voluntary. Consequently, FMCS 

mediators must provide useful and relevant services in order to accomplish its mission. 

Every day, the Agency’s small corps of skilled mediators provide private sector and 

Federal customers with essential conflict resolution strategies designed to enhance 

organizational effectiveness, improve competitiveness, increase jobs and job security, and 

promote organizational efficiency.

The need for FMCS conflict resolution strategies is just as great in this third decade of 

the 21st Century as it was 74 years ago. As in earlier periods of economic transition, new 

technologies and business models are fundamentally changing nearly every sector of the 

U.S. economy and as a result, increasing the likelihood of workplace conflict. 

Additionally, employers and workers continue to confront instability and rapid change in 

both retirement and health care benefits. Such change presents enormous challenges and 

opportunities for American workers and employers across all economic sectors. FMCS 

commits to assist with making these changes as smooth as possible.
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A. Budget Request Overview

FMCS requests $48.6 million for 2021. This amount will allow FMCS to continue 

meeting anticipated demand for its services from both private and Federal sector customers. 

This request represents an increase of $1.4 million (3 percent) over its 2020 request. In 

2021, these additional funds will provide for:

Funding for FERS actuarial adjustments, employee awards, and pay increases 

($900,000). On July 12, 2019, OMB issued Memorandum 19-24 (Guidance on Awards 

for Employees and Agency Workforce Fund Plan), directing agencies to review and 

update their current awards spending plans. This increase in awards spending supports 

agency pay-for-performance efforts and must be no less than 1 percentage point of GS 

salary spending in FY 2021. For 2021, this represents an increase of $230,000 for 

FMCS in its awards spending and brings its total employee incentives award program 

to approximately 2.5 percent of 2021 salaries.

In June 2019, the Office of Personnel Management (OPM) announced actuarial 

changes to the Federal Employees Retirement System (FERS) that resulted in an 

overall 2.3 percentage point increase for 2020 (16.8 percent for FERS and 19.3 percent 

for FERS-RAE/FRAE) and an overall 1.3 percentage point increase for 2021 

(8.1 percent for FERS and 9.1 percent for FERS-RAE/FRAE). These increases cost 

FMCS $673,000 in 2020 and will cost an estimated $335,000 in 2021.

In addition to those increases, in December 2019 Congress approved a 3.1 percent pay 

raise for 2020, which will cost FMCS $665,000. Finally, the Administration has 

announced plans to propose a one percent civilian pay increase in 2021 that will cost 

an estimated $263,000.

Redeveloping and enhancing the ADR.gov web site ($300,000). In 2019, FMCS 

assumed operation of the ADR.gov web site from the Department of Justice, and the 

Shared Neutrals program from the Department of Health & Human Services, at no cost 

to the government. These acquisitions enhance FMCS’s capacity to become the 

alternative dispute resolution (ADR) provider of choice for the Federal Government. 

FMCS proposes to expand the functionality of the ADR.gov web site at a minimal cost 

to better promote the program and to provide ADR practitioners in the Federal 

Government with access to critical resources. These include best practices, training

materials, and enhanced “Find a Neutral” search functionality.

Offsetting mandatory increased FPS charges ($200,000). In early 2019, the Federal 

Protective Service (FPS) notified FMCS that a new pricing model would result in a 

635 percent increase in FMCS’s FPS costs, from $143,000 in 2019 to $1,050,000 in 

2022. In the entire Federal Government, this pricing change affected FMCS the most,

due to FMCS having offices in non-Federal spaces. 

FMCS moved aggressively in 2019 to minimize the effect of these future cost increases, 

converting more than 20 of its field stations around the country into home offices. 

Despite these closings, FMCS still faces a nearly $200,000 increase in FPS costs in 

2021. FMCS has an additional 10 offices that it can potentially close, but due to 

existing reimbursable work agreements and leases with the General Services 

Administration (GSA), these additional closings are not feasible in 2021.
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B. Rising to the Challenge of the 21st Century Workplace

As FMCS approaches its 74th year strengthening the conflict management and resolution 

capacities of numerous Federal agencies and resolving some of the country’s most 

intractable and economically threatening labor disputes, its role today is no less important 

than in the past. In recent years, FMCS mediators have worked with critical agencies such 

as the Department of Homeland Security, the Internal Revenue Service, and the 

Department of Health and Human Services, to train their staff to mediate disputes and 

manage conflict internally on an ongoing basis. FMCS mediators have also mediated labor 

negotiations in the movie making, ship building, professional sports, manufacturing, 

education, and symphony orchestra industries.

Through its experiences with the specialized issues of numerous industries, working in 

a variety of settings, and adapting to the challenges that social media communications bring 

to training and bargaining, FMCS has learned to assist labor and management in new ways 

using new methods. At the same time, FMCS has remained true to the intent of Congress, 

both when it created the Agency and when it subsequently expanded FMCS’s role to 

include dispute resolution in the Federal sector.

Building upon its core traditional negotiation and relationship development training 

program, FMCS has added cutting-edge conflict theory to its skill set. Recent examples of 

trainings in this area includes: The Neuroscience of Conflict, Communicating Across 

Perceptions, Alternative Bargaining Models, the Art of Negotiation, Repairing Broken 

Relationships, Conflict Coaching, and the applying technology to these processes. In 

recent years, FMCS mediators have pioneered an innovative bargaining model—Affinity 

Bargaining—which accomplishes a once-thought impossible goal of negotiating complex 

economic issues in a problem-solving, transparent fashion. This model has enabled parties, 

in even the most strained financial circumstances, to reach mutually satisfying outcomes 

in record time. The economic portion of negotiations can normally take days, weeks and 

even months, yet in most instances, parties are reaching economic deals in less than a day 

with the Affinity Bargaining model.

FMCS is proud of its past accomplishments and looks forward, in 2021, to intensifying 

its efforts to educate and inform business and labor of the value and benefits of the 

Agency’s training, facilitation, and dispute resolution services.
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II. Program Structure and Service Descriptions

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 FMCS’s 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.

In support of its mission, 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 70 years, 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 FMCS’s work within collective bargaining 

relationships. FMCS today provides a range of services to labor and management, such as 

relationship-development training and training in interest-based bargaining, to help parties 

deal effectively with disputes that may arise between them without resorting to work 

stoppages. The following section describes FMCS’s comprehensive package of core 

programs and services.
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A. Alternative Dispute Resolution Services to Government

The Federal Government has long recognized that ADR provides a much less expensive 

and time-consuming alternative to litigation in the Federal courts. FMCS provides 

professional services to a wide range of Federal, state, and government agencies on a costreimbursable basis. Through this work, FMCS seeks to reduce litigation costs and to 

promote better government decision-making. Services offered by FMCS include:

• Workplace and Employment Disputes. FMCS mediates workplace and 

employment disputes for Federal and state agencies. The majority of these 

disputes concern claims of employment discrimination, other types of personnel 

issues, and workplace conflicts. FMCS accepts individual and multi-party 

conflicts for mediation.

• Disputes Involving Administrative Programs. FMCS also mediates disputes 

between agencies and their “regulated public,” such as whistleblower 

complaints or disputes involving contracts, grants, licenses, enforcement, and 

administrative programs.

• Training Persons in the Skills and Procedures Employed in Alternative 

Means of Dispute Resolution. FMCS also provides training in conflict 

resolution to aid in the effective use of alternative dispute resolution throughout 

the Federal Government. To that end, FMCS offers both live and web-based 

training on a variety of topics relating to conflict dynamics.

• Consultation, Evaluation, and Systems Design. FMCS provides professional 

conflict resolution specialists to help agencies design conflict prevention and 

resolution systems to build capacity for constructive conflict management 

systems. Systems design may include an initial consultation, an assessment, 

program design and development, training delivery, and program management 

follow-up.

• Facilitation During Decision-Making. Particularly in times of limited 

budgets, FMCS facilitation services can help agencies achieve cost savings 

when decision-making is delegated to a committee, task force, or other type of 

group. FMCS facilitation services, including consultation, convening, training, 

and the actual facilitation, help groups accomplish their tasks within specified 

time frames. Notably, these services can be provided both onsite and virtually, 

another valuable time- and cost-saving feature of FMCS facilitation services.

• Negotiated Rulemaking. Negotiated rulemaking is a process in which a 

government agency invites persons and groups potentially impacted by a 

proposed rule to participate in its drafting. Interested parties who might 

otherwise oppose or challenge the rule are given the chance to participate in its 

formulation, thus reducing post-issuance challenges.

• Agency Cooperation & Collaboration. FMCS can facilitate intra-agency or 

multiple agency groups tasked with developing a strategic plan or identified 
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objective involving complex matters. Interest-based problem-solving and 

collaboration skills are essential to achieving successful outcomes.

• Public Policy Dialogues. Similarly, FMCS is called upon to facilitate public 

policy discussions involving Federal agencies and public-private stakeholders 

such as those conducted under the Federal Advisory Committee Act. These 

multi-party stakeholder discussions can benefit from the assistance of a skilled 

and neutral facilitator experienced in synthesizing discussion points and 

interests, as well as establishing and overseeing meeting structures and 

processes. Training and coaching are also available for participants.

FMCS provided conflict management and ADR services to government entities more 

than 1,210 times in 2019. These services included:

▬ Facilitated dialogue among affected stakeholders prior to the finalization of 

regulations issued by Federal agencies. For decades, this process has reduced 

litigation challenging such regulations and thereby avoids the direct and indirect 

costs of such litigation to both Federal agencies as well as the non-Federal 

stakeholders. Clients included the Department of Energy, the Department of 

Transportation, and the Department of Education.

▬ Reached agreements with Federal agencies to improve the efficiency of their

dispute resolution systems. Recent agreements include a project to reduce a 

backlog of 1,000 complaints by the general public against the Social Security 

Administration and to reduce a 13,000 case backlog at the Equal Employment 

Opportunity Commission’s Administrative Judge stage of litigation. These 

agreements are in addition to longstanding mediation services provided to 

various agencies within the Department of Homeland Security (e.g., ICE, CBP, 

USCIS), the U.S. Postal Service, the National Institutes of Health, and the 

Department of Health & Human Services, Office of Civil Rights, among many 

others.

▬ Worked with nine of the 28 local Federal Executive Boards (FEBs) to provide 

mediation trainings for the interagency mediation Shared Neutrals program. 

Shared Neutrals provides participating federal agencies with access to a pool of 

trained, collateral-duty federal employees who provide mediation services to 

other agencies in exchange for like services from other participating agencies. 

FMCS mediators delivered the initial trainings and will co-meditate and mentor 

the Shared Neutrals until they gain enough experience to serve as lead 

mediators and subsequently mentor others. FMCS is currently working or has 

recently worked with the FEBs to provide trainings to Shared Neutrals in 

Denver, Boston, Chicago, Minneapolis, New Orleans, New York, Newark, 

Pittsburgh, and St. Louis, and is holding discussions with other FEBs to develop 

future training programs.

▬ Trained mediators outside of the Shared Neutrals program at a variety of 

Federal agencies. Recent clients include the Department of Health & Human 
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Services, Internal Revenue Service, and Office of Personnel Management’s 

Senior Executive Service Training program, among others.

B. Collective Bargaining Mediation

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

work stoppages to the U.S. economy. As part of its core work, FMCS mediates 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 help the parties 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 2019, FMCS mediators were actively involved in nearly 2,900 collective bargaining 

contract negotiations in every major industry throughout the United States.

In 2021, FMCS expects to receive approximately 19,000 notices of expiring collective 

bargaining agreements. Some 240 of the known expiring contracts involve bargaining 

units of 1,000 members or more and represent a total of more than 1 million members. 

Many of these expiring agreements are in key private sector industries, such as the 

construction and mechanical trades, groceries, telecommunications, transportation, and 

health care, and also in Federal agencies with critical national security roles.

Appalachian Regional Hospital and United Steel Workers

This negotiation involved 2,200 employees in 11 different bargaining 

units across 11 hospitals in Kentucky and West Virginia, all with 

differing agendas. After several 12-hour negotiating sessions mediated 

by FMCS, the parties reached a tentative agreement on a master 

contract covering housekeeping, maintenance, janitorial, radiology, 

nursing aids, truck drivers, office staffing, respiratory, and clinical staff. 

The mediator tested 30 different settlement scenarios until the parties 

reached a consensus on one of them.

The parties later said they never would have gotten an agreement 

without FMCS’s assistance. In fact, the union was ready to strike 

without voting. The union’s International President sent two National 

Representatives to the negotiations and was just about to release the 

strike notice when a deal was struck with FMCS assistance. The 

International President asked the National Representatives “did you 

have Houdini?” They replied “no—we had a Federal mediator."
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C. 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 becoming contentious issues in future contract 

negotiations. Lengthening contract terms increase the importance of resolving contentious 

issues arising during the term of a contract. In 2019, FMCS mediated 2,441 grievance 

mediation cases and helped the parties reach agreement in 1,763 of these (72 percent).

D. Relationship Development and Training

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

is another important goal of FMCS. Experience demonstrates the enormous value of 

training parties in the tools and techniques of collaboration and joint problem-solving well 

in advance of any contract expiration. The Agency’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 the private and Federal sectors, FMCS will continue to offer a wide range of programs 

designed to prevent workplace disputes and improve labor-management relationships. 

These programs help the parties develop collaborative problem-solving approaches for 

managing conflict. Developed through decades of hands-on dispute resolution experience, 

Nevada National Security Test Site (Aviation Mechanics) 

and Teamsters Local 631

This bargaining unit is composed of 42 aircraft mechanics who service 

aircraft from the Nevada National Test Site and other secure areas of 

interest to national security. In addition to its impact on national 

security, a work stoppage would have resulted in serious financial 

impact to over 2,400 employees who depend on air service or 

associated work at the test site. FMCS was called in following stalled 

negotiations, two failed ratification votes on “last, best and final” offers,

and a passed strike authorization vote.

At the time FMCS was called in, the predominant issues were wages 

and paid time off (PTO) accruals. The mediator worked with the 

parties to not only understand the other side’s proposals but, more 

importantly, understand their figures and comparisons. This was key 

in reaching an agreement. With both sides understanding the figures 

with more depth, the parties were able to clear up previous 

misunderstandings as to costs and move on to the PTO and wages. 

By the second day of mediated negotiations, the parties were able to 

reach a tentative agreement that was eventually ratified.
9

FMCS’s labor relations model encourages an ongoing, joint problem-solving approach 

characterized by open communication, respect, trust, and transparency.

In 2019, FMCS mediators conducted more than 1,950 training programs with collective 

bargaining partners.

Core training programs consist of:

• 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.

• Interest-Based Problem-Solving Training. Gives the parties a structured 

methodology to agree on a common definition of a problem, share their 

respective underlying interests with respect to the problem and then jointly 

brainstorm solutions that can be justified and supported publicly using agreedupon criteria.

• Relationship by Objectives. 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.

• 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.

• Collective Bargaining and Mediation Training. Trains the parties on 

effective negotiation and communication skills.

E. International Training and Exchange

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

resolution around the world. FMCS delivers its international training programs using costreimbursable funds, largely through interagency acquisition agreements with other 

government agencies, such as the Department of Labor, and foreign governments and 

international organizations.

FMCS’s international work is a small but integral part of its services. FMCS helps 

establish the labor dispute resolution institutions that are essential to the smooth 
10

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.

In 2019, FMCS completed training and consultation programs in Guatemala, Thailand, 

and Jordan. During all these programs, FMCS mediators provided instruction for 

government labor inspectors, labor representatives, employer representatives, government 

officials, and other labor dispute stakeholders. They also provided consultative support for 

governments in these countries to assist in their efforts to develop effective dispute 

resolution systems and organizations.

In addition to programs delivered abroad, every year FMCS mediators host several 

foreign delegations visiting the United States and educate them in U.S. labor-management 

relations and conflict resolution practices. Notably in 2019, a mediator from Taiwan 

attended one week of new mediator training in Glendale, CA.

F. Arbitration Services

National labor policy favors arbitration over litigation for settling contractual disputes. 

FMCS’s Office of Arbitration Services maintains a roster of approximately 1,000 

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

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

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

render a decision. FMCS administers its established policies and procedures on arbitration, 

which also incorporate the Code of Professional Responsibility for Arbitrators of LaborManagement Disputes, to which FMCS is a signatory.

During 2019, the Office of Arbitration Services processed nearly 11,000 requests and 

oversaw the appointment of more than 4,300 arbitrators nationwide.

G. FMCS Institute for Conflict Management

FMCS’s Institute for Conflict Management (Institute) delivers accessible, innovative, 

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 private-sector 

arbitrators comprise the Institute faculty. The Institute runs as a reimbursable program and 

is funded by fees received from training participants.

H. Accountable Government

In 2021, FMCS will continue to meet the highest standards of government efficiency, 

integrity, employee engagement, and customer service by sustaining a culture of 

continuous improvement among the Agency’s highly motivated workforce. Like many 

Federal agencies, FMCS has experienced occasional challenges related to employee 

recruitment, training, consistent performance, and retention. However, FMCS employees 
11

and their level of commitment continue to keep the Agency at the forefront among similarly 

sized units of the Federal Government. Year after year, FMCS has typically scored among 

the top agencies in the results of the Federal Employee Viewpoint Survey (FEVS), 

administered by the Office of Personnel Management (OPM).

More specifically, the FEVS results recognized FMCS as one of the best places to work 

in 2014 (2nd place among small agencies), 2015 (1st place among small agencies), 2016 (3rd

place among small agencies), and 2017-2018 (1st place among small agencies). For 2021

and beyond, FMCS is committed to meeting and exceeding its performance goals and 

surpassing its past successes as documented by the FEVS results.

Increasing Compliance and Strengthening Internal Controls

In 2021, FMCS will continue to implement the new policies and procedures 

recommended by the National Archives and Records Administration in conjunction with 

the Controlled Unclassified Information initiative and document management program. 

FMCS will have a fully functional electronic records management system in place in 2021. 

Improved records management, in concert with strengthened financial policies and 

procedures, will allow FMCS to continue to demonstrate effective and efficient use of 

public resources.

Reforming Hiring Practices and Managing Performance

Small agencies often face a challenge in attracting talented job applicants. Poor name 

recognition and perceived or real lack of career advancement opportunities are chief among 

these challenges. In 2021, and in the ensuing years, FMCS seeks to maintain and improve 

upon its position as one of the most desirable places to work in government. 

Achieving this goal requires that FMCS recruit from a broader base of potential 

applicants from the neutral and management community. To strengthen our ability to 

innovate and deliver high-quality services, FMCS is recruiting mediators with a greater 

diversity of career trajectories beyond collective bargaining experience. In the current 

environment, the most effective mediator may not have traditional labor experience but

may instead be someone who is able to develop and offer a wide range of FMCS services.

Through the Share Our Stories initiative, FMCS is incentivizing mediators to be as 

insightful as possible in sharing experiences with their colleagues. In 2020, FMCS 

completed a new set of mediator performance criteria and transitioned to a more automated 

performance management system. In combination, these systems will provide more 

opportunity for the Agency to focus on improving the quality and effectiveness of the 

services it provides.

Promoting Employee Engagement

Employee engagement is a process designed to ensure that employees are committed to 

the organization’s goals and values, vested in the organization’s success, and are 

simultaneously able to enhance their own sense of well-being. To meet its employee 

engagement goals for 2021, FMCS will continue to encourage diverse viewpoints and 
12

innovation, solicit employee feedback, and practice open communications and 

transparency.

FMCS will continue to use a number of strategies to achieve its objectives, including: 

regular communications from the Agency leadership; daily news roundups; quarterly 

virtual town hall meetings; regular newsletters featuring up-to-date information about 

significant cases and training programs; regular meetings with all levels of staff that focus 

on goals, action plans, and deliverables; providing field directors with opportunities for 

regular information exchange and collaboration; and a continuation of open forums to 

constructively engage FMCS’s workforce on a regular basis.

I. Conclusion

The U.S. economy is in a period of transition on many levels. While these

transformations present great opportunities, they also present the challenge of increased 

workplace conflicts as workers and businesses grapple with issues of technology, 

automation, competition, skills, and cost-cutting. Workplace disputes are arising in both 

traditional labor-management collective bargaining settings, as well as in high profile 

social media and community-based campaigns for improved wages and working 

conditions.

Over more than seven decades, FMCS has compiled a proud record of success in helping 

parties resolve disputes, learn joint problem-solving skills, and create successful, 

collaborative problem-solving relationships. As the nature, complexity, and range of the 

issues confronting managers and employees in business and government have evolved, so 

too has FMCS, constantly seeking new and innovative methods to prevent disruptions to 

the U.S. economy, to reduce costs to U.S. taxpayers, and, most importantly, to help 

managers and workers together overcome the challenges of the changing economy in 

business and government workplaces.

Given the anticipated size and number of collective bargaining agreements expiring 

in 2021, the need to fill vacant mediator positions to meet the anticipated demand for 

FMCS services, and the ongoing need for labor and management to work collaboratively 

to achieve competitiveness, economic development, and job security, we urge you to 

favorably consider this request for $48,600,000.
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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, $48,600,000: 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.
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IV. FMCS Organizational Chart

Director

(Nominee)

Senior Advisor EEO

Public & 

Congressional Affairs

General

Counsel

Chief Operating Officer

Finance 

Information

Technology

Budget

Procurement and 

Operational Support

Human

Resources 

Arbitration & Notice 

Processing

National Rep.

Conflict Management & 

Prevention

Deputy Director, 

Field Operations

North East District

 (Woodbridge, NJ)

Mid Atlantic District

 (Philadelphia, PA)

Great Lakes District

 (Cleveland, OH)

South East District

 (Nashville, TN)

South Central District

 (St. Louis, MO)

North West District

 (Seattle, WA)

South West District

 (Los Angeles, CA)

North Central District

 (Minneapolis, MN)

Headquarters District

 (Washington, DC)

Center for Conflict 

Resolution Education

Support Services

Strategy & 

Development

Division of Agency 

Initiatives

Principal Deputy 

Director

As of Feb. 10, 2020
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V. Statutory and Other Legal Authority

FEDERAL MEDIATION AND CONCILIATION SERVICE

Title II of the Labor-Management Relations Act of 1947 (Taft-Hartley) established the 

Federal Mediation and Conciliation Service (FMCS) as an independent agency of the 

Federal Government whose primary mission is to prevent and minimize labor-management 

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 labor-management 

cooperative activities. It also authorized the issuance of grants to support joint labormanagement activities conducted by plant, area, public sector, and industry-wide 

committees.

In 1990, the Administrative Dispute Resolution Act and the Negotiated Rulemaking 

Act authorized FMCS 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 labormanagement 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 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 FMCS 30 days prior to a contract termination or modification date so 

that mediation services may be proffered.
16

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)(C)) (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 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 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. 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 FMCS to provide for 

the appointment of arbitrators to decide disputes concerning compensation for 

the use or development of pesticide registration data.

VII. 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 directs FMCS 
17

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 FMCS to provide grant funds to assist in the establishment and 

operation of these labor-management committees.

VIII. 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” of the past have become well-accepted processes of 

Federal agencies. 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 FMCS may provide all forms of ADR 

assistance to Federal agencies. Under this legislation, FMCS continues to assist 

agencies in negotiated rulemaking processes as well as other ADR procedures 

by providing training, facilitation, mediation, and other neutral skills.

IX. 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 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.

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

amended by Public Laws 106-181, 112-95, and 114-242; 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 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, FMCS is required to prepare a list of 

15 qualified arbitrators, from which two will be selected by the parties and a 

third by these two, to form an arbitration board. This board will render a final 

and binding determination.
18

XI. The Veterans Health Care Capital Asset and Business Improvement Act of 2003 

(Public Law 108-170, as amended by Public Law 111-163, 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 requesting the services 

of FMCS to assist the parties in reaching an agreement regarding disputes with 

respect to any system of promotion and advancement proposed by the 

Secretary.

XII. The Transportation Security Administration Determination, “Transportation 

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

facilitation of collective bargaining negotiations by FMCS or another agreedupon entity, and requires TSA and the unions subject to bargaining to attend 

training in interest-based negotiations conducted by FMCS.
19

VI. Budget Tables and Detailed Financial Requirements

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET AND STAFFING BY ACTIVITY

FY 2019 FY 2020 FY 2021

Total Program

Increase or (Decrease)

Actual Estimated Request 2020 to 2021

Full-Time 

Equivalent 

Employment

Budget 

Authority

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Request

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Request

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Authority

($1,000s)

1. Collective Bargaining and 

Grievance Mediations 

(Dispute), Relationship 

Development Training 

(Preventive), and Outreach 

(Public Information) 

Workloads ....................... 162 35,162 167 35,541 167 36,304 0 763

2. Arbitration Services ......... 7 746 7 858 7 896 0 38

3. National Office and 

Operational Support ......... 46 10,742 49 10,801 49 11,400 0 599

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

Sub-Total Appropriated 215 $46,650 223 $47,200 223 $48,600 0 $1,400
20

BUDGET AND STAFFING BY ACTIVITY

FY 2019 FY 2020 FY 2021

Total Program

Increase or (Decrease)

Actual Estimated Request 2020 to 2021

Full-Time 

Equivalent 

Employment

Budget 

Authority

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Request

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Request

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Authority

($1,000s)

5. Reimbursable programs: 

ADR Services, 

Employment Mediation, 

International Training, 

Institute Courses, and 

Conference Fund.............. 7 1,821 7 2,617 7 1,842 0 (775)

6. FMCS Internal Training 

and Education .................. 1 1,015 0 853 0 677 0 (176)

Sub-Total Reimbursable 8 $2,836 7 $3,470 7 $2,519 0 (951)

TOTAL RESOURCES 223 $49,486 230 $50,670 230 $50,442 0 $(228)
21

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET ESTIMATES FISCAL YEAR 2021

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2018 FY 2019 FY 2020 FY 2021 2020 to 2021

Actual Actual Estimate Request Change (+/-)

Personnel Compensation $25,294 $25,904 $27,048 $27,593 $545

Full-Time Permanent 24,828 25,420 26,552 26,820 268

Other Than Full-Time Permanent 77 74 76 78 2

Other Personnel Compensation - - - - -

Other Premium and Differential Pay 7 10 10 10 -

Overtime 2 10 10 10 -

Other Personnel Compensation-Awards 380 390 400 675 275

Special Personal Services Payments - - - - -

Personnel Benefits 8,046 8,305 8,702 9,342 640

Benefits/Retirement 7,785 8,090 8,471 9,102 631

Incentives 70 56 74 76 2

Allowances 14 16 8 12 4

Special Payments of Other Funds 177 143 149 152 3

Relocation/Permanent Change of Station (PCS) - - - - -

Benefits for Former Personnel - - 20 20 -

Travel and Transportation of Persons 1,841 1,895 1,934 1,934 -

Domestic TDY 1,839 1,895 1,934 1,934 -

Foreign Travel - - - - -

Training Travel 2 - - - -

Relocation/Permanent Change of Station (PCS) - - - - -

Conference Travel - - - - -
22

BUDGET ESTIMATES FISCAL YEAR 2021

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2018 FY 2019 FY 2020 FY 2021 2020 to 2021

Actual Actual Estimate Request Change (+/-)

Transportation of Things - 2 4 2 (2)

Transportation of Things - - 4 2 (2)

Relocation - 2 - - -

Rent, Communications, and Utilities 6,013 5,996 5,197 5,213 16

Rental Payments to GSA 5,091 5,154 4,275 4,300 25

Rental Payments to Others - - 48 48 -

Communications, Utilities, and Misc. Charges - - - - -

Utilities - - - - -

ADP Rental - - - - -

Telecommunications 881 796 830 821 (9)

Other Rentals - - - - -

Postage 41 46 44 44 -

Printing and Reproduction 40 40 40 40 -

Government Printing - - 20 20 -

Commercial Printing and Duplication 40 40 20 20 -

Advertising/Radio/TV - - - - -

Other Contractual Services 3,892 3,857 3,640 3,506 (134)

Advisory and Assistance Services 2,522 1,986 1,230 990 (240)

Other Services from Non-Federal Sources 3 30 6 6 -

Other Goods and Services from Federal Sources 202 337 338 462 124

Operation and Maintenance of Facilities 207 122 150 92 (58)

Research and Development Contracts - - - - -

Medical Care 22 26 26 26 -

Operation and Maintenance of Equipment - - - - -
23

BUDGET ESTIMATES FISCAL YEAR 2021

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2018 FY 2019 FY 2020 FY 2021 2020 to 2021

Actual Actual Estimate Request Change (+/-)

Other Contractual Services (continued)

Operation and Maint. of Equipment (Non-Travel) 936 1,350 1,890 1,930 40

Relocation/PCS - 6 - - -

Subsistence and Support of Persons - - - - -

Supplies and Material 234 255 294 303 9

Office Supplies and Publications 153 152 199 198 (1)

ADP Supplies and Materials 78 98 90 100 10

Fuel - - - - -

Materials/Parts - - - - -

Other Supplies 3 5 5 5 -

Equipment 610 396 321 647 326

Manufacturing/Production Equipment - - - - -

ADP Software 15 - - - -

ADP Equipment/Hardware 363 250 266 500 234

Telecommunications Equipment - - - - -

Other Equipment and Property 231 146 55 147 92

Grants, Subsidies, and Contributions - - - - -

Interest and Dividends - - - - -

Refunds - - - - -

Unvouchered - - - - -

Financial Transfers - - - - -

TOTAL - APPROPRIATIONS 45,970 46,650 47,200 48,600 1,400
24

BUDGET ESTIMATES FISCAL YEAR 2021

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2018 FY 2019 FY 2020 FY 2021 2020 to 2021

Actual Actual Estimate Request Change (+/-)

Direct Funds

Personnel Compensation 155 107 - - -

Personnel Benefits 52 36 - - -

Travel and Transportation of Persons 530 607 822 639 (183)

Transportation of Things - - - - -

Rent, Communications, and Utilities - - - - -

Printing and Reproduction - - - - -

Other Contractual Services 98 115 24 30 6

Supplies and Material 119 150 7 8 1

Equipment - - - - -

Total - Direct Funds 954 1,015 853 677 (176)

Reimbursable Funds

Personnel Compensation 732 984 990 1,020 30

Personnel Benefits 212 290 310 297 (13)

Travel and Transportation of Persons 148 245 300 310 10

Transportation of Things - - - - -

Rent, Communications, and Utilities - - - - -

Printing and Reproduction - - 2 2 -

Other Contractual Services - 294 1,005 203 (802)

Supplies and Material 429 8 10 10 -

Equipment 10 - - - -

Total - Reimbursable Funds 1,530 1,821 2,617 1,842 (775)

TOTAL - ALL SOURCES 48,453 49,486 50,670 50,442 (228)
25

FEDERAL MEDIATION AND CONCILIATION SERVICE

Detail of Total Employment – End of Year

2019 2020 2021

Actual Estimated Requested

Executive Level III........................................ 0 1 1

ES................................................................. 4 5 5

Subtotal.......................................... 4 6 6

GS-15 ........................................................... 23 25 26

GS-14 ........................................................... 133 124 147

GS-13 ........................................................... 28 33 16

GS-12 ........................................................... 8 8 7

GS-11 ........................................................... 6 6 8

GS-10 ........................................................... 0 0 0

GS-9 ............................................................. 13 13 12

GS-8 ............................................................. 3 3 4

GS-7 ............................................................. 4 5 3

GS-6 ............................................................. 1 1 1

GS-5 ............................................................. 0 0 0

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

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

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

Subtotal.......................................... 219 224 224

Total employment, end of year.................... 223 * 230 ** 230 **

Full-time equivalent (FTE) usage................ 229 230 230

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

Average ES Salary ........................................ $175,390 $168,555 $179,691

Average GS Level......................................... 14 04 14 02 14 03

Average GS Salary........................................ $118,721 $115,963 $119,247

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

* 8 FTE funded by reimbursable revenue.

** 7 FTE funded by reimbursable revenue.
26

VII. Workload Projections – 2020 and 2021

The following pages include FMCS workload over prior fiscal years, caseload 

estimates, accomplishments for 2019, and estimated workloads in 2020 and 2021.
27

WORKLOAD OUTPUTS AND PROJECTIONS

FISCAL YEARS 2015 - 2021

PROGRAM SERVICES

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Estimated

FY 2019

Actual

FY 2020

Estimated

FY 2021

Estimated

1. COLLECTIVE BARGAINING 

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

Assigned Casesi 11,636 11,734 11,280 11,169 11,400 10,709 10,800 10,800

Mediated Casesii 3,719 3,540 3,230 3,024 3,514 2,923 3,445 3,445

Closed Cases 11,644 11,605 11,261 11,178 11,410 10,705 10,822 10,822

Closed Mediated Cases 3,081 2,941 2,616 2,487 3,107 2,429 2,832 2,832

Settled and Closed Mediated Cases 2,605 2,516 2,278 2,120 2,681 2,103 2,419 2,419

Percentage of mediated cases settled w/FMCSiii 84.6% 85.5% 87.1% 85.3% 86.3% 86.6% 85.4% 85.4%

Activity rate in significant casesiv 42.6% 38.7% 36.4% 35.0% 45.0% 23.9% 45.0% 45.0%

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

Assigned Cases 1,729 1,713 1,719 1,745 1,850 2,511 2,200 2,200

Mediated Cases 1,676 1,670 1,650 1,689 1,791 2,441 2,128 2,128

Settled GM Cases 1,221 1,264 1,224 1,316 1,351 1,763 1,589 1,589

Percentage of cases settled w/ FMCSv 72.9% 75.7% 74.2% 77.9% 75.4% 72.2% 74.7% 74.7%

3. RELATIONSHIP DEVELOPMENT AND 

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

Number of training programs provided 1,923 1,941 1,956 1,987 2,200 1,956 2,500 2,500

4. ADR SERVICES.........................................

Mediated Cases 1,193 1,076 1,200 1,201 1,200 1,212 1,500 1,500

Settled ADR Cases 536 479 594 552 552 554 695 695

Percent of ADR cases settled w/ FMCSvi 44.9% 44.5% 49.5% 46.0% 46.0% 45.7% 46.3% 46.3%
28

PROGRAM SERVICES

FY 2015

Actual

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Estimated

FY 2019

Actual

FY 2020

Estimated

FY 2021

Estimated

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

Outreach casesvii 2,722 3,049 2,837 2,890 2,900 2,600 3,200 3,200

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

Number of panels issued 12,744 12,250 11,836 12,758 12,500 10,944 11,200 11,200

Number of arbitrators appointed 5,415 5,296 5,247 5,469 5,514 4,342 4,785 4,785

7. GRANTS .....................................................

Number of grants funded 8 3 11 4 0 0 0 0

8. FMCS INSTITUTE.....................................

Number of courses provided 8 9 9 10 10 10 16 16

Number of participants 151 142 189 190 190 192 384 384

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 FMCS

30 days prior to contract expiration. Not all cases providing notices are assigned. Actual 2019 FMCS case intake was more than 18,000. 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 mediated cases settled divided by the total number of mediated cases.

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

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

vi Defined as the number of ADR cases settled divided by the number of mediated cases closed.

vii FMCS requires all mediators to engage in outreach efforts. These kinds of activities include non-bargaining 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.
29

VIII. Annual Performance Plan

Performance expectations for each service area are guided by FMCS’s current fiveyear strategic plan. FMCS has identified a number of objectives, key implementation 

strategies, and actions needed to achieve each strategic goal. The following section details 

each goal and the programs impacted by them.
30

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 FMCS’s mission and its most 

publicly visible work. An independent study conducted for FMCS found that mediation 

prior to a contract’s expiration date significantly reduces the duration of any subsequent 

work stoppage. 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, 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.

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

mediation services, whether a work stoppage occurred, the duration of any stoppage, and 

the timing of mediators’ involvement. On an aggregate basis, 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.
31

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 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 

FMCS’s work in this area.

The continued success of American employers and employees in a globally competitive 

arena requires a high level of cooperation between labor and management. This is 

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

collective bargaining relationship. Competitive issues can be both complex and subtle and 

require creative solutions that address unique challenges.

FMCS is committed to delivering to its customers the best possible information, 

analysis, practices, and solutions. Through its individual program evaluations, FMCS is 

constantly seeking to improve its core curriculum.
32

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.

• Encourage on-line arbitration referral service case filings.

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 the quality of arbitration services.

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

is one way to build healthier collective bargaining relationships. 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 FMCS’s arbitrator referral service help 

improve its quality.
33

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 the number and variety of dispute mediation services provided to 

government agencies, including, but not limited to, employment mediation, 

regulatory negotiations, public policy disputes, systems design, skills 

development and training, facilitation of inter- and intra-agency cooperation and 

collaboration, mediator coaching and mentoring.

Strategy:

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

settling non-collective bargaining disputes.

Expected Outputs:

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

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

processes.

Discussion:

FMCS’s 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, 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.

By increasing the number of individual employment cases assigned, conflict 

management services and regulatory/enforcement services that FMCS provides, and 

achieving an increased number of resolved matters, FMCS seeks to provide a cost-effective 

alternative to litigation and promote better government decision-making.
34

Strategic Goal #5: Promoting Effective and Efficient Management

Support and cultivate top talent; develop robust and responsive information management 

systems; and create a safe and secure environment for human, digital, and physical assets.

Objectives:

• Ensure responsible financial management to ensure program integrity.

• Manage human capital to create an agile and motivated workforce.

• Optimize IT investments to improve process efficiency and enable innovation.

Actions:

• Maintain a robust internal controls board and process to ensure compliance with 

applicable rules, regulations, and directives.

• Increase the use of in-house expertise to reduce contractual service costs.

Strategies:

• Leverage existing internal capacity in IT, logistical support, and other areas.

• Work with FMCS employees to identify outdated or weak internal processes, job 

descriptions, or inadequate systems.

Expected Outputs:

• Reduced contractual payments for commercial shipping and printer usage fees.

• Improved use of technology and adoption of productivity software and systems.

Discussion:

Responsible financial management is FMCS’s foundation for meeting its commitment 

to spend taxpayer dollars wisely. Implementing a strong, modern financial system and 

internal controls, along with targeted investments, will improve accountability, reporting, 

and decision making. These in turn will lead to cost savings and efficiencies that improve 

how our Agency manages its public funds.

Investing wisely in information technology can help reduce costs and allow FMCS to 

become more agile and responsive in an environment of rapid technological change. From 

externally facing websites to internal applications that manage programs and resources, 

FMCS will create modern, secure information technology solutions that are responsive to 

customer demands, meet Federal security guidelines, and promote information-sharing and 

efficiency within the Agency.

Building a world-class Federal management team and a workforce ready to collaborate 

with colleagues within FMCS, among other Federal departments, and outside the Federal 

Government, will create a more engaged, motivated, and satisfied workforce.