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2009 
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 Message from the Director 

Last year, the worst economic downturn in recent memory severely tested our nation’s labor 

relations and, indeed, the institution of collective bargaining itself. The recession took an 

unprecedented toll in human terms—lost jobs, demoralized and distressed workers and their 

families—as employers felt constrained to cut back their work forces or close their doors. 

Whole communities suffered. As we look ahead hopefully for signs of recovery from the 

deepest recession this country has experienced in many decades, labor and management are 

assessing their past performances and their future prospects, in trying to ascertain where the 

tides of the economy in 2010 and beyond may carry them. 

Unfortunately, speculation is a big part of the process whenever we try to foretell the future. 

There is little about what lies in store in the coming year that can be said for certain. But this 

much is clear: the FMCS is committed to helping labor and management work their way 

jointly through these difficult times by any and all means of cooperation, innovation and 

negotiation. I am cautiously optimistic knowing that collective bargaining has a proven track 

record as an effective tool not only for achieving enlightened worker protections but also for 

enhancing productivity, innovation and competitiveness—central ingredients for an 

economic recovery. 

As Director, I have been impressed by the talent, ingenuity and energy that our dedicated 

FMCS mediators can bring to the table as the parties try to work their way jointly through 

their problems. Among our training activities are specific conflict prevention programs that 

FMCS mediators deliver to improve a labor-management relationship. Even before 

negotiations begin, we can help the parties understand how better to communicate, to manage 

conflict, and to avoid a damaging or disruptive dispute. It may not be possible to avoid all 

labor-management conflict, but certainly it is possible and desirable to help the parties 

manage conflict better. 

I want our customers to know that whenever they jointly request assistance to help improve 

their relationship, the FMCS in general and the Director in particular will do everything we 

can. Whether it is a grievance backlog, a discrete safety and health issue, or a relationship 

that they think needs to be improved, we are ready, willing and able to assist. If there is a 

need to establish a joint labor-management committee, we have people with experience and 

talent in how to train and how to most effectively use a labor-management committee. 

Report for 

Fiscal Year 2009 
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For the coming year, the FMCS has one overriding objective: namely, to pro-actively offer our 

services at the earliest date possible to help improve labor-management relationships. This has 

been my abiding goal, long before accepting this position. As Director of the FMCS, I am glad 

to say that is what this Agency is all about. And in these difficult economic times, I believe our 

customers need us now more than ever. Needless to say, our collective ability to succeed 

depends upon cooperative joint efforts. 

Sincerely, 

George H. Cohen 

Director 
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 FY 2009 Agency Services 

Agency Mission 

For more than 60 years, the Federal Mediation and Conciliation Service (FMCS) has delivered 

neutral and confidential conflict resolution assistance to the nation’s unionized workplaces. The 

core mission of FMCS is to help employers and unions avoid costly work stoppages and 

minimize their potentially devastating effects on regional or national commerce. The FMCS was 

created by Congress as an independent agency in the Labor-Management Relations Act of 1947. 

Our highly trained mediators provide conflict resolution services to the nation’s employers and 

their unionized employees. Our goal is to prevent or minimize interruptions to the free flow of 

commerce that grow out of labor disputes and to improve labor-management relations. The core 

activity of the Agency is collective bargaining mediation; a voluntary process in which mediators 

serve as third-party neutrals to facilitate the settlement of issues in the negotiation of collective 

bargaining agreements. 

A. Collective Bargaining Mediation 

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

stoppages to the U.S. economy. The Agency’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 2009, FMCS mediators were actively 

involved in nearly 4,800 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. Agency 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 2009, FMCS mediated 1,669 grievance mediation cases and helped the parties 

reach agreement in 1,260 of these. 
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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. Effective 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. 

D. Employment Mediation 

Outside the collective bargaining arena, FMCS provides employment mediation services to the 

federal sector and to state and local governments on a cost-reimbursable basis. The 

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

Administrative Dispute Resolution Act of 1996 expanded FMCS’ role as a provider of these 

services. The legislative intent behind these acts was to expand the use of alternative dispute 

resolution throughout the Federal government, reduce litigation costs, and promote better 

government decision-making. The Agency also provides employment mediation to the private 

sector to resolve workplace disputes falling outside of the traditional collective bargaining 

context, i.e., equal employment opportunity disputes. In FY 2009, FMCS mediated 1,362 

employment cases. 

E. International Training and Exchange 

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

and conflict resolution around the world. 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. 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 labor-management disputes with international 

implications. 

FMCS’ international efforts help to level the economic playing field for U.S. companies and 

workers by strengthening the rule of law and workers' rights in developing countries. In addition 

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

standards for all nations, the program helps create the stable and productive work forces that are 

needed to attract foreign investment and improve living conditions. In addition to industrial 

relations, FMCS mediators assist with rule of law initiatives, thereby helping to support 

economic growth and investment. These initiatives include mediation training and working with 

NGOs and other civil society organizations to develop mediation and other FMCS ADR 

programs. FMCS’ international program operations are reimbursed and are funded in part by a 

number of foreign and U.S. agencies, including the U.S. Department of Labor, the U.S. 

Department of State, the U.S. Agency for International Development, and the International Labor 

Organization. 
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F. Arbitration Services 

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

Arbitration Services maintains a roster of approximately 1,400 independent arbitrators who are 

qualified to hear and decide disputes over the interpretation or application of collective 

bargaining agreements. Upon request from the parties, FMCS furnishes a list of names from 

which they may choose an arbitrator to hear their case and render a decision. During FY 2009, 

the Office of Arbitration Services processed nearly 15,900 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 provides training and education to labor and 

management practitioners from multiple organizations in an off-site classroom format. The 

Institute offers training in practical conflict resolution skills, collective bargaining, arbitrator and 

arbitration skills-building, facilitation process skills, multi-party facilitation, cultural diversity, 

equal employment opportunity mediation skills, and workplace violence prevention. The 

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

participants. 
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Mediation Services Program Data

PROGRAM SERVICES FY 2006 FY 2007 FY 2008 FY 2009

1. COLLECTIVE BARGAINING MEDIATION ....... 

 Assigned Cases1 15,072 14,663 14,308 13,887

 - Private Sector 13,539 13,245 12,914 12,425

 - Public Sector (state and municipal) 1,219 1,107 1,083 1,138

 - Federal Sector 314 311 311 324

 Mediated Cases2 5,484 5,329 4,836 4,767

 - Private Sector 3,874 3,907 3,437 3,320

 - Public Sector (state and municipal) 1,319 1,145 1,145 1,155

 - Federal Sector 291 277 254 292

 Closed Cases 15,664 14,478 13,480 13,308

 Closed Mediated Cases 4,486 4,426 3,914 3,958

 Activity Rate3

 29% 31% 29% 29.7%

 Settled and Closed Mediated Cases 3,864 3,818 3,396 3,395

 Percentage of mediated cases settled through FMCS4

 86% 86% 87% 86%

 Activity rate in significant cases5

 45% 51% 38% 37%

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

 Assigned Cases 1,632 1,768 1,749 2,027

 Mediated Cases 1,625 1,753 1,728 2,004

 - Private Sector 1,219 1,282 1,296 1,570

 - Public Sector (state and municipal) 270 316 314 313

 - Federal Sector 136 155 118 121

 Settled GM Cases 1,219 1,254 1,299 1,479

 Percentage of cases settled through FMCS6

 75% 74% 75% 74%

3. RELATIONSHIP-DEVELOPMENT AND 

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

 Number of training programs provided 2,445 2,548 2,356 2,327

 - Private Sector 1,552 1,591 1,390 1,400

 - Public Sector (state and municipal) 730 730 712 682

 - Federal Sector 163 227 254 245

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

 Mediated Cases 1,022 1,060 1,220 1,362

 - Federal Sector 993 1,038 1,205 1,336

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

 - Private 16 17 4 17

 Settled EM Cases 523 532 576 638

 Percent of EM cases settled through FMCS7

 51% 50% 47% 47%

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

 Outreach cases8

 3,859 3,847 3,347 3,622

 

1

 Section 8(d) of the NLRA, 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 FY 2009 FMCS case intake exceeded 21,400. 2

 Mediated cases (formerly called “active” cases) represent the number of cases in the FY where mediators have become active in the negotiations. 3

 Defined as the number of closed cases where there was at least one meeting divided by the number of total closed assignments. 4

 Defined as the number of active cases settled divided by the total number of active cases. 5

 Significant cases are generally defined as situations where the bargaining unit exceeds 1,000. 6

 Defined as the number of grievance mediation cases settled and closed within the fiscal year divided by the number of closed GM assignments. 7

 Defined as the number of mediated employment cases settled divided by the number of mediated cases closed 8

 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. 
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Work Stoppage Information 

2005 2006 2007 2008 2009 

Work stoppages carried from preceding FY 25 52 31 19 29 

Work stoppages beginning within FY 289 247 164 193 103 

Work stoppages closed within FY 262 268 176 183 118 

Work stoppages open at end of FY 52 31 19 29 14 

Average duration of work stoppages in closed cases 

(number of days) 41.1 70.9 63.1 51.8 104.2 

Estimated number of worker-hours lost due to work 

stoppages (1,000s) 18,064 25,175 29,734 20,147 19,609 

Work Stoppage Cost Information 

Direct 

Costs 

Indirect 

Costs 

Total 

Costs 

Year ($1,000s) ($1,000s) ($1,000s) 

1999 883,010 896,481 1,779,490 

2000 3,350,203 3,672,152 7,022,355 

2001 495,484 476,000 971,484 

2002 363,522 461,289 824,811 

2003 372,678 329,595 702,273 

2004 1,102,475 267,260 1,369,735 

2005 488,075 450,737 938,812 

2006 725,180 686,468 1,411,648 

2007 801,314 931,108 1,732,422 

2008 533,971 567,397 1,101,368 

2009 623,264 736,032 1,359,296 

 

Savings to Parties Attributable to Mediation

Reduced 

Incidence

Reduced 

Duration

Total 

Savings

Year ($1,000s) ($1,000s) ($1,000s)

1999 756,974 211,149 968,122 

2000 1,992,529 303,092 2,295,621 

2001 667,206 60,372 727,578 

2002 840,936 272,595 1,113,531 

2003 717,239 224,287 941,525 

2004 2,259,575 173,177 2,432,752 

2005 1,269,679 798,666 2,068,345 

2006 1,320,946 374,872 1,695,818 

2007 888,376 383,386 1,271,762 

2008 1,155,903 (501,807) 654,096 

2009 2,613,336 1,142,193 3,755,529 
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Arbitration Services Program Data

Activity 2005 2006 2007 2008 2009 

 

Panel Requests 15,370 15,572 14,287 14,444 14,072 

Panels Issued9 16,787 16,854 16,264 15,717 16,692 

Arbitrators Appointed 7,592 6,860 6,485 6,568 6,496 

 

Activity Charged For 

Travel Days .46 .46 .45 .45 .57

Hearing Days 1.15 1.11 1.10 1.07 1.10

Study Days 2.40 2.40 2.34 2.43 2.40

Total 4.01 3.97 3.89 3.95 4.07

Average Charges 

Per Diem Rate $836 $860 $883 $913 $962 

Amount of Fee $3,396 $3,605 $3,571 $3,780 $4,049 

Amount of Expenses $336 $335 $359 $391 $421 

Total Charged $3,732 $3,940 $3,929 $4,171 $4,470 

 

9 Frequently, the labor-management parties request more than one panel for arbitration cases, resulting in an increase in the number of panels issued over the number of requests 

received.