FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2018

Congressional Budget Submission

&

Annual Performance Plan

Submitted to the

Congress

May 2017
FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2018

Congressional Budget Submission & Annual Performance Plan

Table of Contents

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

A. Rising to the Challenge of the 21st Century Workplace ................................... 2

B. Mediation and Conflict Resolution Services .................................................... 2

C. Accountable Government ................................................................................. 7

D. Conclusion ........................................................................................................ 9

II. FMCS Organizational Chart ................................................................................. 11

III. Appropriation Language ....................................................................................... 12

I. Statutory and Other Legal Authority .................................................................... 13

II. Budget Tables and Detailed Financial Requirements........................................... 17

III. Mission and Program Structure ............................................................................ 26

A. Collective Bargaining Mediation.................................................................... 27

B. Grievance Mediation....................................................................................... 27

C. Relationship-Development and Training........................................................ 27

D. Conflict Resolution and ADR Services for Government................................ 28

E. International Training and Exchange.............................................................. 29

F. Arbitration Services........................................................................................ 30

G. FMCS Institute for Conflict Management ...................................................... 30

H. Labor-Management Committee Grants .......................................................... 30

IV. Workload Projections – FY 2017 and FY 2018.................................................... 32

V. Annual Performance Plan ..................................................................................... 35
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Fiscal Year 2018 Budget Request

I. Executive Summary

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. Congress had the wisdom and 

foresight to recognize that although workplace conflict is inevitable, disruptive work 

stoppages and dysfunctional labor-management relationships need not be. Through 

FMCS, the Federal Government plays a critical role in strengthening America’s 

workplaces by providing limited, voluntary, and strategic assistance that minimizes or 

averts the adverse economic impacts of conflict. More importantly, thriving labormanagement relationships, collaboration, and pragmatic problem solving between 

companies and their workers not only prevent disputes, but also significantly contribute

to increased competitiveness, 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 uphold the Agency’s long and proud record of success in helping its 

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

collaborative problem-solving relationships in order to accomplish its mission. Every 

day, the Agency’s small corps of skilled mediators provides its customers with 

appropriate 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 second decade 

of the 21st Century as it was 70 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 is 

well equipped to assist with making these changes as smooth as possible.

Whether a dispute takes place in traditional labor-management settings and in 

conventional industries and sectors of the economy—such as cargo shipping, oil refining, 

and automobile and steel manufacturing—or among service industry workers and those 
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participating in the new “gig” economy, labor disputes create complex decisions relating 

to costs, hiring and retaining skilled workers, managing technology, and competing 

globally. FMCS, headquartered in Washington, D.C., has strategically positioned ten 

regional offices and maintains more than 60 field stations across the country to help 

American workers and business thrive and succeed.

The 2018 budget requests $48.7 million, an amount which will allow FMCS to 

continue meeting anticipated demand for its statutory activities.

A. Rising to the Challenge of the 21st Century Workplace

FMCS was born during the economic turmoil following the Second World War. 

Then, the U.S. was in the final stages of a disruptive transition from a predominantly 

agricultural to a mostly industrial economy. Now, the U.S. is at a similar point, this time 

in the throes of a transitioning economy that, in addition to manufacturing, includes

advanced technology, knowledge, and services.

Although labor and management most often continue to rely upon traditional 

collective bargaining methods, new bargaining forms have emerged in the past few years, 

such as multi-party dialogues and local legislative initiatives, including high profile social 

media campaigns and community-based rallies. At the same time, there has been a surge 

of traditional organizing and demands for collective bargaining rights among "new 

economy" and previously unorganized workers.

Regardless of the forum or framework, the issues faced in 2018 will be fundamentally 

the same: workers will be seeking to improve their terms and conditions of employment 

and businesses will be seeking to ensure their competitiveness and profitability. In all 

cases, FMCS's highly skilled, professional mediators are uniquely positioned to help 

parties find durable solutions in a transitioning economy and competitive world.

FMCS understands that just as business and labor must innovate and embrace new 

workplace models during times of change, so too must FMCS. Accordingly, the agency 

recently engaged in an in-depth review of its operations and updated its structure and 

services to ensure that it provided the operational excellence, employee engagement, and 

culture of innovation needed to meet the evolving needs of its labor, management, and 

government customers.

B. Mediation and Conflict Resolution Services

With its 70-year history of providing mediation, training, and facilitation services, 

FMCS has more aggregate experience in dispute resolution than any other government 

agency. For the U.S. economy, the FMCS’s statutory mandate to prevent or minimize

economically disruptive labor disputes remains as vital today as it was when Congress 

created the agency.

FMCS is proud of its accomplishments to date and looks forward, in 2018, 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. In 2018, FMCS 

will increase its efforts to:
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Use FMCS mediators' extensive conflict resolution experience and skill to 

improve relationships and create the trust, respect and problem-solving skills 

essential for continued economic growth, increased job security, and greater 

efficiency.

Offer its expertise in varied models of bargaining, including traditional,

modified traditional, and expedited interest-based bargaining.

Assist other government agencies to manage their disputes and resolve 

stakeholder conflict through alternative dispute resolution processes, including 

the facilitation of public policy discussions, and negotiated rulemaking.

Managing Bargaining Challenges: Anticipating Major Contract Negotiations.

In 2018, FMCS expects to receive approximately 20,000 notices of expiring collective 

bargaining agreements. Some 250 of the known expiring contracts involve bargaining 

units of 1,000 members or more and represent a total of more than 1.4 million members. 

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

manufacturing, telecommunications, groceries, health care, trucking, steelmaking, and 

sea ports.

In October 2017, contracts covering more than 22,000 Safeway and Fry’s 

grocery workers in Arizona will expire.

Contracts for AT&T Mobility, covering more than 12,000 

telecommunications workers in nine southern states, will expire in February 

2018. In April, a contract covering 24,000 AT&T Global Services workers in 

the greater Chicago area will also expire. 

In early March, 2018, contracts for more than 7,000 Lockheed Martin 

aerospace workers represented by the Machinists union (IAMAW) will expire 

in California and Georgia.

A contract with the International Brotherhood of Teamsters (IBT) covering 

nearly 25,000 truckers for ABF Freight will expire on March 31, 2018.

On May 31, 2018, contracts with the Culinary Workers union and covering 

nearly 40,000 Las Vegas casino workers at MGM Resorts and Caesars 

Entertainment will expire.

In July, 2018 the contract between United Parcel Service and the International 

Brotherhood of Teamsters (IBT) covering approximately 230,000 workers 

across the nation will expire.

On September 1, 2018, the master agreement for both ArcelorMittal and US 

Steel Corp will expire. This agreement covers nearly 18,000 US Steel 
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workers across the state of Pennsylvania and another 13,000 ArcelorMittal 

workers.

In September, 2018, a contract between the US Maritime Alliance (USMX) 

and the International Longshoremen Association (ILA) covering 

approximately 14,000 longshoremen in critical East Coast ports will expire.

Kaiser Permanente and the Coalition of Kaiser Permanente Unions will 

negotiate a new contract in September, 2018 for approximately 105,000 

workers.

In September, 2018 the League of Voluntary Hospitals and Service 

Employees Union (SEIU) will renegotiate the New York Citywide agreement 

for almost 70,000 employees.

Promoting Collaborative Solutions: Labor-Management Training

While the Agency’s first priority will always be to prevent or to promptly resolve 

labor disputes that could have an immediate adverse impact on the U.S. economy, 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 

dispute.

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, the FMCS labor relations model encourages an ongoing, joint 

problem-solving approach characterized by open communications, respect, trust, and 

transparency.

Promoting Collaborative Solutions: Seed Money for Labor-Management Committees

The Labor-Management Cooperation Act of 1978 created the FMCS LaborManagement grants program and authorized appropriations of up to $10 million annually 

to finance this authority. The act directs FMCS to encourage and support joint labormanagement activities conducted by plant, area, and industry-wide committees that are 

designed to improve labor-management relationships, competitiveness, economic 

development, and innovative joint approaches to achieving organizational effectiveness. 

Congress’ intent was for FMCS to use this program to support and expand upon the 

success of locally created area labor-management committees.

Through its grants program FMCS provides seed money to support plant, area, and 

industry-wide labor-management committees that come together to confront a specific, 

definable problem for which they have developed a defined solution. FMCS funding 

provides innovative solutions through detailed, measurable, and benchmarked strategies 

identified in the application.
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The integrity of the funds is monitored through regular reviews, which include a local 

FMCS mediator assigned to the project, as well as monthly reporting to the program 

manager. Grantees are not permitted to use funds for training or other services available 

through FMCS’s appropriated programs.

The ongoing shift in labor market trends, coupled with the fact that significant labormanagement reform activity is taking place across industries and at the city, state, and 

regional level, requires greater efforts to coordinate activities and successfully prevent 

and manage the conflict that historically accompanies economic and technological 

change. Collaborative solutions, achieved through multi-stakeholder consensus and more 

permanent mechanisms for responding to workplace challenges as they arise are arguably 

more durable and cost effective than piecemeal approaches.

Focusing on community-wide and industry-wide challenges associated with 

transitions in the economy fully supports FMCS grant-making as contemplated by 

Congress in 1978.

Alternative Dispute Resolution Services to Government

In addition to providing labor-management dispute resolution services, the 

Administrative Dispute Resolution (ADR) and Negotiated Rulemakings Acts of 1996 call 

upon FMCS to assist Federal, state, and local government entities in resolving disputes 

arising under their jurisdictions.

On a cost-reimbursable basis, FMCS provides a wide variety of professional services 

to more than 130 Federal agencies and bureaus. These services include: mediating 

employment disputes and disputes involving administrative programs; training in the 

skills and procedures of alternative dispute resolution; consulting, evaluating, designing, 

and building capacity in conflict management systems; facilitating public policy and 

intra/inter-agency discussions; and developing tools for interagency and public-private 

cooperation and collaboration.

Based upon its proven record of past successes, the administration’s focus on reducing 

regulatory burdens, and a growing interest from other Federal agencies, FMCS expects to 

increase its work with Federal regulatory negotiations in 2018. In prior years FMCS 

mediators have played a critical role in regulatory negotiations.

An example of FMCS’s past success in the area of negotiated rule making involved

what has been hailed as the one of the biggest energy-saving standards rulemaking.

FMCS assisted a cross section of industry, government, and advocacy group stakeholders

in achieving major new consensus energy standards for commercial heating and air 

conditioning equipment. The new standards have the potential to save nearly 15 

quadrillion BTUs (quads) of energy over 30 years and reduce energy consumption and 

costs by billions of dollars over the lifespan of the equipment.
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Managing Bargaining Challenges: Recent Major Contract Negotiations

To illustrate the value of its work, the following summaries describe FMCS efforts in 

major cases and activities during fiscal 2016:

Nexteer Automotive Corporation and UAW Local 699. A Saginaw, MIbased mediator successfully assisted the Nexteer Automotive Corporation and 

their 3,350-plus UAW-represented members in reaching a new four-year 

contract. Following a tentative agreement which was soundly rejected, the 

membership went on strike for one day. A subsequent session mediated by 

FMCS resulted in an end to the strike and averted plant shutdowns at 

production lines of the Detroit “Big Three” automaker plants. The giant 

automotive-steering maker has a global workforce of more than 12,000, with 

5,000 based in Michigan.

St. Cloud VA Medical Center and the American Federation of 

Government Employees (AFGE) Local 390. Local AFGE representatives 

and managers at the St. Cloud Medical Center jointly participated in intensive 

training under FMCS auspices to improve workplace cooperation and delivery 

of patient care at the facility. The U.S. Department of Veterans Affairs 

Secretary praised the work of FMCS mediators during a visit to the St. Cloud 

VA Medical Center in St. Cloud, MN and credited FMCS with the improved 

labor-management relations at St. Cloud.

Allegheny Technologies Inc. (ATI) and the United Steelworkers (USW). 

Assisted by Pittsburgh-based mediators, the members of the bargaining 

committee reached a new four-year contract bringing an end to a six-month 

long lockout. The contract affected 2,200 steelworkers at 12 ATI plants 

located in six different states.

Verizon Communications, Inc. and the Communications Workers of 

America (CWA) and International Brotherhood of Electrical Workers 

(IBEW). Following the announcement of an agreement in principle in 

Verizon-CWA-IBEW talks covering some 39,000 workers in the Northeast, 

ending a six-and-a-half-week strike, union officials praised the efforts of the 

Labor Secretary, FMCS Director, and other officials who assisted in the 

successful negotiations.

Brigham and Women’s Hospital and the Massachusetts Nurses 

Association. With several days of late-night assistance from an FMCS 

mediator in negotiations between Brigham and Women’s Hospital (BWH) in 

Boston, MA and the Massachusetts Nurses Association (MNA), labor and 

management representatives averted a potentially disruptive strike by 

approximately 3,300 care-givers at the hospital that would have begun if talks 

between the two had failed.

Kaleida Health System and CWA, SEIU Health care Workers and the 

IUOE. Kaleida Health System is a major health care provider in western New 
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York with more than 7,000-plus workers at various facilities. A Buffalobased mediator worked tirelessly with the parties over several months,

chairing almost two dozen bargaining sessions, the last of which required a 

marathon 20-plus hours to avert a highly disruptive work stoppage.

New York’s Con Edison and the Utility Workers Union of America Local 

1-2. When New York’s Consolidated Edison, Inc. (Con Edison) and the 

Utility Workers Union of America Local 1-2 announced that they had reached 

a new labor settlement, it was after long hours and intensive efforts at the 

bargaining table under the auspices of FMCS mediators, averting a potential 

work stoppage that could have disrupted power to customers and affected 

thousands of working families.

Southern California Supermarket Negotiations. With help from FMCS 

mediators over many months, southern California grocery workers,

represented by local unions of the United Food and Commercial Workers 

(UFCW) and the Ralphs and Albertsons supermarket chains, averted a 

possibly damaging work stoppage, affecting approximately 50,000 

supermarket employees in the region and countless supermarket customers. A 

previous strike by the UFCW locals in 2003-2004 had lasted four-and-a half 

months.

Catholic Health Systems (CHS) and the Communications Workers of 

America (CWA). A Buffalo based mediator assisted labor and management 

in negotiations covering more than 2,500 workers in reaching new contract 

agreements in FY2016. The CHS negotiations included registered nurses at 

Sisters of Charity Hospital, St. Joseph Campus; technical associates at 

Kenmore Mercy Hospital; and registered nurses and service, technical and 

clerical associates at Mercy Hospital of Buffalo.

C. Accountable Government

In 2018, FMCS will ensure that it is a model of government efficiency, integrity, 

employee engagement, and customer service through the continuation of a 2016 initiative 

called “Securing the Future of FMCS Together.” Like many Federal agencies, FMCS 

has experienced many challenges related to employee recruitment, training, consistent 

performance, and retention. For 2018, and beyond, FMCS is committed to meeting and 

exceeding its performance goals.

Creating Structural Integrity and Operational Consistency

As in past years, FMCS continues to use a business-based model for reviewing field 

office utilization for efficiency and cost-effectiveness. This evaluation occurs on a biannual basis and as retirements and attrition present opportunities for non-disruptive 

realignment of its personnel. With the majority of its employees involved in direct 

program delivery—175 employees (75 percent of its workforce) distributed across 67 

field stations—FMCS makes sure to place employees in areas where they can provide the 

greatest benefit at the least cost. FMCS will continue to use a workload evaluation model 
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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.

Increasing Compliance and Strengthening Internal Controls

Concurrent with the move of its national office in early FY 2017, FMCS contracted 

with the National Archives and Records Administration (NARA) to review its records 

keeping policies and systems. In 2018 FMCS will continue to implement the new 

policies and procedures recommended by NARA. Also, FMCS is currently reviewing 

and updating, as necessary, all internal policy statements (FMCS Directives). Improved 

records management, in concert with strengthened financial policies and procedures will 

allow FMCS 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. In 2018, 

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 enables FMCS

to nationally recruit the most diverse, best qualified applicants, while retaining the most 

effective and efficient workforce. To this end, FMCS has revamped and modernized its

HR office. Improvements include: OPM granting FMCS delegated hiring authority; 

FMCS being the first agency to beta test and use the new USA Staffing system; 

developing and implementing consistent on-boarding and mentoring practices across its 

operations; and reviewing and revising employee position descriptions and performance 

standards.

As previously mentioned, FMCS has experienced a significant number of retirements 

and, consequently, new mediator hiring. This turnover places greater emphasis on the 

importance of training and institutional knowledge transfer.

In 2018, FMCS will expand upon the initial success of a new internal training platform 

for employees that it calls its Virtual Academy. This “academy” leverages new internetbased technologies to provide FMCS employees with on-demand programs and live 

webinars that sharpen their skills, develop expertise in new and complex areas, and help 

share institutional knowledge and best practices through mediator “success stories” and 

experiences with colleagues.

Using the Virtual Academy platform is a schedule-friendly and cost-effective way to 

offer training to the FMCS workforce. Recent offerings have focused on timely topics 

such as health care industry bargaining and the bargaining impact of statutes affecting 

health care benefits. This format also allows for mediator-to-mediator peer sharing of 

institutional knowledge critical for diffusion of information and successful innovative 

programs.

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

engagement goals for 2018, FMCS will continue to encourage diverse viewpoints, solicit 

employee feedback and innovation, and practice open communications and increased

transparency.

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

among other things: regular communications from the Director; daily internal and 

external 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; holding monthly meetings with national office managers

focused upon 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 the FMCS workforce on a regular basis.

Modernizing Communications with Customers

FMCS strives to provide high-quality, high-value services to its customers in order to 

meet and fulfill its statutory mission. Equally important is FMCS’s commitment to using 

allocated resources as efficiently as possible in order to ensure that customers and 

taxpayers receive the most value for the services it provides.

In 2018, FMCS will have in place an updated employee intranet and document 

management system. This is in concert with earlier efforts to update Agency technology 

to better serve current and future customers, including: launching a new public website; 

using social media (Facebook, Twitter, and YouTube) to communicate with customers 

and employees; and using a new email service delivery system designed to reach larger 

audiences with information about upcoming live and web-based conflict resolution 

presentations and training events.

As part of its evaluation effort, FMCS relies, in part, upon the results of the annual 

Federal Employee Viewpoint Survey (FEVS). The FEVS results have consistently 

recognized FMCS as one of the best places to work in the Federal Government, including 

in 2014 (2nd place among small agencies), 2015 (1st place among small agencies), and 

2016 (3rd place among small agencies). The 2015 results also designated FMCS as one of 

the “most innovative” Federal agencies, rating highly among 371 Federal agencies and 

subcomponents for fostering innovation and motivating employees to develop new ideas 

on the job.

D. 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.
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Over 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 

FY 2018, 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 $48,655,000.
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II. FMCS Organizational Chart

Director

(Acting)

Deputy Director

Alternative Dispute 

Resolution & 

International Services 

EEO General

Deputy Director, Counsel

Field Operations

Chief of Staff

(Acting)

Budget

 Reg. 01 (Woodbridge, NJ)

 Reg. 02 (Philadelphia, PA)

 Reg. 03 (Pittsburgh, PA)

 Reg. 04 (Cleveland, OH)

 Reg. 05 (Nashville, TN)

 Reg. 06 (St. Louis, MO)

 Reg. 07 (Seattle, WA)

 Reg. 08 (Los Angeles, CA)

 Reg. 09 (Chicago, IL)

 Reg. 10 (Minneapolis, MN)

Human

Resources 

Procurement & 

Operational Services 

Educa ion & Training,

 FMCS Institute

Field Programs & 

Innovation

Manager, National 

Programs & Initiatives

Information

Technology

Office of

Ethics

Finance 

Notice Processing & 

Arbitration

Chief Financial

Officer

Public Affairs

As of Feb. 1, 2017
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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, $48,655,000

including up to $399,000 to remain available through September 30, 2019, 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.

Notes

A full-year 2017 appropriation for this account was not enacted at the time the budget was 

prepared; therefore, the budget assumes this account is operating under the Further Continuing

Appropriations Act, 2017 (P.L. 114–254). The amounts included for 2017 reflect the annualized

level provided by the continuing resolution.

The period of availability for labor management grants is misstated in the 2018 Budget Appendix. 

The correct period of availability should be through September 30, 2019.
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I. 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 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 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, 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 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
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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 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 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 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 labormanagement disputes. This panel was moved to the Atomic Energy 

Commission in March 1956 but was returned to FMCS under an inter-agency 

agreement with the Department of Energy in April 1980 and renamed the 

Energy Labor Management Relations Panel (ELMRP).
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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 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 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 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 

regulatory-negotiation “experiments” 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.

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 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.
16

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 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 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, 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.

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

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

Executive Order 13591 and 13652 until September 30, 2015, permits 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 FMCS or other agreedupon entity, and requires TSA and the unions subject to bargaining to attend 

training in interest-based negotiations conducted by FMCS.
17

II. Budget Tables and Detailed Financial Requirements

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2016 FY 2017 FY 2018

Total Program

Increase or (Decrease)

Actual Estimated Request 2017 to 2018

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

166 $34,862 172 $37,311 172 $37,436 0 $125

2. Arbitration Services.................... 8 702 8 714 8 742 0 28

3. National Office and 

Operational Support ................... 43 12,784 46 10,231 46 10,078 0 (153)

4. Labor-Management Grants......... 0 400 0 399 0 399 0 0 

Sub-Total Appropriated 217 $48,748 226 $48,655 226 $48,655 0 $0 
18

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2016 FY 2017 FY 2018

Total Program

Increase or (Decrease)

Actual Estimated Request 2017 to 2018

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... 9 $1,711 9 $1,880 9 $2,030 0 $150

6. FMCS Internal Training and 

Education.................................... 1 824 1 $1,070 1 $955 0 $(115)

Sub-Total Reimbursable 10 $2,535 10 $2,950 10 $2,985 0 $35

TOTAL RESOURCES 227 $51,283 236 $51,605 236 $51,640 0 $35
19

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2015 FY 2016 FY 2017 FY 2018 2017 to 2018

Actual Actual Estimated Request Change (+/-)

Personnel Compensation $24,992 $25,763 $27,133 $27,784 $651

Full-time permanent 24,625 25,249 26,600 27,235 635

- Full-time permanent positions 24,625 25,249 26,600 27,235 635

Other than full-time permanent 68 235 243 248 5

- Other than full-time permanent positions 68 235 243 248 5

Other Personnel Compensation 299 279 290 301 11

- Overtime & holiday pay 15 21 15 15 0

- Cash incentive awards 284 258 275 286 11

Personnel Benefits $7,848 $8,247 $8,980 $9,239 $259

Civilian Personnel Benefits 7,848 8,247 $8,980 $9,239 $259

- CSRS Retirement Contribution 136 149 125 103 (22)

- FERS Retirement Contribution 2,911 3,095 3,393 3,541 148

- Federal Retirement Thrift Savings Plan Contribution 1,070 1,102 1,224 1,268 44

- Group life insurance 49 45 52 53 1

- Health Insurance Contribution 1,682 1,786 1,958 2,049 91

- OASDI – FERS 1,325 1,317 1,502 1,570 68

- Employee compensation 285 304 239 177 (62)

- Relocation expenses (PCS) 0 87 0 0 0
20

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2015 FY 2016 FY 2017 FY 2018 2017 to 2018

Actual Actual Estimated Request Change (+/-)

Personnel Benefits (continued)

Civilian Personnel Benefits (continued)

- Cost-of-living allowance 15 16 17 18 1

- Subsidy for commuting costs 35 5 150 160 10

- Medicare contribution 340 341 320 300 (20)

Benefits of Former Personnel $0 $2 $3 $3 $0

- Unemployment compensation 0 2 3 3 0

- Voluntary separation incentive 0 0 0 0 0

Travel and Transportation of Persons $1,708 $1,917 $1,743 $1,743 $0 

- National office travel 183 222 188 188 0 

- PCS family travel 0 1 0 0 0 

- Official car 5 6 5 5 0 

- Field office travel 1,520 1,688 1,550 1,550 0 

Transportation of Things $0 $10 $0 $0 $0

- Transportation of household goods (PCS) 0 10 0 0 0

Rents, Communications, and Utilities $6,501 $6,572 $5,292 $6,673 $1,381

Rental Payments to GSA 5,780 5,606 4,300 5,750 1,450

- Rental payments to GSA 5,780 5,606 4,300 5,750 1,450
21

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2015 FY 2016 FY 2017 FY 2018 2017 to 2018

Actual Actual Estimated Request Change (+/-)

Rents, Communications, and Utilities (continued)

Rental Payments to Others 7 1 13 13 0

- Conference room rental 7 1 5 5 0

- Equipment rental 0 0 8 8 0

Communications, Utilities, and Miscellaneous 714 965 979 910 (69)

- GSA Phones 150 119 90 15 (75)

- FTS Phones 24 13 10 5 (5)

- Commercial Phones 180 234 360 360 0

- Data communication services 320 544 466 477 11

- Postal services and rentals 40 55 53 53 0

Printing and Reproduction $40 $40 $55 $45 $(10)

- FMCS forms and other printing 40 40 55 45 (10)

Other Contractual Services $3,677 $4,064 $3,192 $1,699 ($1,493)

Advisory and Assistance Service 50 70 117 95 (22)

- Computer assisted legal research 10 0 21 14 (7)

- OPM background investigations 36 64 90 75 (15)

- Office equipment and machinery relocation 4 6 6 6 0
22

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2015 FY 2016 FY 2017 FY 2018 2017 to 2018

Actual Actual Estimated Request Change (+/-)

Other Contractual Services (continued)

Other Services 618 444 682 460 (222)

- Management and professional services 613 442 677 455 (222)

- Official representation fund 5 2 5 5 0

Other purchases of goods and services 252 235 135 135 0

- Guard security and Federal Protective Services 252 235 135 135 0

Operation and Maintenance of Facilities 1,860 2,084 150 75 (75)

- Office repairs and alterations 60 1 150 75 (75)

- National Office moving (cabling, furniture, fixtures, 

equipment, and IT) 1,800 2,083 0 0 0

Medical Care 15 25 25 25 0

- Medical care 15 25 25 25 0

Operation and Maintenance of Equipment 882 1,206 2,083 909 (1,174)

- Maintenance of office equipment 100 169 150 100 (50)

- Maintenance of information technology equipment 265 347 335 260 (75)

- Information technology support services 468 659 1,564 515 (1,049)

- Support of payroll/personnel operations 49 29 34 34 0

- Household goods storage (PCS) 0 2 0 0 0
23

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2015 FY 2016 FY 2017 FY 2018 2017 to 2018

Actual Actual Estimated Request Change (+/-)

Supplies and Materials $230 $326 $360 $300 ($60)

- Office supplies and materials 150 145 158 148 (10)

- Information technology supplies and materials 80 181 202 152 (50)

Equipment $270 $1,407 $1,498 $770 ($728)

- Furniture and fixtures 80 68 170 80 (90)

- Information technology hardware/software 150 1,080 1,293 655 (638)

- Machinery and equipment 40 259 35 35 0

Grants, Subsidies and Contributions $400 $400 $399 $399 $0

Sub-total appropriated $45,666 $48,748 $48,655 $48,655 $0
24

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2015 FY 2016 FY 2017 FY 2018 2017 to 2018

Actual Actual Estimated Request Change (+/-)

Reimbursable Programs (non-appropriated) $1,910 $1,711 $1,880 $2,030 $150

- Compensation 800 879 950 970 20

- Benefits 230 260 305 310 5

- Travel 245 228 300 305 5

- Communications 4 0 0 0 0

- Other contractual services 621 341 315 435 120

- Supplies and materials 10 3 10 10 0

Sub-total of Reimbursable Programs $1,910 $1,711 $1,880 $2,030 $150

Internal Training and Education (non-appropriated) $950 $824 $1,070 $955 $(115)

- Compensation 135 141 143 145 2

- Benefits 42 42 43 43 0

- Seminars, workshops, conferences and training 332 205 254 254 0

- New mediator costs 189 129 130 133 3

- Tuition 90 219 250 250 0

- Other contractual services 65 9 140 20 (120)

- Supplies & materials 19 5 10 10 0

- Subscriptions 78 74 100 100 0

Sub-total of FMCS Training and Education $950 $824 $1,070 $955 $(115)

Sub-total of non-appropriated (reimbursable $2,860 $2,535 $2,950 $2,985 $35

TOTAL RESOURCES $48,526 $51,283 $51,605 $51,640 $35
25

FEDERAL MEDIATION AND CONCILIATION SERVICE

Detail of Total Employment – End of Year

2016 2017 2018

Actual Estimated Requested

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

ES.................................................................... 3 4 4

Subtotal............................................ 4 5 5

GS-15 .............................................................. 24 23 23

GS-14 .............................................................. 125 121 117

GS-13 .............................................................. 34 42 46

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

GS-11 .............................................................. 5 8 8

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

GS-9 ................................................................ 2 11 11

GS-8 ................................................................ 13 4 4

GS-7 ................................................................ 9 10 10

GS-6 ................................................................ 3 3 3

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

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

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

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

Subtotal ............................................ 223 231 231

Total employment, end of year..................... 227 * 236 * 236 *

Full-time equivalent (FTE) usage................. 227 * 236 * 236 *

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

Average ES Salary .......................................... $169,270 $170,886 $172,590

Average GS Level ........................................... 13.02 12.96 12.93

Average GS Salary .......................................... $112,122 $111,414 $114,046

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

* 10 FTE funded by reimbursable revenue
26

III. 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 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 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 interest-based bargaining, to help the 

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.
27

A. Collective Bargaining Mediation

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

work stoppages to the U.S. economy. 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 2016, FMCS 

mediators were actively involved in more than 3,500 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 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 FY 2016, FMCS 

mediated more than 1,670 grievance mediation cases and helped the parties reach 

agreement in 1,264 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 FMCS. 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 FY 2016, FMCS mediators conducted more than 1,900 training programs with

collective bargaining partners.

Alternative Bargaining Training, such as Interest Bargaining, teaches techniques and

the potential benefits of a non-adversarial, joint problem-solving approach to negotiation. 

FMCS regularly develops, based on the needs of the parties, alternative bargaining 

models to enhance problem-solving and mitigate adversarial relationships. Core training 

programs consist of:

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.
28

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.

Interest-Based Bargaining and Interest-Based Problem Solving

Collective Bargaining and Mediation Training. Trains the parties on 

effective negotiation and communication skills.

D. Conflict Resolution and ADR Services for Government

Outside the collective bargaining arena, FMCS provides professional services to a 

wide range of Federal, state, and government agencies on a cost-reimbursable basis.

ADRA authorizes FMCS to assist in resolving disputes, train persons in skills and 

procedures employed in alternative means of dispute resolution, design conflict 

management systems, build capacity for constructive conflict management, and 

strengthen inter-agency and public-private cooperation. Through this work, FMCS seeks 

to reduce litigation costs and to promote better government decision-making.

In this context, FMCS provided conflict management and ADR services more than 

1,100 times in FY 2016. These services included mediation, convening, facilitation, and 

systems design:

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 (EEO), other types of 

personnel issues and workplace conflicts. FMCS accepts individual and multiparty 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.
29

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.

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. The Negotiated 

Rulemaking Act of 1996 authorizes FMCS to convene and facilitate this 

process. Since the 1980s, FMCS has convened and facilitated dozens of 

negotiated rulemakings for numerous agencies.

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

multiple agency groups tasked with developing a strategic plan or identified 

objective involving complex matters. Interest-based problem-solving and 

collaboration skills are essential to achieving successful outcomes.

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

public policy discussions involving Federal agencies and public-private 

stakeholders such as those conducted under the Federal Advisory Committee 

Act (FACA). 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.

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 delivers its international 

training programs using cost-reimbursable funds, largely through interagency acquisition 
30

agreements with other government agencies, such as the Departments of State, Labor, 

and USAID.

The FMCS international work is a small, but integral, part of its services. 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. In 2016, FMCS completed training and consultation programs 

in Bangladesh, Burma, Lesotho, Morocco, Honduras, Haiti, and Swaziland. During these

programs, FMCS trainers provided instruction for 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 numerous 

foreign delegations visiting the United States and educate them in U.S. labormanagement relations and conflict resolution practices. In 2016, FMCS hosted visiting

delegations from Taiwan and Honduras at the Agency’s Washington, D.C. headquarters.

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 

1,000 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 Labor-Management Disputes, to which FMCS is a signatory.

During FY 2016, the Office of Arbitration Services processed more than

12,000 requests and oversaw the appointment of more than 5,400 arbitrators nationwide.

G. FMCS Institute for Conflict Management

The FMCS 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 privatesector arbitrators comprise the Institute faculty. 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 FMCS to 

encourage and support joint labor-management committees “established for the purpose 
31

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 FMCS annual 

appropriations, and grants are competed and awarded to encourage labor-management 

committees to develop innovative joint approaches to workplace problems. In FY 2016, 

FMCS awarded $514,486 in grants. Awarded funds included:

Helen Miller Member Education and Training Center & SEIU HCII. 

Funds addressed a need to engage front-line hospital employees and hospital 

management to jointly identify areas for improvement in order to successfully 

transition health care delivery into the new performance-based systems that 

reward patient satisfaction, successful health care outcomes, and efficient 

service delivery. The grantees expect that the partnership projects will lead to 

stronger performance on value-based purchasing and other frontline worker 

performance metrics. This will in turn lead to reduced payment reimbursement 

penalties by Medicare and Medicaid.

Manufacturing Renaissance & Chicago Federation of Labor. Between 1979 

and 2009, manufacturing employment fell by 41 percent and wages have 

remained historically stagnant due to global competition, the infusion of new 

technologies, and lean processes. This, in turn, has negatively impacted 

communities, schools, local services, and the ability of workers to provide for 

their families. Grant funds will be used to build strategic public-private 

partnerships focused on creating a vision for advances manufacturing in the 21st

century. The project expects to foster healthy communities by developing 

collaborative, locally tailored programs that will fuel manufacturing innovation 

and competitiveness.

Golden Living Nursing Home Centers & SEIU Health care PA Training 

and Education Fund. Nursing homes are being inundated with standards, 

regulations, best practice guidelines for efficient processes, and many other 

obligations or recommendations set forth by the Centers for Medicare and 

Medicaid Services (CMS) and the Affordable Care Act (ACA). While these are 

intended to improve patient safety, they can also have a negative impact on the 

flow of work if labor and management are not communicating well. By 

creating a Quality Assurance and Performance Improvement (QAPI) committee 

at each participating facility, one which includes management and frontline 

staff, the three facilities will improve employee satisfaction, work flow, and 

patient outcomes.
32

IV. Workload Projections – FY 2017 and FY 2018

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

estimates, accomplishments for 2016, and estimated workloads in 2017 and 2018.
33

WORKLOAD OUTPUTS AND PROJECTIONS

FISCAL YEARS 2012 - 2018 

PROGRAM SERVICES

FY 2012

Actual

FY 2013

Actual

FY 2014

Actual

FY 2015

Actual

FY 2016

Estimated

FY 2016

Actual

FY 2017

Estimated

FY 2018

Estimated

1. COLLECTIVE BARGAINING 

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

Assigned Casesi 13,114 12,938 12,054 11,636 12,500 11,734 12,360 12,360

-Private Sector 11,814 11,802 10,856 10,620 11,307 10,678 11,180 11,180

-Public Sector (state and municipal) 943 843 905 749 898 738 888 888

-Federal Sector 357 293 293 267 295 318 292 292

Mediated Casesii 4,528 4,122 4,009 3,719 4,267 3,540 4,230 4,230

-Private Sector 3,079 2,826 2,697 2,600 2,971 2,435 2,949 2,949

-Public Sector (state and municipal) 1,111 981 1,020 842 1,011 808 1,000 1,000

-Federal Sector 338 315 292 277 285 297 282 282

Closed Cases 13,652 12,651 12,032 11,644 12,217 11,605 12,081 12,081

Closed Mediated Cases 3,764 3,339 3,299 3,081 3,497 2,941 3,466 3,466

Activity Rateiii 28% 26% 27.4% 28.8% 28.6% 25.3% 28.7% 28.7%

Settled and Closed Mediated Cases 3,159 2,807 2,852 2,605 2,972 2,516 2,955 2,955

Percentage of mediated cases settled w/FMCSiv 84% 84% 86.5% 84.6% 85% 85.5% 85.3% 85.3%

Activity rate in significant casesv 46% 47% 40.6% 42.6% 48.0% 38.7% 45.0% 45.0%

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

Assigned Cases 1,837 1,872 1,762 1,729 1,850 1,713 1,750 1,750

Mediated Cases 1,784 1,809 1,704 1,676 1,805 1,670 1,708 1,708

-Private Sector 1,372 1,398 1,330 1,319 1,411 1,269 1,334 1,334

-Public Sector (state and municipal) 264 267 256 240 267 267 253 253

-Federal Sector 148 144 118 117 128 134 121 121

Settled GM Cases 1,367 1,383 1,308 1,221 1,376 1,264 1,301 1,301

Percentage of cases settled w/ FMCSvi 77% 76% 76.8% 72.9% 76.2% 75.7% 76.2% 76.2%
34

PROGRAM SERVICES

FY 2012

Actual

FY 2013

Actual

FY 2014

Actual

FY 2015

Actual

FY 2016

Estimated

FY 2016

Actual

FY 2017

Estimated

FY 2018

Estimated

3. RELATIONSHIP-DEVELOPMENT AND 

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

Number of training programs provided 2,128 2,027 1,884 1,923 2,000 1,941 2,000 2,000

-Private Sector 1,262 1,174 1,111 1,090 1,192 1,107 1,192 1,192

-Public Sector (state and municipal) 463 533 436 472 491 471 491 491

-Federal Sector 403 320 337 361 317 363 317 317

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

Mediated Cases 1,110 1,118 910 1,193 1,200 1,076 1,200 1,200

-Federal Sector 1,090 1,089 884 1,152 1,177 1,057 1,177 1,177

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

-Private 15 28 20 38 17 16 17 17

Settled ADR Cases 537 488 410 536 562 479 562 562

Percent of ADR cases settled w/ FMCSvii 48% 44% 45.1% 44.9% 46.8% 44.5% 46.8% 46.8%

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

Outreach casesviii 3,019 2,911 2,710 2,722 2,900 3,049 3,000 3,000

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

Number of panels issued 13,538 13,361 13,179 12,744 13,500 12,250 12,500 12,500

Number of arbitrators appointed 6,129 6,020 5,836 5,415 5,489 5,296 5,391 5,391

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

Number of grants funded 0 0 0 8 3 3 10 10

8. INSTITUTE.....................................................

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

Number of participants 179 188 114 151 200 142 180 180
35

V. Annual Performance Plan

Performance expectations for each service area are guided by the FMCS current fiveyear 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 2016, and performance goals for 2017 and 2018.
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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.

38

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.
39

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.

41

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 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:

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 assigned, conflict 

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

achieving an increased number of resolved matters, FMCS seeks to provide a costeffective alternative to litigation and promote better government decision making.

43

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 2016 FMCS case intake was nearly 20,000. 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.