FEDERAL MEDIATION AND CONCILIATION SERVICE 

 FISCAL YEAR 2009 

 Congressional Budget Submission 
 FEDERAL MEDIATION AND CONCILIATION SERVICE 

 FISCAL YEAR 2009 

 Congressional Budget Submission 

Table of Contents 

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

A. Achievements.................................................................................................... 2 

B. Future Challenges ............................................................................................. 3 

C. Conclusion ........................................................................................................ 4 

II. FMCS Organizational Charts.................................................................................. 5 

III. Appropriation Language ......................................................................................... 7 

IV. Statutory and Other Legal Authority ...................................................................... 8 

V. Budget Tables and Detailed Financial Requirements........................................... 12 

VI. Mission and Program Structure ............................................................................ 21 

A. Collective Bargaining Mediation.................................................................... 22 

B. Grievance Mediation....................................................................................... 22 

C. Relationship-Development and Training........................................................ 22 

D. Outreach.......................................................................................................... 23 

E. Employment Mediation .................................................................................. 23 

F. International Training and Exchange.............................................................. 24

G. Arbitration Services ........................................................................................ 24 

H. Grants Program ............................................................................................... 24 

I. FMCS Institute for Conflict Management ...................................................... 25 

VII. Workload Projections – FY 2008 and FY 2009.................................................... 26 

VIII. Program Objectives – FY 2008 and FY 2009....................................................... 30 
1

Fiscal Year 2009 Budget Estimates 

I. Executive Summary 

For over 60 years, the Federal Mediation and Conciliation Service (FMCS or 

Agency) 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. 

As labor-management relationships evolve in response to changes in the national 

and global economic environment, so too have the Agency’s strategies for helping both 

sides to engage in a productive economic relationship. A formidable challenge for the 

Agency in formulating its strategic approach to mediation is the largely voluntary nature 

of mediation in collective bargaining. Even if a collective bargaining relationship would 

benefit from mediation or some other intervention, the Agency cannot force the parties to 

accept its assistance or impose upon them any solutions it may offer. 

Building and maintaining constructive labor-management relationships requires 

the Agency’s field mediators to be skilled facilitators, instructors, and labor-management 

relationship experts to the private and government sectors of the economy and to provide 

a wide variety of specialized services to the parties. Parties rely upon a mediator’s 

expertise and experience to guide them through complex and time-sensitive issues. The 

Agency also maintains and provides rosters of arbitrators. The Agency believes that its 

comprehensive package of programs and services presents an effective way of promoting 

and maintaining healthy collective bargaining relationships. Through its work, the 

Agency provides a significant economic benefit to American businesses, their unionized 

employees, and the American taxpayer. 
2

A. Achievements 

With its history of more than 60 years of providing mediation, training, and 

facilitation services, FMCS has more experience in dispute resolution than any other 

government agency. The best indication of the Agency’s success is work stoppages 

which do not occur and collective bargaining relationships that do not lead to conflict in 

the workplace. Because these successes are difficult to quantify, the Agency estimates its 

impact on the national well-being through an economic model created specifically for it 

and evaluates its organizational effectiveness through a number of other measures. The 

Agency also continually reaches out to labor and management both domestically and 

abroad through its training and its international programs to encourage the development 

of positive labor-management relationships. 

Positive Economic Impact 

In FY 2005, to determine the impact of its services, FMCS entered into an 

agreement with the Employment Policy Foundation (EPF), a nonprofit, nonpartisan 

public policy research foundation that focuses on workplace trends. Using EPF’s 

conservative modeling techniques, the Agency estimates that work stoppages in FY 2006 

and FY 2007 caused employees and businesses to lose an estimated $1.5 billion in wages 

and profits. Disruption to ancillary businesses is estimated to have cost an additional 

$1.6 billion during this period. 

EPF research also showed that early FMCS involvement is critical even when 

work stoppages occur. In FY 2007, FMCS involvement at any time prior to contract 

expiration reduced the duration of any subsequent work stoppage by an average of 

29 percent. When FMCS met with the parties before the contract expired, work 

stoppages lasted an average of 53 days. However, in cases where the parties consented to 

mediation only after the contract expired, the average work stoppage lasted 74 days. 

While the work stoppages data help demonstrate the direct economic benefits of 

mediation, the data dramatically understate the real value FMCS’s services bring to the 

U.S. economy. That value is harder to measure in precise economic terms because of the 

difficulty in modeling the actual value of the stoppages that are avoided through 

mediation. 

Relationship-Building 

FMCS seeks to strengthen labor-management relationships by providing 

preventative mediation services. These programs help labor and management develop 

collaborative problem-solving approaches for responding to changes in business and 

economic conditions that may arise during the term of a contract. These training 

programs not only improve the quality of the parties’ relationships but also make future 

mediation efforts more effective. In FY 2007, Agency mediators worked more than 

2,500 training cases, performing activities such as setting up labor-management 

committees, conducting on-site relationship evaluations, and helping labor and 

management develop their collaborative problem-solving skills. 
3

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

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

important, FMCS helps establish the labor relations institutions that are essential to the 

smooth functioning of free market economies. 

Organizational Efficiency 

FMCS is committed to using allocated resources efficiently. In FY 2007, for the 

third consecutive year, the Agency used a performance matrix to measure the caseload 

performance of its field offices. This performance matrix compares each of its field 

stations against the Agency’s national caseload averages. Performance is evaluated over 

a rolling period of four fiscal years to determine collective bargaining trends in specific 

field stations. The results help ensure that staff and resources are effectively allocated. 

B. Future Challenges 

Many different external factors influence the ability of the Agency to perform its 

work as well as the type of work that it does. For the upcoming year and beyond, the 

Agency will monitor emerging trends in mission-critical areas and spend considerable 

effort keeping mediators informed and up to date on the latest labor relations 

developments. 

Expiring Contracts 

For FY 2008, the Agency will monitor nearly 15,000 collective bargaining 

agreements many of which are in key private sector industries, including construction, 

manufacturing (steel), aerospace, international shipping and the telecommunication 

industries. These and other expiring contracts account for more than 38 percent of the 

private sector unionized workforce, or 3 million workers. Looking further ahead to 

FY 2009, the Agency anticipates over 14,000 expiring contracts to cover at least 

26 percent of the private sector unionized workforce, or 2.1 million workers. The 

Agency estimates that direct wage losses alone from a single day of work stoppage in the 

largest of these expiring contracts would easily exceed FMCS’s entire annual budget and 

cause avoidable damage to the national economy. 

Pay and Benefit Trends 

U.S. companies, large and small, are being impacted by the rising cost of health 

care. Pension costs and retirement security also have become the source of increased 

conflict during contract negotiations. Recent legislative and regulatory changes in the 

nature and structure of employer-provided retirement systems have increased the 

complexities of these issues. 

Skills Maintenance 

Updating the skills of FMCS mediators is an ongoing process and essential to 

ensuring that Agency mediators are well prepared for issues that they might face while 

performing their work. Additional training will be deployed in FY 2008 and FY 2009 
4

that focuses on the recent legislative and regulatory changes that impact employees’ 

retirement security and the parties’ continuing struggle to contain health care costs, as 

well as specific issues arising in industries critical to the nation’s economy. Significant 

emphasis will be placed on increasing the parties’ understanding of mediation benefits 

and increasing the number of negotiations in which FMCS mediators are active. 

C. Conclusion 

FMCS’s mission statement reflects the statutory foundation of the Agency: To 

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

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

disputes through mediation. 

As the scope and complexity of collective bargaining issues facing labor and 

management grow, FMCS will continue to play a critical role in averting labor strife that 

can damage the competitiveness and productivity of U.S. companies, the welfare of their 

employees, and our nation's economic well being. Given the anticipated size and number 

of collective bargaining mediations in FY 2009, the complexity of the issues the parties 

face, and the increased demand and expectations of the labor-management community for 

FMCS services which make collective bargaining more effective, we urge you to 

favorably consider this respectful request for $44,826,000. 
5 

II. FMCS Organizational Charts 

National Management Structure 

Director

Deputy Director

(Acting) 

Chief of Staff

(Acting) Office of the General Counsel 

Ethics 

EEO Manager 

Eastern 

Region 

Western 

Region 

(Acting) 

Arbitration 

and Notice 

Processing 

Services 

Information 

Systems and 

Administrative 

Services 

Offic

Public A

Human 

Resources 

Education and 

Training 

International/ADR Services/

FMCS Institute 

(Acting) 
6 

Field Office Organization 

Deputy Director 

(Acting) 

Eastern Region

Regional Director 

Western Region

Regional Director 

(Acting)

Six Fie

Office

Directo

Mediat

Servic

(Actin

Chicag

IL 

W-0

Nine Field 

Offices

Director of 

Mediation 

Services 

Los Angeles,

CA 

W-08 

Five Field 

Offices

Director of 

Mediation 

Services 

Seattle, 

WA 

W-07 

Eight Field 

Offices

Director of 

Mediation 

Services 

St. Louis, 

MO 

W-06 

Six Field 

Offices

Director of 

Mediation 

Services 

Cleveland, 

OH 

E-04 

Nine Field 

Offices

Director of 

Mediation 

Services Orlando, 

FL 

E-05 

Eight Field 

Offices

Director of 

Mediation 

Services 

Pittsburgh, 

PA 

E-03 

Seven Field 

Offices

Director of 

Mediation 

Services 

Philadelphia,

PA 

E-02 

Five Field 

Offices

Director of 

Mediation 

Services 

Woodbridge,

NJ 

E-01 

Sixty-eight (68) Field Offices
7

III. Appropriation Language 

FEDERAL MEDIATION AND CONCILIATION SERVICE 

SALARIES AND EXPENSES 

For expenses necessary for the Federal Mediation and Conciliation Service to 

carry out the functions vested in it by the Labor Management Relations Act of 1947 

(29 U.S.C. 171-180, 182-183), including hire of passenger motor vehicles; for expenses 

necessary for the Labor-Management Cooperation Act of 1978 (29 U.S.C. 175a); and for 

expenses necessary for the Service to carry out the functions vested in it by the Civil 

Service Reform Act, Public Law 95-454 (5 U.S.C. Ch 71), [$43,034,814] $44,826,000: 

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

for special training activities and other conflict resolution services and technical 

assistance, including those provided to foreign governments and international 

organizations, and for arbitration services shall be credited to and merged with this 

account, and shall remain available until expended: Provided further, That fees for 

arbitration services shall be available only for education, training, and professional 

development of the Agency workforce: Provided further, That the Director of the Service 

is authorized to accept and use on behalf of the United States gifts of services and real, 

personal, or other property in the aid of any projects or functions within the Director’s 

jurisdiction. (Departments of Labor, Health and Human Services, and Education, and 

Related Agencies Appropriation Act, 2008.) 
8

IV. Statutory and Other Legal Authority 

FEDERAL MEDIATION AND CONCILIATION SERVICE 

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

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

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

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

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

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

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

by the National Mediation Board. 

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

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

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

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

In 1990, the Agency 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. 

The Homeland Security Act of 2002 contains specific provisions “to ensure 

collaboration” between management of the Department of Homeland Security and 

employee representatives that include the availability of FMCS mediation in the event 

that the parties are unable to agree on proposed personnel changes. Similar provisions 

have been enacted with respect to FMCS’s availability to the Department of Defense and 

the Department of Veterans Affairs. In addition to specifically mandated services, FMCS 

has offered traditional mediation services (applied to both collective bargaining and 

employment disputes), facilitation and training functions (applied particularly to the 

merging of different agency cultures), convening of disparate agency and private groups, 

and conflict systems design assistance and training for organizational/workplace disputes 

as well as for handling external complaints. 
9

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 Agency 

programs are described below. 

I. The Labor-Management Relations Act of 1947 (Public Law 80-101, 29 U.S.C. 

158(d), 173 et seq.) directs the Service 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 Service 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 

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. 

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

(4)) (amending the National Labor Relations Act) include special provisions 

intended to prevent or minimize work stoppages in the health care industry. In 

the case of this industry, FMCS must be notified 60 days before the contract 

termination date. A 30-day notice is required in initial bargaining situations. 

If, in the opinion of the Director, a strike is threatened which would interrupt 

the delivery of health care in a locality, the Director may appoint a board of 

inquiry (29 U.S.C. 183). The board has 15 days within which to operate 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 exclusive representatives of 

their employees. 

IV. The Postal Reorganization Act of 1970 (Public Law 91-375, 39 U.S.C. 1207)

requires the FMCS to establish fact-finding panels and arbitration boards in 

disputes between the Postal Service and the exclusive representatives of its 

employees. 

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

1953, by President Eisenhower, in order to ensure the uninterrupted 
10

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

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

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

the Energy Labor Management Relations Panel (ELMRP). 

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

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

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

VII. The Federal Insecticide, Fungicide and Rodenticide Act of 1978, as amended 

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

for the appointment of arbitrators to decide disputes concerning compensation 

for the use or development of pesticide registration data. 

VIII. The Labor Management Cooperation Act of 1978 (Public Law 95-524, 29 

U.S.C. 175a, 186) added Sections 205A and 302(c)(9) to the LaborManagement Relations Act and authorizes and directs the FMCS to encourage 

and support joint labor-management activities conducted by plant, area, and 

industry-wide committees designed to improve labor-management 

relationships, employment security, and organizational effectiveness. The Act 

authorizes the Service to provide grant funds to assist in the establishment and 

operation of these labor-management committees. 

IX. The Administrative Dispute Resolution Act of 1996 (Public Law 104-320, 5 

U.S.C., 571, et seq., 29 U.S.C.173(f)) 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 1996 Act amended and permanently reenacted the Administrative Dispute 

Resolution Act of 1990 as well as the Negotiated Rulemaking Act of 1990. 

The repeal of the sunset dates and the reporting requirements of the Acts 

suggest that the ADR and regulatory-negotiation “experiments” have become 

well-accepted processes of federal agencies. 

Under the 1996 Act, coverage has been expanded to include additional dispute 

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

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

certain suspensions, removals, examinations, and appointments. The 1996 Act 

encourages the development of guidelines to expedite the selection of neutrals 

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

Government. 
11

Lastly, this legislation amends the Labor-Management Relations Act of 1947 

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

States Code so that the FMCS may provide all forms of ADR assistance to 

federal agencies. Under this legislation, the FMCS continues to assist agencies 

in negotiated rulemaking processes as well as other ADR procedures by 

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

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

Department of Health and Human Services, implementing its authority under 

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

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

charges. 

XI. The Federal Aviation Reauthorization Act of 1996 (Public Law 104-264, 49 

U.S.C. 40122(a)) directs the FMCS to mediate disputes between the 

Administrator of the Federal Aviation Administration and its employee 

representatives concerning changes to the FAA’s personnel management 

system. 

XII. The Homeland Security Act of 2002 (Public Law 107-296, 5 U.S.C. 9701 

(1)(B)(iii)) gives the Secretary of Homeland Security the option of using “the 

services of the Federal Mediation and Conciliation Service” to “facilitate the 

process of attempting to reach agreement” on proposed personnel changes in 

dispute. A majority of employee representatives making recommendations 

with respect to proposed changes also have the option of calling for the 

services of the FMCS. More recently, legislation has been enacted adding 

similar provisions for the Department of Defense (National Defense 

Authorization Act for 2004, Public Law 108-136, 5 U.S.C. 9902 (f)(B)(iii))

and the Department of Veterans Affairs (Veterans Health Care, Capital Asset 

and Business Improvement Act of 2003, Public Law 108-170, 38 U.S.C. 7403 

(h)(4)(C)).
12 

V. Budget Tables and Detailed Financial Requirements 

FEDERAL MEDIATION AND CONCILIATION SERVICE 

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2007 FY 2008 FY 2009 

Actual Estimated Request 

Full-Time 

Equivalent 

Employment

Amount 

Obligated 

Full-Time 

Equivalent 

Employment

Budget 

Authority 

Full-Time 

Equivalent 

Employment

Budget 

Authority 

F

E

E

1. Dispute and Preventive 

Mediations, and Public Information1 ........................ 194 $33,743 194 $33,849 200 $35,216 

2. Arbitration Services............. 8 776 7 725 7 740 3. National Office Support and 

Administrative Services ...... 48 7,934 49 8,461 49 8,871 

4. Labor-Management Grants.. 0 396 0 0 0 0  Sub-Total Appropriated 250 $42,849 250 $43,035 256 $44,826 

1 Collective Bargaining and Grievance Mediations (Dispute), Relationship-Development Training (Preventive), and Outreach (Public In
13 

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2007 FY 2008 FY 2009 

Actual Estimated Request 

Full-Time 

Equivalent 

Employment

Amount 

Obligated 

Full-Time 

Equivalent 

Employment

Budget 

Authority 

Full-Time 

Equivalent 

Employment

Budget 

Authority 

F

E

E

5. Reimbursable programs: 

Employment Mediation, International Training and Institute Courses ................. 7 $893 9 $1,450 9 $1,500 

6. FMCS Training and 

Education ............................ 0 644 0 750 0 750 

 Sub-Total Reimbursable 7 $1, 537 9 $2,200 9 $2,250 TOTAL RESOURCES 257 $44,386 259 $45,235 265 $47,076 
14 

FEDERAL MEDIATION AND CONCILIATION SERVICE 

BUDGET ESTIMATES FISCAL YEAR 2009

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2006 FY 2007 FY 2008  Actual Actual Estimated 

Personnel Compensation $25,090 $25,447 $25,9 Full-time permanent 24,562 24,700 25,3 - Full-time permanent positions 24,562 24,700 25,3 Other than full-time permanent 198 440 2 - Other than full-time permanent positions 198 440 2 Other Personnel Compensation 330 307 3 - Overtime & holiday pay 20 16  - Cash incentive awards 310 291 3Personnel Benefits $6,925 $7,140 $7,3 Civilian Personnel Benefits 6,925 7,140 7,3 - CSRS Retirement Contribution 422 386 3 - FERS Retirement Contribution 2,077 2,154 2,2 - Federal Retirement Thrift Savings Plan Contribution 874 905 9 - Group life insurance 46 46  - Health Insurance Contribution 1,428 1,427 1,5 - OASDI - FERS 1,070 1,107 1,2 - Employee compensation 593 528 5 - Relocation expenses (PCS) $0 $160 
15 

BUDGET ESTIMATES FISCAL YEAR 2009

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2006 FY 2007 FY 2008  Actual Actual Estimated 

Personnel Benefits (continued) Civilian Personnel Benefits (continued)  - Cost-of-living allowance 44 46  - Subsidy for commuting costs 22 29  - Medicare contribution 349 352 3Benefits of Former Personnel $3 $0  - Unemployment compensation 3 0  - Voluntary separation incentive 0 0 Travel and Transportation of Persons $1,665 $1,683 $1,7 - National office travel 111 109 1 - Official car 10 13  - Field office travel 1,544 1,561 1,5Transportation of Things $0 $0  - Transportation of household goods (PCS) 0 0 Rents, Communications, and Utilities $6,053 6,134 6,5 Rental Payments to GSA 5,141 5,269 5,6 - Rental payments to GSA 5,141 5,269 5,6
16 

BUDGET ESTIMATES FISCAL YEAR 2009

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2006 FY 2007 FY 2008  Actual Actual Estimated 

Rents, Communications, and Utilities (continued) Rental Payments to Others 3 3  - Conference room rental 3 3  Communications, Utilities and Miscellaneous Charges 909 862 9 - Reproduction equipment rental 63 62  - Miscellaneous charges 11 5  - Audio-visual equipment rental 0 0  - GSA Phones 244 234 2 - FTS Phones 34 30  - Commercial Phones 259 241 2 - Data communication services 162 172 1 - Postal services and rentals 136 118 1Printing and Reproduction $20 $32 $ - FMCS forms and other printing 20 32 Other Contractual Services $1,618 $955 $9 Advisory and Assistance Service 17 6  - Computer assisted legal research 4 0  - OPM background investigations 1 2  - Office equipment and machinery relocation 12 4 
17 

BUDGET ESTIMATES FISCAL YEAR 2009

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2006 FY 2007 FY 2008  Actual Actual Estimated 

Other Contractual Services (continued) Other Services 787 253 2 - Management and professional services 510 252 2 - Official representation fund 4 1  - Schoolyard services 273 0  Other purchases of goods and services 

from Government Accounts 97 99 

 - Guard security services 97 99  Operation and Maintenance of Facilities 26 15  - Office repairs and alterations 26 15  Medical Care 22 9  - Medical care 22 9  Operation and Maintenance of Equipment 669 573 5 - Maintenance of office equipment 84 95 1 - Maintenance of information technology equipment 321 243 1 - Information Technology Support Services 233 206 2 - Support of payroll/personnel operations 31 29  - Household goods storage (PCS) 0 0 
18 

BUDGET ESTIMATES FISCAL YEAR 2009

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2006 FY 2007 FY 2008  Actual Actual Estimated 

Supplies and Materials $388 $356 $2 - Office supplies and materials 284 219 2 - Information technology supplies and materials 104 137 Equipment $443 $706 $3 - Furniture and fixtures 95 86  - Information technology Hardware/Software 317 619 2 - Audio-visual equipment 7 1  - Schoolyard equipment 24 0 Grants, Subsidies and Contributions $396 $396  Sub total of appropriated $42,601 $42,849 $43,0
19 

BUDGET ESTIMATES FISCAL YEAR 2009

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2006 FY 2007 FY 2008  Actual Actual Estimated 

Reimbursable Programs (non-appropriated) $1,030 $893 $1,4 - Compensation 582 463 8 - Benefits 150 124 2 - Travel 196 203 1 - Communications 2 1  - Printing 0 0  - Other contractual services 88 77 2 - Supplies and materials 12 25  - Equipment 0 0  Sub total of Reimbursable Programs $1,030 $893 $1,4FMCS Training and Education (non-appropriated) $750 $644 $7 - Seminars, Workshops, Conferences and Training 427 316 3 - New mediator costs 43 28  - Tuition 63 87  - Other contractual services 146 142 1 - Supplies & materials 12 7  - Subscriptions & training materials 59 64  Sub total of FMCS Training and Education $750 $644 $7 Sub total of non-appropriated (reimbursable obligations) $1,780 $1,537 $2,2TOTAL RESOURCES $44,381 $44,386 $45,2
20

FEDERAL MEDIATION AND CONCILIATION SERVICE 

Detail of Total Employment – End of Year 

2007 2008 2009 

Actual Estimated Request 

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

ES .................................................................... 0 4 4

 Subtotal............................................ 1 5 5

GS-15 .............................................................. 20 22 23

GS-14 .............................................................. 165 167 165

GS-13 .............................................................. 16 17 23

GS-12 .............................................................. 4 5 5

GS-11 .............................................................. 4 3 3

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

GS-9 ................................................................ 4 2 2

GS-8 ................................................................ 19 19 19

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

GS-6 ................................................................ 8 8 9

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

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

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

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

 Subtotal ............................................ 251 254 260

Total employment, end of year..................... 252 259 265

Full-time equivalent (FTE) usage.................... 257 * 259 ** 265 **

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

Average ES Salary .......................................... $0 $161,000 $167,000

Average GS Level ........................................... 12.86 12.89 12.88

Average GS Salary .......................................... $98,175 $101,500 $105,500

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

* 7 FTE funded by reimbursable revenue. 

** 9 FTE funded by reimbursable revenue. 
21

VI. Mission and Program Structure 

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

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

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

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

through conciliation and mediation.”2

 Subsequent acts of Congress and Presidential 

orders have expanded the FMCS’s role to provide mediation services to the private sector 

and alternative dispute resolution (ADR) programs to Federal Government agencies, as 

well as promote and establish labor-management partnerships in the private sector. 

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. 

Over the past 60 years, the FMCS has provided services that embrace this mission 

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

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

have evolved over time, so, too, has the nature of the Agency’s work within collective 

bargaining relationships. The Agency 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 

 

2

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

by the National Mediation Board under the Railway Labor Act. 
22

without resorting to work stoppages. The following section describes the Agency’s 

comprehensive package of core programs and services. 

A. Collective Bargaining Mediation 

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

cost of work stoppages to the U.S. economy. The 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. The 

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 2007, FMCS 

mediators were actively involved in over 5,300 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 increases the importance of resolving 

contentious issues arising during the term of a contract. 

Continuing recent trends, more than 25 percent of the contracts negotiated were of 

more than three years duration. In FY 2007, the FMCS mediated 1,753 grievance 

mediation cases and helped the parties reach agreement in over 1,200 of these. 

C. Relationship-Development and Training 

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

agreement is another important goal of the Agency. 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. 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. 

FMCS relationship-development and training programs include: 

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

non-adversary, joint problem-solving approach to negotiation. 
23

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

another, particularly where the relationship has worsened after a contentious 

representation election, initial contract negotiation, or strike. 

• Committee Effectiveness Training: Assists the parties in developing joint 

labor-management committees designed to bring the parties into regular 

communication. 

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

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

systems that effectuate change. 

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

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

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

supervisors and shop stewards on their roles and responsibilities in contract 

administration, grievance processing, the arbitration procedure, and 

interpersonal communications for building cooperative relationships. 

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

how to function in a multicultural work setting including the resolution of crosscultural conflicts in a workplace. 

• Collective Bargaining and Mediation Training: Trains the parties on 

effective negotiation and communication skills. 

D. Outreach 

FMCS mediators meet with representatives of labor and management to educate 

the parties about the economic benefits that can result from mediation and how ADR 

services provided by the FMCS can increase labor-management collaboration, improve 

productivity, increase efficiency and avert work stoppages. These outreach events 

include one-on-one meetings, presentations, conferences, symposia, and workshops. 

E. 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 the 

FMCS’s 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 2007, the FMCS mediated 1,060 employment cases. 
24

F. International Training and Exchange 

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

collective bargaining and conflict resolution around the world. The FMCS’s 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. International training programs are also a knowledge-sharing 

experience: the 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. 

The FMCS’s 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. The 

FMCS’s 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. 

G. Arbitration Services 

National labor policy favors arbitration for settling contractual disputes. The 

FMCS’s Office of Arbitration Services maintains a roster of approximately 1,400 

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

interpretation or application of collective bargaining agreements. Upon request from the 

parties, the FMCS furnishes a list of names from which they may choose an arbitrator to 

hear their case and render a decision. 

During FY 2007, the Office of Arbitration Services processed over 

16,200 requests for arbitration panels nationwide. Arbitrators on the FMCS roster heard 

and decided nearly 2,200 labor arbitration cases. 

H. Grants Program 

The 1978 Labor-Management Cooperation Act requires the Agency to encourage 

and support joint labor-management committees “established for the purpose of 
25

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.”3 Grants awarded in the last three fiscal years supported labor-management 

committees representing over two million employees in both the private and public 

sector. The 2008 Appropriation eliminated earmarked funding for grants. 

I. 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, multiparty 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.

 

3

 Public Law 95-524, Oct. 27, 1978, 29 U.S.C. §205 A(a)(1). 
26

VII. Workload Projections – FY 2008 and FY 2009 

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

accomplishments for FY 2007, and estimated workload in FY 2008 and 2009 are 

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

Agency’s strategic program objectives detailed in Section VIII. 
27

WORKLOAD OUTPUTS 

AND PROJECTIONS 

FISCAL YEARS 2008 - 2009 

PROGRAM SERVICES 

FY 2004 

Actual 

FY 2005 

Actual

FY 2006 

Actual 

FY 2007 

Actual 

F

E

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

 Assigned Cases4 18,493 17,102 15,072 14,663 

 - Private Sector 16,738 15,596 13,539 13,245  - Public Sector (state and municipal) 1,295 1,160 1,219 1,107  - Federal Sector 460 346 314 311  Mediated Cases5 4,748 5,215 5,484 5,329  - Private Sector 3,274 3,873 3,874 3,907  - Public Sector (state and municipal) 1,077 1,086 1,319 1,145  - Federal Sector 397 256 291 277  Closed Cases 16,215 13,928 15,664 14,478  Closed Mediated Cases 4,595 4,084 4,486 4,426  Activity Rate6 28% 30% 29% 31%  Settled and Closed Mediated Cases 3,768 3,557 3,864 3,818  Percentage of mediated cases settled through the FMCS7 82% 87% 86% 86%  Activity rate in significant cases8 51% 47% 45% 51% 

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

60 days prior to contract expiration. Not all cases providing notices are assigned. Actual FY 2007 FMCS case intake exceeded 22,000

5 Mediated cases (formerly called “active” cases) represent the number of cases in the FY where mediators have become active in the n6 Defined as the number of closed cases where there was at least one meeting divided by the number of total closed assignments. 7 Defined as the number of active cases settled divided by the total number of active cases. 8 Significant cases are generally defined as situations where the bargaining unit exceeds 1,000. 
28

PROGRAM SERVICES 

FY 2004 

Actual 

FY 2005 

Actual

FY 2006 

Actual 

FY 2007 

Actual 

F

E

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

 Assigned Cases 1,639 1,705 1,632 1,768 

 Mediated Cases 1,544 1,621 1,625 1,753  - Private Sector 1,168 1,232 1,219 1,282  - Public Sector (state and municipal) 205 263 270 316  - Federal Sector 171 126 136 155  Settled GM Cases 1,264 1,212 1,219 1,254  Percentage of cases settled through FMCS9 82% 72% 75% 74% 3. RELATIONSHIP-DEVELOPMENT AND TRAINING .... Number of training programs provided 2,281 2,085 2,445 2,548  - Private Sector 1,565 1,273 1,552 1,591  - Public Sector (state and municipal) 599 708 730 730  - Federal Sector 117 104 163 227 4. EMPLOYMENT MEDIATION............................................ Mediated Cases 1,596 1,008 1,022 1,060  - Federal Sector 1,417 917 993 1,038  - Public Sector (state and municipal) 5 31 13 5  - Private 174 60 16 17  Settled EM Cases 718 484 523 532  Percent of EM cases settled through FMCS10 45% 48% 51% 50% 

9 Defined as the number of grievance mediation cases settled and closed within the fiscal year divided by the number of closed GM ass10 Defined as the number of mediated employment cases settled divided by the number of mediated cases closed 
29

PROGRAM SERVICES 

FY 2004 

Actual 

FY 2005 

Actual

FY 2006 

Actual 

FY 2007 

Actual 

F

E

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

 Outreach cases11 4,741 3,513 3,859 3,847 

6. ARBITRATION SERVICES................................................. Number of panels issued 18,033 16,787 16,854 16,264  Number of arbitrators appointed 7,875 7,592 6,860 6,485  Average number of days for arbitrator appointment NA 2.6 1.1 3.2  Number of complaints regarding overdue awards NA 8 9 9 7. INSTITUTE ............................................................................ Number of courses provided 17 17 7 9  Number of participants 540 450 172 219 

11 FMCS requires all mediators to engage in outreach efforts. These kinds of activities include non-bargaining meetings with labor and 

representatives, attendance at conferences, meetings with local and state officials to offer FMCS services, and presentations designed to 

knowledge. 
30

VIII. Program Objectives – FY 2008 and FY 2009 

Program objectives for each service area are guided by the Agency’s five-year 

strategic plan. This plan was last updated during 2007. For each strategic goal, the 

Agency has identified a number of objectives, key implementation strategies and actions, 

and measures for tracking its performance towards achieving each goal. The following 

section details each goal and presents a matrix identifying the programs impacted by 

them, performance objectives and accomplishments for FY 2007, and performance goals 

for FY 2008 and FY 2009. 
31

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. 

• Assist parties with problem-solving activities 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 Agency’s mission and 

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

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 Agency 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 in those cases that have the potential for permanent shutdowns or disruptions to 

the community, work force, or interstate commerce. 

The Agency 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 Agency 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. 
32

Mediation Outputs and Performance Measures 

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

collective bargaining negotiations. 

Rates of mediator case activity

 Assigned Cases Closed in FY with Meetings / Assigned Cases Closed in FY 

20

25

30

35

40

2004 2005 2006 2007 2008* 2009*

Actual Performance

Linear Trend

 2004 2005 2006 2007 2008* 2009*

 Actual ...................28.3 30.5 28.6 30.6 31.0 31.0

 Target ...................30.0 30.0 30.0 30.0 31.0 31.0

* Estimated 

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

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

43

45

47

49

51

53

2004 2005 2006 2007 2008* 2009*

Actual Performance

Linear Trend

 2004 2005 2006 2007 2008* 2009*

 Actual ...................45.2 46.3 47.7 47.6 48.5 49.0

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

* Estimated 
33

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. 

• Deliver internally sustainable dispute resolution systems. 

• Educate labor and management leaders in the art of building and maintaining 

labor-management partnerships. 

Strategy: 

• Promote the use of FMCS programs and outreach to develop sound and stable 

labor-management relationships. 

Expected Output: 

• Increased customer satisfaction with FMCS educational products and services. 

Discussion: 

Relationship development and training and a number of related activities are 

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

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

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

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

aspect of the Agency’s work in this area. 

American employer and employee continued success in a globally competitive 

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

confrontational bargaining relationships cannot easily accommodate. These competitive 

issues can be both complex and subtle and require creative solutions that address unique 

challenges. Mediators should play a major part in assisting employers and employee 

representatives to improve their organizational effectiveness and to add value to the 

organization through improved labor-management relationships. 

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

information, analysis, practices, and solutions. Through its program evaluations, the 

Agency is constantly seeking to improve its core curriculum. 
34

Building Problem-Solving Relationships Outputs and Performance Measures 

Improve labor-management relationships. 

The Agency is currently investigating appropriate ways for measuring its success 

in improving labor-management relationships and expects to implement a plan for doing 

so in FY 2009. 
35

Strategic Goal #3: Resolving Mid-Term Disputes

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

collective bargaining agreements. 

Objectives: 

• Assist parties to voluntarily resolve contract-based disputes. 

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

voluntarily resolve a contract-based dispute. 

Actions: 

• Increase penetration in groups that have not traditionally used FMCS mediation. 

• Maintain roster of experienced arbitrators. 

• Improve all aspects of the 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 generally 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 begin to negatively affect the collective 

bargaining relationship. 

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

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

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

bargaining activities with less disruption and animosity. 

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

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

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

help the Agency improve the quality of the service.
36

Resolving Mid-Term Disputes Outputs and Performance Measures 

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

collective bargaining agreements. 

Proportion of grievance mediation cases with settlement reached 

 Agreement Reached in FY with Meeting / Cases Closed in FY with Meeting 

65

70

75

80

85

2004 2005 2006 2007 2008* 2009*

Actual Performance

Linear Trend

 2004 2005 2006 2007 2008* 2009*

 Actual ...................82.0 74.7 75.0 73.9 75.0 75.0

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

* Estimated 

Customer satisfaction with arbitration service 

Number of Complaints Regarding Overdue Awards

0

4

8

12

16

20

2004 2005 2006 2007 2008* 2009*

Actual Performance

Linear Trend

 2004 2005 2006 2007 2008* 2009*

 Actual ...................NA 8 9 9 10 10 

 Target ................... 10 10 10 10 10 

* Estimated 
37

Strategic Goal #4: Promoting ADR 

Resolve statute- or regulation-based workplace disputes. 

Objective: 

• Use employment mediation as an alternative to litigation. 

Action: 

• Increase number of employment mediations conducted and reimbursable 

agreements signed. 

Strategy: 

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

settling non-collective bargaining disputes. 

Expected Output: 

• Increase the proportion of settled employment mediation cases. 

Discussion: 

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

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

that do not result from a collective bargaining relationship. Under the Act, the Agency 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, may take several 

years and cost hundreds of thousands of dollars in legal fees and court costs. While the 

Agency provides its ADR services as a reimbursable service, costs generally run less than 

$800 per case and most can be resolved quite quickly. These modest costs are more than 

offset by reduced friction in the workplace and a more productive workforce. 

By increasing the number of ADR cases that the Agency takes and improving the 

rate at which it helps settle cases, FMCS seeks to provide a cost-effective alternative to 

litigation and promote better government decision-making. 
38

Promoting ADR Outputs and Performance Measures 

Resolve statute- or regulation-based workplace disputes. 

Proportion of employment mediation cases with settlement reached 

 Agreement Reached in FY with Meeting / Cases Closed in FY with Meeting 

40

45

50

55

60

2004 2005 2006 2007 2008* 2009*

Actual Performance

Linear Trend

 2004 2005 2006 2007 2008* 2009*

 Actual ...................45.0 48.0 51.2 50.2 50.0 50.0

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

* Estimated