FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2016

Congressional Budget Submission

&

Annual Performance Plan
FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2016

Congressional Budget Submission & Annual Performance Plan

Table of Contents

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

A. Mediation and Conflict Management Services................................................. 3

B. Operational Excellence ..................................................................................... 9

C. Conclusion ...................................................................................................... 10

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

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

IV. Statutory and Other Legal Authority .................................................................... 13

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

VI. Mission and Program Structure ............................................................................ 26

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

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

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

D. ADR Services.................................................................................................. 28

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

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

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

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

VII. Workload Projections – FY 2015 and FY 2016.................................................... 31

VIII. Annual Performance Plan ..................................................................................... 34
1

Fiscal Year 2016 Budget Estimates

I. Executive Summary

The Federal Mediation and Conciliation Service (FMCS) 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 

labor-management disputes affecting interstate commerce by providing mediation, 

conciliation, and voluntary arbitration services. The FMCS, headquartered in 

Washington, D.C., has mediators located in more than 60 field stations and ten district

offices across the country and is best known for its history of successful and innovative 

advances in labor-management collaboration, joint problem-solving, and resolving major 

collective bargaining disputes.

While the FMCS fulfills its statutory obligations by mediating collective 

bargaining disputes and by assisting employers and unions in developing collaborative 

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

cost-saving alternative dispute resolution services. Congress recognized this record for 

pioneering dispute resolution techniques and highly skilled professional mediators in the 

Administrative Dispute Resolution Act of 1996, calling upon the FMCS to help other 

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

under their jurisdictions. In all aspects of its work, the FMCS seeks to minimize the 

potential for and the impact of work stoppages, to promote improved labor management 

relationships, and to create innovative conflict management strategies to enhance 

organizational effectiveness.

Despite improved economic conditions anticipated in FY 2016, the lagged effects 

of the “Great Recession” continue to cloud collective bargaining negotiations nationwide 

as employers seek to strengthen their business and employees seek to improve, job 

security, pensions, health care benefits, and recoup wages lost in concessionary 

bargaining during the recession. Adding to this already complex picture, labor and 

management will continue to confront contractual and plan design changes required by 

the Patient Protection and Affordable Care Act of 2010 (ACA).

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

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

on a pro-active, outreach basis. Given the enormous divergence of interests created 

during these exceedingly difficult economic times, experience teaches that constructive 

labor-management relationships are fundamental to the parties' ability to solve problems 

and reach the compromises necessary to achieve productivity increases and sustainable 
2

levels of employment. To this end, and through its jointly-requested, relationshipbuilding programs, the FMCS works with labor and management to establish 

collaborative, productivity-enhancing, relationships.

For FY 2016, the FMCS expects to receive approximately 22,000 notices of 

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

contracts covering at least 25 percent of the private sector unionized workforce, or 

1.75 million workers. Many of these expiring agreements are in key private sector 

industries, such as manufacturing, construction, health care, and entertainment. 

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

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

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

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

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

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

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

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

to 35.6 months in FY 2014, the FMCS does not anticipate a return to consistently longer 

contract durations until the economy stabilizes for an extended period.

For the reasons described earlier, the FMCS expects that labor and management 

will continue to experience contentious negotiations as the U.S. economy gradually 

recovers from the recession. The FMCS also predicts that workers will seek to recoup at 

least some of the wage and benefit concessions many of them made during the depths of 

the recession and press to adapt health benefit changes mandated by the ACA in a 

manner most protective of their overall wage and benefit package. Ongoing employer 

efforts to alter or eliminate defined benefit pension plans in favor of 401(k) or other 

alternatives will also increase the likelihood of continuing complex negotiations.

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

on multiple core, complicated wage and benefit issues, thus maintaining the need for 

FMCS services—including early engagement in advance of contract expirations in FY 

2016 and beyond.
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On the personnel side of its operations, the FMCS experienced a surge in 

mediator retirements in FY 2014, losing more than 252 years of combined mediation 

experience. In response, the FMCS recruited, on-boarded and started training 17 new 

mediators, or slightly more than 10 percent of its mediator workforce. Training new 

mediators is a labor-intensive process, involving 5 weeks of formal classroom training 

and between 6 and 24 months of on-the-job training, and sometimes more. During the 

training period, mediators are not able to assume full caseloads, resulting in lower than 

average workloads.

Finally, in FY 2016 the FMCS national office will be relocating from its longstanding location at 2100 K Street in Washington, D.C. due to the demolition of the 

building it currently occupies. The General Services Administration (GSA) estimates a 

relocation cost of $5 million. Given the nature of its mediation work, with occasional allnight mediations, regular training sessions held in its offices, and the need for access to 

its federal and private-sector customers, the FMCS seeks to be in an accessible location 

in the Washington, D.C. area.

A. Mediation and Conflict Management Services

With its history of more than 65 years of providing mediation, training, and 

facilitation services, the FMCS has more aggregate experience in dispute resolution than 

any other government agency. The FMCS recognizes that demonstrating the economic 

impact of preventing or minimizing the duration of work stoppages is difficult to 

quantify. For this reason, the FMCS uses an independently developed modeling system 

for estimating the impact of its services on the U.S. economy. 

Using this conservative model, the FMCS estimates that its collective bargaining 

mediation services in FY 2013 and FY 2014 saved the economy $750 million in wages 

and profits that otherwise would have been lost to work stoppages. The calculations 

include direct wages saved among the bargaining unit members, retained company 

profits, and wages and profits among ancillary companies and their workers. This model 

also allows the FMCS to estimate the economic cost of work stoppages that occur each 

year. In FY 2014, these stoppages directly affected almost 30,400 workers and indirectly 

affected another 41,000 in ancillary businesses. The FMCS estimates that direct wage 

losses alone from a single large work stoppage would easily exceed FMCS's entire annual 

budget and cause otherwise avoidable losses to the slowly recovering national economy. 

On this precise point, the threatened strike described below in the dispute involving 

longshoreman and all Atlantic and Gulf Coast port operators furnishes a powerful 

example.

Related research also has shown that the timing of FMCS involvement is 

absolutely critical to its ability to prevent work stoppages from occurring in the first place 

and to minimize their duration even when they occur. Over the past 16 years, FMCS 

direct involvement in the bargaining process at any time prior to contract expiration is 

associated with a 33 percent reduction in the duration of any subsequent work stoppage;

or an average reduction in the length of the stoppage of 23 days.
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While the economic model helps demonstrate the direct benefits of mediation, it 

also understates the real value of FMCS services to the U.S. economy. The reason for 

this is that the FMCS economic model can only estimate the benefits of mediation to the 

company and employees taking part in any potential work stoppage, and to ancillary 

companies that provide goods and services directly to that company. The FMCS 

economic model cannot provide accurate cost estimates for companies and employees 

that rely upon the flow of goods or services halted by a work stoppage.

Nevertheless, with such strong evidence demonstrating the positive impact of 

early intervention in collective bargaining disputes, the FMCS uses a variety of early 

intervention programs and initiatives to pursue its mission of collaborative labormanagement conflict resolution. Of particular note is the FMCS emphasis on 

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

sectors and industries in the U.S. economy.

Effectively Managing Bargaining Challenges

Even the best labor-management relationships can be challenged when 

negotiations involve the kinds of multiple and complex issues currently facing most 

bargaining partners. Thus, the work of the FMCS is as essential to the success of the 

U.S. economy as it has ever been. This reality was powerfully demonstrated throughout 

FY 2014 by a number of high profile disputes for which the parties jointly requested that 

the FMCS provide mediation services. In these cases, and many others, mediation played 

a critical role in collective bargaining agreements ultimately being achieved.

• Bay Area Rapid Transit (BART) and the Amalgamated Transit Union 

(ATU) Local 1555 and Service Employees International Union (SEIU) 

Local 1021—FMCS mediation was a key to resolving issues and bringing an 

end to a four-day strike that shut down the Bay Area Rapid Transit system, 

disrupting the daily commute of some 400,000 Bay Area riders in October, 

2013. Disagreement over work rules sparked the work stoppage that shut down 

this important public transportation system and led to a joint request from the 

parties for FMCS assistance. Prior to the lengthy bargaining sessions that 

produced an agreement, senior FMCS mediators led a number of marathon 

negotiations, including one all-night meeting, that kept the system operating for 

commuters. The nightly drama of the negotiation and midnight strike deadlines 

kept tens of thousands of Bay Area commuters in suspense regarding their

morning mode of transportation, and the quick resolution of the dispute 

produced a collective sigh of relief. The resulting tentative agreement 

eventually was ratified by union members after additional disputes over 

technical issues related to the signing of the contract were resolved—again with 

FMCS help.

• Southern California Supermarkets and the United Food and Commercial 

Workers (UFCW)—In early 2014, a group of Southern California's three 

largest supermarket chains and several UFCW locals jointly requested FMCS 

assistance to resolve a longstanding negotiation dispute. The dispute involved 
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Ralph's (Kroger), Albertsons, and Vons (Safeway) supermarkets and UFCW 

locals representing more than 60,000 workers in Southern California. A senior 

FMCS mediation team was brought in and the parties continued to negotiate, 

prompting a final, seven-day push of bargaining meetings that brought 

successful resolution to several months of intense negotiations. With FMCS 

assistance, the parties ratified a new, two-year contract, avoiding a repeat of the 

crippling 141-day strike of 2003, which cost the grocery industry and local 

economy in that region an estimated $2 billion. The parties publicly 

acknowledged the expertise and assistance of the FMCS, crediting it with 

helping negotiators for both sides address complex benefits issues that had 

previously divided them.

• The Professional Referee Organization (PRO) and the Professional Soccer 

Referees Association (PSRA)—Prior to the start of the 2014 Major League 

Soccer (MLS) season, the Professional Referee Organization and the 

Professional Soccer Referees Association representing MLS game officials 

experienced a major dispute as they bargained for a historic first labor contract. 

After months of failed contract negotiations, tensions mounted, each side filed 

unfair labor practice complaints, and a lockout of the referees was instituted 

with the accompanying use of replacement officials at the start of the regular 

season. The FMCS remained in contact with the parties as their negotiations 

continued without resolution, concerned about the economic impact on the 

related industries dependent on MLS games in 18 U.S. cities (Los Angeles has 

two teams) and three Canadian communities that support MLS clubs. Given the 

FMCS's record of success in assisting unions and employers with past lockouts

in professional sports, the parties jointly requested the services of experienced 

FMCS mediators to assist with the stalled negotiations. The FMCS entered the 

negotiations on March 12, after which the two sides engaged in lengthy 

mediation sessions that ultimately resulted in a ratified five-year agreement. In 

a statement announcing the agreement, the PSRA lead negotiator lauded the 

historic first collective bargaining agreement and cited the benefit of FMCS 

assistance at the bargaining table. By the start of the second week of the MLS 

season, established referees returned to officiating and the critical role of the 

FMCS in resolving high-profile, national labor disputes was demonstrated once 

again.

• Appalachian Regional Healthcare and Southern United Nurses/National 

Nurses United—Appalachian Regional Healthcare (ARH) and its two unions, 

representing approximately 700 registered nurses working in Kentucky and 

West Virginia, engaged in several weeks of negotiations without reaching 

agreement on a number of contentious issues, including health care premiums, 

salaries, and mandatory overtime. Southern United Nurses (SUN) and National 

Nurses United (NNU) planned a one-day strike at the Hazard, KY, ARH 

Regional Medical Center and Beckley, WV, ARH Hospital, which was 

especially concerning given that the strike would create a potential lapse in 

patient care and safety at the medical centers. The parties jointly requested to 

continue the negotiations under the auspices of the FMCS, and a top-level 
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mediator assisted the parties in reaching a tentative agreement just prior to the 

midnight expiration of the existing contract. The federal mediator was essential 

in helping the parties navigate through a number of complicated issues, averting 

the potential work stoppage and enabling nurses to return to work the next day 

to provide much-needed care for hospital patients.

• Army Fleet Support (AFS) and International Association of Machinists and 

Aerospace Workers Local 2003—With assistance from a federal mediator, L3 Army Fleet Support (AFS) and members of the International Association of 

Machinists and Aerospace Workers Local 2003, were able to reach a new 

collective bargaining agreement, ending a one-week strike that affected some 

3,000 workers at Fort Rucker. The work stoppage at the base had disrupted 

maintenance and logistics support provided by AFS to the U.S. Army Aviation 

Center of Excellence at Ft. Rucker and the U.S. Air Force. When lengthy 

contract negotiations between the parties had stalled, IAM members began the 

strike that severely limited flight training at the base. After both parties 

requested FMCS help, the resulting five-year labor contract restored the base to 

normal operations.

• The International Longshore and Warehouse Union (ILWU) and the 

Pacific Northwest grain companies—After engaging in difficult and 

contentious bargaining for over two years, including mediation sessions held 

under the auspices of the FMCS, a senior FMCS mediator was able to help the 

parties reach a tentative agreement that was subsequently ratified by the ILWU 

membership. The dispute gained national attention as a result of hostile actions 

on both sides and the likelihood that a prolonged work stoppage could disrupt 

economically important grain export shipments through the affected Pacific 

Northwest terminals. Ratification by union members cleared the way for a 

return to normal operations and a resumption of economically vital grain 

exports at the terminals.

• Metropolitan Opera (Met) and the American Federation of Musicians 

(AFM) Local 802 and the American Guild of Musical Artists (AGMA)—

One of the world's premier cultural institutions, the Metropolitan Opera, and its 

two largest unions turned to the FMCS for mediation as a deadline neared for 

contract negotiations and the possibility of a lockout that could have disrupted 

the Met's artistic season. In response, senior FMCS mediators led all-night 

negotiations that resulted in a highly-lauded tentative agreement, averting a 

possible work stoppage, and bringing the parties together in a cost-saving 

program that featured sacrifices by both labor and management. In the words of 

the New York Times, "The tentative deal pulled the house back from the 

precipice of a lockout that could have been damaging to all sides: It would have 

shuttered the Met, the largest performing arts company in the nation; left its 

artists and artisans without pay; endangered the coming season; and kept 

audiences away at a moment when the company has already been struggling at 

the box office." The FMCS praised the parties for their commitment to the 

collective bargaining process.
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Improving Labor-Management Relationships to Prevent Workplace Disruptions

The FMCS labor relations model encourages a cooperative process instituted well 

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

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

by the FMCS in 2010 and endorsed by employers and unions, highlights the need for an 

ongoing, joint, problem-solving approach to manage the complex problems confronting 

employer-provided health care. It is based upon the concept that the extraordinarily 

difficult issues relating to health care benefits can only be addressed successfully if the 

parties have a relationship and a process for decision-making based on trust, 

transparency, and a commitment to joint problem-solving that commences well in 

advance of contract expiration.

Working together, labor and management partnerships across the country in a 

variety of industries have demonstrated the value of cooperation and joint problemsolving to both employers and workers. In recent years, numerous success stories—many 

involving America’s greatest companies—show the potential for labor and management 

to work together to improve job security, skills, competitiveness, productivity and 

quality. Last year, labor and management leaders from some of these great partnerships 

gathered at the White House to discuss their experiences and “lessons learned.” Hosted 

by the Director of the FMCS and the secretaries of labor and commerce, the White House 

Summit on Labor-Management Partnerships highlighted the value of good collective 

bargaining relationships to companies and government organizations as diverse as Ford 

Motor Company, International Paper, the Federal Aviation Administration, Montgomery 

County Maryland public schools, the Walt Disney Company, ABC, Inc., and the 

Montefiore Health System.

Improving Public and Federal Sector Bargaining Relationships

The FMCS also plays a role in helping to achieve constructive labor-management 

relations throughout the public sector and in federal government. While many public and 

all federal unionized workers cannot be locked out or go on strike, the damage from 

unresolved labor disputes can still be substantial. For example, updating job descriptions, 

work rules, and work processes increases organizational effectiveness and allows more 

cost-efficient delivery of services to the public.

The FMCS’s relationship-building programs are designed to improve labormanagement relationships by helping unions and employers develop collaborative, 

problem-solving approaches and manage their inherent conflict. Effective use of these 

programs better enables the parties to respond jointly to changing business and economic 

conditions. Similarly, the FMCS continues its important work in support of effective 

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

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

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

The President’s order required federal agencies to establish “[l]abor-management forums 

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

quality services to the American people.” In addition, the National Council on Federal 

Labor-Management Relations continues to call upon FMCS instructional design experts 
8

to develop and deliver interactive web-based training tools to improve forum 

performance.

The value of such efforts can be demonstrated through a landmark agreement 

reached between the U.S. Bureau of Prisons (BOP) and Council of Prison Locals (CPL). 

After training from the FMCS, the Bureau of Prisons and Council of Prison Locals signed 

their first master labor-management contract in 16 years. Upon announcing the new 

agreement at a joint press conference, both sides acknowledged that a breakdown in their 

communications and ongoing mistrust between the parties had obstructed the efficient 

functioning of the agency. The parties credited the FMCS relationship-by-objective 

(RBO) training as a key element in improving their relationship at a national level and 

ultimately providing the foundation for their reaching a national agreement. The RBO 

training conducted for BOP marked the launch of an ongoing program conducted by 

FMCS mediators for the agency and its local unions nationwide.

The FMCS also helps build positive labor-management relationships through nontraditional approaches to training and outreach. At the request of the parties, the FMCS 

continues its partnership with the U.S. Department of Education along with the American 

Federation of Teachers; the National Education Association; the Council of the Great 

City Schools; the Council of Chief State School Officers; the National School Boards 

Association and the American Association of School Administrators. This partnership 

program works to advance student achievement through labor-management collaboration 

in K-12 public education. In continuation of the partnership effort, FMCS leaders 

attended the Department of Education’s National Labor-Management Conference held in 

St. Louis, MO. The conference participants expressed strong support for the FMCS 

model of labor-management collaboration as an essential element in achieving important 

labor-management reform in U.S. public schools.

Conflict Management Services to Government

The Administrative Dispute Resolution (ADR) Act of 1996 calls upon the FMCS 

to assist other federal, state, and local agencies in resolving disputes arising under their 

jurisdictions. On a cost-reimbursable basis, the FMCS provides federal agencies, state 

and local governments with a wide variety of professional services, such as mediating 

workplace and employment disputes, mediating disputes involving administrative 

programs, consultation and evaluation in the designing and building of capacity for 

effective conflict management systems, convening and facilitation services associated 

with Negotiated Rulemaking, facilitation services for public policy discussions occurring 

under the Federal Advisory Committee Act, and developing tools for interagency and 

public-private cooperation and collaboration.

Innovative Education and Outreach to Agency Customers

In early 2014 the FMCS successfully launched a new and innovative “Conflict 

Resolution Week” program. This program was created to better inform prospective users 

of FMCS collective bargaining, conflict management, and Alternative Dispute Resolution 

(ADR) services and training. Partnering with conflict resolution experts from the 

National Council on Federal Labor-Management Relations, the U.S. Office of Personnel 
9

Management, the Federal Labor Relations Authority, the Udall Foundation / U.S. 

Environmental Conflict Resolution and experts from the University of Illinois at 

Champaign-Urbana, this series of in-person and web-based training was able to reach

thousands of participants at no cost to them and with minimal cost to FMCS and the 

providers. The first event of its kind for the FMCS, this showcase event highlighted its 

ability to provide effective outreach and training with cost-saving, innovative technology.

The program’s success led to numerous requests for live and web-based training, 

including programs in early dispute resolution and other skills for the FLRA, 

Occupational Safety and Health Administration, and the U.S. Park Service. Similar 

programs are under development for the U.S. Environmental Protection Agency and the 

Social Security Administration. The Conflict Resolution Week concept was replicated in 

October of 2014.

B. Operational Excellence

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

recognized the FMCS as one of the best places to work in the federal government, 

including a second place finish in 2014 among small agencies. The FMCS also was 

designated 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. Despite these accolades, the FMCS continues to mine 

the results of employee surveys to identify areas for improvement. Analysis of previous 

years’ survey results has prompted ongoing initiatives related to improving employee 

performance evaluation systems and encouraging appropriate utilization of telework.

Equally important is the FMCS commitment to using allocated resources as 

efficiently as possible in order to ensure customers and taxpayers receive the highest 

value for the services it provides. Starting in FY 2010, the FMCS implemented a number 

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

which will continue into FY 2016. These initiatives include creating new and updated 

procedures and directives in all significant administrative areas, updating staff position 

descriptions, and expanding the availability of and using information technology systems

to reduce paperwork burdens on the public and FMCS employees.

Following a number of administration initiatives relating to the Freedom of 

Information Act (FOIA) and open government, the FMCS is also committed to 

improving transparency and voluntary disclosure of agency information. Starting in 

FY 2005, the FMCS made two high-value data sets available to the public, data which 

represent the majority of its information collection. In FY 2012 and 2013, the FMCS was 

recognized by the Department of Justice as one of the top federal agencies in how it 

carried out its responsibilities under FOIA. The FMCS will continue these efforts into 

FY 2016 and expand as possible its voluntary disclosures of information in machine 

readable formats.

For FY 2016, the FMCS will continue to collapse and virtualize its information 

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

its progress in meeting administration goals and initiatives relating to telecommuting, 
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cloud computing, continuity of operations, and cyber security. Beginning in FY 2012, 

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

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

In FY 2016, the FMCS will continue this process as well as expand its mobile device 

management systems to stay abreast of technology and cyber-best practices as they 

evolve. Integral with this system will be maintaining scheduled upgrades to technology 

hardware and software assets, and the planned completion of the agency-wide 

distribution of Personal Identity Verification (PIV) cards, as well as the ongoing process 

of keeping the FMCS disaster recovery and devolution sites up to date.

In addition to these initiatives, the FMCS continues to employ a well-developed 

system for evaluating the distribution and effectiveness of its field office staff and offices. 

This evaluation occurs on an annual basis and as retirements and attrition present 

opportunities for non-disruptive realignment of its personnel. With the majority of its 

employees involved in direct program delivery—175 employees (75 percent of its 

workforce) distributed across 67 field stations—the FMCS makes sure to place 

employees in areas where they can provide the greatest benefit. The FMCS will continue 

to use a workload evaluation model to measure the caseloads of its field offices. This 

model compares the work of each of its field stations against FMCS national caseload 

averages. Caseloads are evaluated over a rolling period of four fiscal years to determine 

trends in specific field stations. The results help ensure that decisions to fill vacant 

mediator positions reflect the current and potential demand for FMCS services.

C. Conclusion

The FMCS mission statement reflects the agency’s statutory foundation: "to

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

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

disputes through mediation." As the scope and complexity of collective bargaining issues 

facing labor and management grow, the FMCS will continue to play a critical role in 

averting labor strife that can damage the competitiveness and productivity of U.S. 

companies, the welfare of their employees, and the nation's economic well-being.

Given the anticipated size and number of collective bargaining mediations in 

FY 2016, the complexity of the issues the parties face, the increased demand and 

expectations of the labor-management community for FMCS services that make 

collective bargaining more effective, and the extraordinary expenses for the first 

relocation of the FMCS headquarters in nearly 40 years due to the demolition of the 

building it currently occupies, we urge you to favorably consider this request for 

$48,748,000.
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II. FMCS Organizational Chart

Director

(Acting)

Deputy Director

Mediation Services & 

Field Programs

(SES)

Alternative Dispute 

Resolution & 

International Programs 

Public Affairs EEO General

Counsel

Director of 

Field Operations

(Acting)

Chief Financial Officer

(SES)

Budget & Finance 

Directors of Mediation Services

District 1 (Woodbridge, NJ)

District 2 (Philadelphia, PA)

District 3 (Pittsburgh, PA)

District 4 (Cleveland, OH)

District 5 (Orlando, FL)

District 6 (St. Louis, MO)

District 7 (Seattle, WA)

District 8 (Los Angeles, CA)

District 9 (Chicago, IL)

District 10 (Minneapolis, MN)

Human

Resources 

Administrative

Services

Education & Training,

FMCS Institute

Arbitration & Notice

Processing Services

Deputy Director

National & 

International Programs

(Vacant)

Information

Services

Office of

Ethics

As of Feb. 2, 2015
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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 

Labor-Management Cooperation Act of 1978; and for expenses necessary for the Service 

to carry out the functions vested in it by the Civil Service Reform Act, [$45,666,000] 

$48,748,000, including $400,000 to remain available through September 30, [2016] 2017, 

for activities authorized by the Labor-Management Cooperation Act of 1978: Provided,

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

training activities and other conflict resolution services and technical assistance, 

including those provided to foreign governments and international organizations, and for 

arbitration services shall be credited to and merged with this account, and shall remain 

available until expended: Provided further, That fees for arbitration services shall be 

available only for education, training, and professional development of the agency 

workforce: Provided further, That the Director of the Service is authorized to accept and 

use on behalf of the United States gifts of services and real, personal, or other property in 

the aid of any projects or functions within the Director’s jurisdiction. (Department of 

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

Appropriations Act, 2015)
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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 FMCS was authorized by the Administrative Dispute Resolution Act 

and the Negotiated Rulemaking Act to assist other federal agencies in resolving disputes 

arising out of grants, contracts, licenses, or other agency administrative actions, and to 

assist in the process of negotiated rulemaking. The Administrative Dispute Resolution 

Act of 1996 amended and permanently reenacted these 1990 Acts.

Over the years, Congress and the Executive Branch have authorized FMCS to 

perform a variety of dispute resolution functions as well as to assist in the improvement 

of labor-management relationships. Specific statutory and other authorizations of FMCS 

programs are described below.

I. The Labor-Management Relations Act of 1947 (Public Law 80-101, as 

amended, 29 U.S.C. 158(d), 173 et seq.) directs the FMCS to prevent or 

minimize interruptions to the free flow of commerce growing out of labor 

disputes by helping the parties settle such disputes through mediation. Parties 

are required to notify the FMCS 30 days prior to a contract termination or 

modification date so that mediation services may be proffered.

The Act establishes a special procedure for threatened or actual strikes which, 

in the opinion of the President, imperil the national health or safety. In such 
14

situations, the President may appoint a board of inquiry to ascertain the facts 

with respect to the dispute. After receipt of a report, the President may seek to 

enjoin the strike, and a court may do so if it finds that the threatened or actual 

strike or lockout affects a substantial part or all of an industry and would 

imperil the national health or safety. 29 U.S.C. 176-178.

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

158(d) (4), (4)(A)-(4)(C)) (amending the National Labor Relations Act) 

include special provisions intended to prevent or minimize work stoppages in 

the health care industry. In the case of this industry, FMCS must be notified 

60 days before the contract termination date. A 30-day notice is required in 

initial bargaining situations. If, in the opinion of the Director, a strike is 

threatened which would interrupt the delivery of health care in a locality, the 

Director may appoint a board of inquiry. 29 U.S.C. 183. The board has 15 

days within which to investigate and file its report and recommendations; 

parties must maintain the status quo for 15 days thereafter while further 

negotiations and mediation take place. The parties are required to cooperate in 

any mediation efforts by FMCS.

III. The Civil Service Reform Act of 1978 (Public Law 95-454, 5 U.S.C. 7119(a))

directs the FMCS to provide mediation assistance in disputes arising from 

negotiations between federal agencies and the representatives of their 

employees.

IV. The Postal Accountability and Enhancement Act of 2006 (Public Law 109-

435, as amended, 39 U.S.C. 1207) requires the FMCS to provide mediation 

services and assist in establishing arbitration boards in collective bargaining 

disputes between the Postal Service and the exclusive representatives of its 

employees.

V. An Act to Establish Dispute Resolution Procedures to Settle Disputes 

Between Supervisors and the United States Postal Service, 1980 (Public Law 

96-326, as amended, 39 U.S.C. 1004) directs FMCS, upon the request of 

either the Postal Service or an organization representing its supervisors, to 

convene fact finding panels to recommend supervisory pay and fringe benefit 

policies and to create panels to review the effectiveness of these procedures 

and other employment policies.

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

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

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

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

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

the Energy Labor Management Relations Panel (ELMRP).
15

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

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

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

VIII. The Federal Insecticide, Fungicide and Rodenticide Act of 1978, (Public Law 

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

for the appointment of arbitrators to decide disputes concerning compensation 

for the use or development of pesticide registration data.

IX. The Labor Management Cooperation Act of 1978 (Public Law 101-552, as 

amended by Public Law 95-524, 29 U.S.C. 175a, 186(c)(9)) added Sections

205A and 302(c)(9) to the Labor-Management Relations Act and authorizes 

and directs the FMCS to encourage and support joint labor-management 

activities conducted by plant, area, and industry-wide committees designed to 

improve labor-management relationships, employment security and 

organizational effectiveness. The Act authorizes the Service to provide grant 

funds to assist in the establishment and operation of these labor-management 

committees.

X. The Administrative Dispute Resolution Act of 1996 (Public Law 104-320) 

(ADRA) authorizes and encourages agencies to use various alternative means 

of dispute resolution in the federal administrative process in order to avoid the 

time and expense of litigation. The ADRA amended, permanently enacted,

and incorporated into the Administrative Procedure Act, the Administrative 

Dispute Resolution Act provisions (5 U.S.C. 571 et seq.) and the Negotiated 

Rulemaking Act provisions (5 U.S.C. 561, et seq.) of 1990 legislation. These

provisions and their predecessors suggest that the ADR and regulatorynegotiation “experiments” have become well-accepted processes of federal 

agencies.

Under the ADRA, coverage has been expanded to include additional dispute 

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

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

certain suspensions, removals, examinations, and appointments. The ADRA

encourages the development of guidelines to expedite the selection of neutrals 

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

government.

This legislation also amends the Labor-Management Relations Act of 1947 

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

States Code (29 U.S.C. 173(f)) so that the FMCS may provide all forms of 

ADR assistance to federal agencies. Under this legislation, the FMCS 

continues to assist agencies in negotiated rulemaking processes as well as 

other ADR procedures by providing training, facilitation, mediation, and other 

neutral skills.
16

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

Department of Health and Human Services, implementing its authority under 

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

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

charges filed against any agency receiving federal financial assistance to any 

program or activity.

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

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

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

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

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

personnel management system or the parties’ collective bargaining agreement. 

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

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

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

binding determination. 

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

2003 (Public Law 108-170, 38 U.S.C. 7403 (h)(4)(C)) gives the Secretary of 

Veterans Affairs or the exclusive representative of the affected employees the 

option of requesting the services of the Federal Mediation and Conciliation 

Service to assist the parties in reaching an agreement regarding disputes with 

respect to any system of promotion and advancement proposed by the 

Secretary.

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

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

Executive Order 13591 and 13652 until September 30, 2015, permits the 

FMCS to furnish assistance to the National Council on Federal LaborManagement Relations, including training for executive departments and 

agencies in establishing labor-management forums and pilot projects to 

identify problems and negotiate solutions without regard to whether the 

matters are subject to bargaining (permissive subjects) under the Federal 

Service Labor-Relations Statute.

XV. The Transportation Security Administration Determination, “Transportation 

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

facilitation of collective bargaining negotiations by the Federal Mediation and 

Conciliation Service, or other agreed-upon entity, and requires TSA and the 

unions subject to bargaining to attend training in interest-based negotiations 

conducted by the FMCS.
17

V. Budget Tables and Detailed Financial Requirements

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2014 FY 2015 FY 2016

Total Program

Increase or (Decrease)

Actual Estimated Request 2015 to 2016

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 172 $36,214 185 $36,548 185 $36,618 0 70

2. Arbitration Services...................... 8 655 8 709 8 714 0 5

3. National Office Support and 

Administrative Services.............. 38 7,880 43 8,009 43 11,016 0 3,007

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

Sub-Total Appropriated 218 $45,149 236 $45,666 236 $48,748 0 $3,082
18

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2014 FY 2015 FY 2016

Total Program

Increase or (Decrease)

Actual Estimated Request 2015 to 2016

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

Full-Time 

Equivalent 

Employment

Budget 

Authority

5. Reimbursable programs: ADR 

Services, Employment 

Mediation, International 

Training, and Institute Courses... 8 $1,462 8 $1,815 8 $1,815 0 $0

6. FMCS Internal Training and 

Education.................................... 1 655 1 850 1 850 0 0

Sub-Total Reimbursable 9 $2,117 9 $2,665 9 $2,665 0 0

TOTAL RESOURCES 227 $47,266 245 $48,331 245 $51,413 0 $3,082
19

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET ESTIMATES FISCAL YEAR 2016

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2014 FY 2015 FY 2016

Actual Estimate Request

Personnel Compensation $25,661 $25,923 $26,806

Full-time permanent 25,305 25,540 26,423

- Full-time permanent positions 25,305 25,540 26,423

Other than full-time permanent 61 68 68

- Other than full-time permanent positions 61 68 68

Other Personnel Compensation 295 315 315

- Overtime & holiday pay 11 40 40

- Cash incentive awards 284 275 275

Personnel Benefits $7,570 $7,882 $8,072

Civilian Personnel Benefits 7,570 7,882 8,072

- CSRS Retirement Contribution 156 150 131

- FERS Retirement Contribution 2,652 2,720 2,820

- Federal Retirement Thrift Savings Plan Contribution 1,070 1,199 1,199

- Group life insurance 45 49 49

- Health Insurance Contribution 1,644 1,740 1,785

- OASDI – FERS 1,304 1,343 1,388

- Employee compensation 302 285 304

- Relocation expenses (PCS) 0 0 0
20

BUDGET ESTIMATES FISCAL YEAR 2016

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2014 FY 2015 FY 2016

Actual Estimate Request

Personnel Benefits (continued)

Civilian Personnel Benefits (continued)

- Cost-of-living allowance 15 15 15

- Subsidy for commuting costs 35 26 26

- Medicare contribution 347 355 355

Benefits of Former Personnel $16 $0 $0

- Unemployment compensation 16 0 0

- Voluntary separation incentive 0 0 0

Travel and Transportation of Persons $1,590 $1,663 $1,663

- National office travel 148 108 108

- Official car 4 5 5

- Field office travel 1,438 1,550 1,550

Transportation of Things $0 $0 $0

- Transportation of household goods (PCS) 0 0 0

Rents, Communications, and Utilities $6,319 $7,563 $9,597

Rental Payments to GSA 5,569 6,803 8,837

- Rental payments to GSA 5,569 5,803 5,985

- RWA for design and build out of National Office move 0 1,000 1,383

- Moving costs (cabling, furniture, fixtures, equipment) 0 0 1,469
21

BUDGET ESTIMATES FISCAL YEAR 2016

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2014 FY 2015 FY 2016

Actual Estimate Request

Rents, Communications, and Utilities (continued)

Rental Payments to Others 3 4 4

- Conference room rental 3 4 4

Communications, Utilities and Miscellaneous Charges 747 756 756

- Reproduction equipment rental 0 0 0

- Miscellaneous charges 2 5 5

- Audio-visual equipment rental 0 3 3

- GSA Phones 156 196 196

- FTS Phones 25 28 28

- Commercial Phones 185 180 180

- Data communication services 353 320 320

- Postal services and rentals 26 24 24

Printing and Reproduction $23 $20 $20

- FMCS forms and other printing 23 20 20

Other Contractual Services $2,075 $1,735 $1,710

Advisory and Assistance Service 35 28 28

- Computer assisted legal research 14 13 13

- OPM background investigations 16 5 5

- Office equipment and machinery relocation 5 10 10
22

BUDGET ESTIMATES FISCAL YEAR 2016

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2014 FY 2015 FY 2016

Actual Estimate Request

Other Contractual Services (continued)

Other Services 731 455 455

- Management and professional services 726 450 450

- Official representation fund 5 5 5

Other purchases of goods and services 273 275 275

- Guard security and Federal Protective Services 273 275 275

Operation and Maintenance of Facilities 30 30 30

- Office repairs and alterations 30 30 30

Medical Care 12 12 12

- Medical care 12 12 12

Operation and Maintenance of Equipment 994 935 910

- Maintenance of office equipment 114 100 100

- Maintenance of information technology equipment 255 385 360

- Information technology support services 594 400 400

- Support of payroll/personnel operations 31 50 50

- Household goods storage (PCS) 0 0 0
23

BUDGET ESTIMATES FISCAL YEAR 2016

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2014 FY 2015 FY 2016

Actual Estimate Request

Supplies and Materials $213 $210 $210

- Office supplies and materials 114 150 150

- Information technology supplies and materials 99 60 60

Equipment $1,282 $270 $270

- Furniture and fixtures 365 80 80

- Information technology hardware/software 877 150 150

- Audio-visual equipment 40 40 40

Grants, Subsidies and Contributions $400 $400 $400

Sub-total appropriated $45,149 $45,666 $48,748
24

BUDGET ESTIMATES FISCAL YEAR 2016

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2014 FY 2015 FY 2016

Actual Estimate Request

Reimbursable Programs (non-appropriated) $1,462 $1,815 $1,815

- Compensation 811 960 967

- Benefits 217 306 309

- Travel 209 300 300

- Communications 5 3 3

- Other contractual services 214 236 226

- Supplies and materials 6 10 10

Sub-total of Reimbursable Programs $1,462 $1,815 $1,815

Internal Training and Education (non-appropriated) 655 850 850

- Compensation 132 129 130

- Benefits 43 41 42

- Seminars, workshops, conferences and training 191 291 290

- New mediator costs 107 134 133

- Tuition 80 127 127

- Other contractual services 24 25 25

- Supplies & materials 2 20 20

- Subscriptions 76 83 83

Sub-total of FMCS Training and Education $655 $850 $850

Sub-total of non-appropriated (reimbursable obligations) $2,117 $2,665 $2,665

TOTAL RESOURCES $47,266 $48,331 $51,413
25

FEDERAL MEDIATION AND CONCILIATION SERVICE

Detail of Total Employment – End of Year

2014 2015 2016

Actual Estimated Requested

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

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

Subtotal............................................ 2 5 5

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

GS-14 .............................................................. 136 140 140

GS-13 .............................................................. 32 39 39

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

GS-11 .............................................................. 3 2 2

GS-10 .............................................................. 0 2 2

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

GS-8 ................................................................ 15 15 15

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

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

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

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

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

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

Subtotal ............................................ 225 240 240

Total employment, end of year..................... 227 ** 245 ** 245 **

Full-time equivalent (FTE) usage................. 227 ** 245 ** 245 **

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

Average ES Salary .......................................... $165,565 $167,100 $168,700

Average GS Level ........................................... 12.94 12.86 12.88

Average GS Salary .......................................... $112,000 $112,640 $113,100

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

** 9 FTE funded by reimbursable revenue.
26

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.” Subsequent acts of Congress and presidential 

orders have expanded the FMCS role to provide mediation services to the federal sector 

and alternative dispute resolution (ADR) programs to federal government agencies, as 

well as promote and establish labor-management partnerships.

The FMCS commits to:

• Promoting the development of sound and stable labor-management relationships;

• Preventing or minimizing work stoppages by assisting labor and management to 

settle their disputes through mediation;

• Advocating collective bargaining, mediation, and voluntary arbitration as the 

preferred process for settling disputes between employer and representatives of 

employees;

• Developing the art, science, and practice of conflict resolution; and,

• Fostering the establishment and maintenance of constructive joint processes to 

improve labor-management relationships, employment security, and 

organizational effectiveness.

For more than 65 years, the FMCS has provided services that embrace this 

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

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

relationships have evolved over time, so, too, has the nature of the FMCS work within 

collective bargaining relationships. The FMCS today provides a range of services to 

labor and management, such as relationship-development training and training in interestbased bargaining, to help the parties deal effectively with disputes that may arise between 

them without resorting to work stoppages. The following section describes the FMCS 

comprehensive package of core programs and services.
27

A. Collective Bargaining Mediation

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

of work stoppages to the U.S. economy. The FMCS’s core work is to mediate collective 

bargaining negotiations for initial contract negotiations—which take place between an 

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

negotiations for successor collective bargaining agreements. FMCS provides mediation 

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

and state and local governments.

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

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

offers, and persuade the parties to honestly discuss their differences. In FY 2014, FMCS 

mediators were actively involved in more than 4,000 collective bargaining contract 

negotiations in every major industry throughout the United States.

B. Grievance Mediation

Grievance mediation involves the use of a neutral party to mediate disputes that 

may arise over the terms and conditions of a collective bargaining agreement. FMCS 

mediators provide this service to the private and public sectors with the goal of 

preventing unresolved contract interpretation issues from spilling over into future 

contract negotiations. Lengthening contract terms increase the importance of resolving 

contentious issues arising during the term of a contract. In FY 2014, FMCS mediated 

more than 1,700 grievance mediation cases and helped the parties reach agreement in 

1,308 of these (77 percent).

C. Relationship-Development and Training

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

agreement is another important goal of the FMCS. The FMCS’s relationship-building 

training programs are designed to improve labor-management relationships by helping 

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

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

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

efforts more effective.

In FY 2014, FMCS mediators conducted nearly 1,900 training programs with the 

parties of collective bargaining.

FMCS relationship-development and training programs include:

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

non-adversarial, joint problem-solving approach to negotiation.

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

another, particularly where the relationship has worsened after a contentious 

representation election, initial contract negotiation, or strike.
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.

• Collective Bargaining and Mediation Training: Trains the parties on 

effective negotiation and communication skills.

D. ADR Services

Outside the collective bargaining arena, FMCS provides dispute resolution 

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

basis. The Administrative Dispute Resolution and Negotiated Rulemaking Acts

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

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

and to promote better government decision-making. In this context, the FMCS provided 

management and alternative dispute resolution, including negotiations, mediation, 

convening, facilitation, training, and systems design more than 900 times in FY 2014. 

The FMCS provides these ADR services to federal agencies and to state and local 

governments on a cost-reimbursable basis:

• 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.

• 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 
29

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 under the Federal Advisory Committee Act (FACA). 

This law established a wide array of public-private stakeholder Advisory 

Committees to inform public policy decisions. 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, the FMCS plays an important role in promoting 

collective bargaining and conflict resolution around the world. The FMCS international 

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

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

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

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

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

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

international implications.

The FMCS international training programs are delivered using cost-reimbursable 

funds, largely through interagency acquisition agreements with other government 
30

agencies, such as the Departments of State and Labor and U.S. AID. In FY 2014, FMCS 

mediators delivered more than 330 hours of mediation and industrial relations training 

programs in China, Korea, Nigeria, Morocco, Romania, Honduras, Thailand, Haiti, and 

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

numerous foreign delegations visiting the U.S. and interested in U.S. labor-management 

relations and conflict resolution practices.

F. Arbitration Services

National labor policy favors arbitration over litigation for settling contractual 

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

1,100 independent arbitrators who are qualified to hear and decide disputes over the 

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

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

hear their case and render a decision.

During FY 2014, the Office of Arbitration Services processed more than

13,100 requests for arbitration panels nationwide. Arbitrators on the FMCS roster heard 

and decided more than 2,100 labor arbitration cases.

G. FMCS Institute for Conflict Management

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

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

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

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

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

experienced practitioners who use these skills every day. Federal mediators and privatesector arbitrators comprise the Institute faculty. Courses offered in FY 2014 included 

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

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

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

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

from training participants.

H. Labor-Management Committee Grants

The 1978 Labor-Management Cooperation Act authorizes and directs the FMCS 

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

purpose of improving labor-management relationships, job security and organizational 

effectiveness, enhancing economic development or involving workers in decisions 

affecting their jobs, including improving communication with respect to subjects of 

mutual interest and concern." Congress funds this initiative in the FMCS annual 

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

committees to develop innovative joint approaches to workplace problems.
31

VII. Workload Projections – FY 2015 and FY 2016

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

for FY 2014, and estimated workloads in FY 2015 and 2016 are included in the following 

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

Performance Plan detailed in Section VIII.
32

WORKLOAD OUTPUTS AND PROJECTIONS

FISCAL YEARS 2010 - 2016 

PROGRAM SERVICES

FY 2010

Actual

FY 2011

Actual

FY 2012

Actual

FY 2013

Actual

FY 2014

Actual

FY 2015

Estimated

FY 2016

Estimated

1. COLLECTIVE BARGAINING 

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

Assigned Casesi 14,127 13,712 13,114 12,938 12,054 12,800 12,800

-Private Sector 12,888 12,460 11,814 11,802 10,856 11,587 11,587

-Public Sector (state and municipal) 906 943 943 843 905 912 912

-Federal Sector 333 309 357 293 293 301 301

Mediated Casesii 4,919 4,665 4,528 4,122 4,009 4,387 4,387

-Private Sector 3,632 3,271 3,079 2,826 2,697 3,074 3,074

-Public Sector (state and municipal) 991 1,091 1,111 981 1,020 1,025 1,025

-Federal Sector 296 303 338 315 292 289 289

Closed Cases 12,992 13,776 13,652 12,651 12,032 12,466 12,466

Closed Mediated Cases 4,005 3,815 3,764 3,339 3,299 3,592 3,592

Activity Rateiii 31% 28% 28% 26% 27.4% 28.8% 28.8%

Settled and Closed Mediated Cases 3,428 3,234 3,159 2,807 2,852 3,347 3,347

Percentage of mediated cases settled w/FMCSiv 86% 85% 84% 84% 86.5% 93.2% 93.2%

Activity rate in significant casesv 46% 33% 46% 47% 40.6% 48.0% 48.0%

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

Assigned Cases 2,124 1,968 1,837 1,872 1,762 1,900 1,900

Mediated Cases 2,084 1,905 1,784 1,809 1,704 1,857 1,857

-Private Sector 1,708 1,513 1,372 1,398 1,330 1,451 1,451

-Public Sector (state and municipal) 239 261 264 267 256 280 280

-Federal Sector 137 131 148 144 118 135 135

Settled GM Cases 1,532 1,428 1,367 1,383 1,308 1,427 1,427

Percentage of cases settled w/ FMCSvi 74% 75% 77% 76% 76.8% 76.8% 76.8%
33

PROGRAM SERVICES

FY 2010

Actual

FY 2011

Actual

FY 2012

Actual

FY 2013

Actual

FY 2014

Actual

FY 2015

Estimated

FY 2016

Estimated

3. RELATIONSHIP-DEVELOPMENT AND 

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

Number of training programs provided 2,200 2,301 2,128 2,027 1,884 2,200 2,200

-Private Sector 1,471 1,267 1,262 1,174 1,111 1,314 1,314

-Public Sector (state and municipal) 433 493 463 533 436 545 545

-Federal Sector 296 541 403 320 337 341 341

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

Mediated Cases 1,392 1,330 1,110 1,118 910 1,100 1,100

-Federal Sector 1,387 1,323 1,090 1,089 884 1,081 1,081

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

-Private 3 4 15 28 20 14 14

Settled ADR Cases 675 641 537 488 410 518 518

Percent of ADR cases settled w/ FMCSvii 48% 48% 48% 44% 45.1% 47% 47%

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

Outreach casesviii 3,240 3,190 3,019 2,911 2,710 3,080 3,080

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

Number of panels issued 16,486 13,500 13,538 13,361 13,179 14,000 14,000

Number of arbitrators appointed 6,870 5,575 6,129 6,020 5,836 5,693 5,693

Average number of days for arbitrator 

appointment 2.1 3.9 2.0 2.9 4.1 2.0 2.0

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

Number of courses provided 12 5 8 10 8 10 10

Number of participants 207 93 179 188 114 200 200
34

VIII. Annual Performance Plan

Performance expectations for each service area are guided by the FMCS current 

five-year strategic plan. For each strategic goal, the FMCS has identified a number of 

objectives, key implementation strategies and actions, and measures for tracking its 

performance toward achieving each goal. The following section details each goal and 

presents a matrix identifying the programs impacted by them, performance objectives and 

accomplishments for FY 2014, and performance goals for FY 2015 and FY 2016.
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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.

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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.
38

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.

40

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 conflict management 

services and regulatory/enforcement services that the FMCS takes and achieving an 

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

to litigation and promote better government decision making.

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Endnotes

 

i

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

employer or labor organization provide notice to the FMCS 30 days prior to contract expiration. Not 

all cases providing notices are assigned. Actual FY 2014 FMCS case intake exceeded 20,500. 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.