FEDERAL MEDIATION AND CONCILIATION SERVICE 

 FISCAL YEAR 2011 

Congressional Budget Submission 
 FEDERAL MEDIATION AND CONCILIATION SERVICE 

 FISCAL YEAR 2011 

Congressional Budget Submission 

Table of Contents 

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

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

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

C. Conclusion ........................................................................................................ 6

II. FMCS Organizational Chart ................................................................................... 7

III. Appropriation Language ......................................................................................... 8

IV. Statutory and Other Legal Authority ...................................................................... 9

V. Budget Tables and Detailed Financial Requirements ........................................... 13

VI. Mission and Program Structure ............................................................................ 22

A. Collective Bargaining Mediation .................................................................... 23

B. Grievance Mediation ....................................................................................... 23

C. Relationship-Development and Training ........................................................ 23

D. Outreach .......................................................................................................... 24

E. Employment Mediation .................................................................................. 24

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

G. Arbitration Services ........................................................................................ 25

H. Grants Program ............................................................................................... 25

I. FMCS Institute for Conflict Management ...................................................... 26

VII. Workload Projections – FY 2010 and FY 2011.................................................... 27

VIII. Program Objectives – FY 2010 and FY 2011 ....................................................... 30
Fiscal Year 2011 Budget Estimates 

I. Executive Summary 

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

delivered neutral and confidential conflict resolution assistance to the nation’s unionized 

workplaces. The core mission of FMCS is to help employers and unions avoid costly 

work stoppages and thus minimize their potentially disruptive effects on interstate 

commerce. 

As labor-management relationships have evolved in response to changes in the 

national and global economic environment, so, too, have the FMCS strategies for helping 

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

the FMCS in formulating its strategic approach to mediation is the largely voluntary 

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

could benefit from mediation or some other intervention, the FMCS cannot force the 

parties to accept its assistance or impose any solutions upon them. 

The devastating impact of the current recession will certainly affect labormanagement relations for years to come as unions and employers seek to regain lost 

ground. Concessions sought and granted by the parties to preserve jobs will be back “on 

the table” when more prosperous times return. For employers and unions, health care 

will continue to be primarily employment-based, regardless of the outcome of the health 

care reform debate. Pension fund stability will continue to create tension at bargaining 

tables across the nation. Federal, state and local government deficits will strain collective 

bargaining relationships as government adjusts to lower revenues while the demand for 

government services stays high. The influx of stimulus money for public works projects, 

“green jobs,” and technological innovation bring additional factors into an already 

volatile collective bargaining environment. During the economic recovery, the FMCS 

must be prepared to assist labor and management in addressing these complex challenges. 

Building and maintaining constructive labor-management relationships requires 

FMCS field mediators to be skilled facilitators, instructors, and problem-solvers to both 

the public and private sectors. Parties rely upon a mediator’s expertise and experience to 

guide them through intricate and time-sensitive issues. Through their interaction with the 

parties, FMCS mediators can help them avoid a work stoppage and also promote 

practices and provide solutions that improve labor-management harmony in the period 

between contract negotiations. The FMCS also provides parties to a collective 

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bargaining agreement with access to its arbitrator referral service. The goal of this 

service is to help parties settle individual disputes over the interpretation or application of 

their collective bargaining agreements without resorting to the time-consuming and costly 

court system. The FMCS 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 FMCS provides a significant economic 

benefit to American businesses, their unionized employees, and the American taxpayer. 

A. Achievements 

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

facilitation services, the FMCS has more aggregate experience in alternative dispute 

resolution than any other government agency. The FMCS is successful when work 

stoppages are minimized in duration or do not occur and when collective bargaining 

relationships do not lead to unmanaged conflict in the workplace. Because these 

outcomes are so difficult to quantify, the FMCS measures its positive impact through a 

specially created economic model. The FMCS also evaluates its organizational 

effectiveness using a number of other tools. The FMCS continually reaches out to labor 

and management both domestically and abroad for constructive dialogue on labor 

relations and best practices and convenes more than 80 conferences and workshops each 

year. Through its training and international programs, the FMCS encourages and 

promotes positive labor-management relationships. 

Positive Economic Impact 

In FY 2005, the FMCS entered into an agreement with the Employment Policy 

Foundation (EPF), a nonprofit, nonpartisan public policy research foundation that 

focused on workplace trends, to develop a model that was capable of estimating the 

impact of the FMCS’s services. Using EPF’s conservative modeling techniques, the 

FMCS estimates that work stoppages in FY 2007 and FY 2008 caused employees and 

businesses to lose an estimated $1.3 billion in wages and profits. Disruption to ancillary 

businesses is estimated to have cost an additional $1.5 billion during this period. 

The EPF’s research also showed that early FMCS involvement is critical when 

considering the duration of work stoppages. Over the past 10 years, FMCS involvement 

at any time prior to contract expiration is associated with a 22 percent reduction in the 

duration of any subsequent work stoppage. In FY 2008, however, there were numerous 

one-day work stoppages in negotiations where the FMCS was not involved until after the 

contract had expired. In addition, there were a number of cases involving FMCS 

mediators prior to contract expiration dates that still resulted in long work stoppages. 

The combination of these two factors inverted the historically observed relationship 

between work stoppages and early intervention. 

While work stoppage data help demonstrate the direct economic benefits of 

mediation, such data dramatically understate the real value of FMCS services to the U.S. 

economy. The aggregate value of these services is hard to measure in precise economic 

2
terms because of the difficulty in modeling the negative effects of the work stoppages 

that are avoided through mediation. 

Relationship Building 

The FMCS seeks to strengthen labor-management relationships by providing 

preventative mediation services. These programs help labor and management develop 

collaborative, problem-solving approaches for joint responses to changes in business and 

economic conditions. These training programs not only improve the quality of the 

parties’ relationships but also make future mediation efforts more effective. In FY 2009, 

FMCS mediators facilitated more than 2,300 training cases. These cases involved 

activities such as setting up labor-management committees, conducting on-site 

relationship evaluations, and helping labor and management develop their collaborative, 

problem-solving skills. We will continue to expand our outreach program so that 

employers and unions alike become aware of the services we provide. 

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

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

efforts help to level the economic playing field for U.S. companies and workers by 

strengthening the rule of law and workers' rights in developing countries. Equally 

important, the FMCS helps establish and encourage development of the labor relations 

institutions that are essential to the smooth functioning of free market economies. 

Organizational Efficiency 

The FMCS is committed to using allocated resources efficiently. In FY 2009, for 

the fifth consecutive year, the FMCS used a performance matrix to measure the caseload 

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

stations against the FMCS’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 decisions to fill vacant mediator and 

support positions reflect the current and potential demand for the FMCS’s services. In 

fact, the majority of the FMCS’s employees are involved in direct program delivery, with 

179 employees (77 percent of its workforce) distributed across 67 field stations. 

B. Future Challenges 

Many different external factors influence the ability of the FMCS to deliver its 

services as well as the types of dispute resolution services that are required. For the 

upcoming year and beyond, the FMCS 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 2010, the FMCS will monitor more than 21,000 collective bargaining 

agreements, many of which are in key private sector industries, particularly the 

telecommunications, entertainment, aerospace, and construction industries. These and 

other expiring contracts account for at least 28 percent of the private sector unionized 

3
workforce, or 2.3 million workers. Looking ahead to FY 2011, the FMCS is aware of 

over 10,000 expiring contracts that cover another 28 percent of the private sector 

unionized workforce, or 2.3 million workers, and expects to receive between 21,000 and 

22,000 notices. The FMCS 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 disruptions to the national economy. 

Economic Recession 

A notable impact of the current recession on the FMCS is the potential for 

increased labor strife once the economy starts to emerge from the recession. In the 1990 

and 2001 recessions, the FMCS noticed a reduction in the duration of labor contracts 

negotiated during the recessionary period. Evidence of an even more dramatic drop is 

emerging in the current recession—from an average contract duration of 36.6 months in 

2008 to 33 months in 2009. 

Effect of Business Cycle

Sources: FMCS; Department of Commerce; National Bureau of Economic Research

Contract Durations and GDP Growth, FY 1985- 2009

24

27

30

33

36

39

1985 1989 1993 1997 2001 2005 2009

0

1

2

3

4

5

Average Contract Duration

GDP Growth

Months

% GDP Growth ($2005)

Recessions

This sharp drop in contract durations has two implications for labor-management 

relations that concern the FMCS. The first is that shorter duration contracts mean that 

negotiations will occur with greater frequency, increase the number of notices that the 

FMCS receives each year, and increase mediator workloads. The second is that many 

workers have made wage and benefit concessions to help employers and their members 

survive the recession and will likely seek to reclaim their concessions once the economy 

recovers. This may lead to more contentious labor-management relationships and thus 

increase the likelihood of work stoppages in the future. 

One strategy that the FMCS is pursuing to strengthen labor-management 

relationships during the current recession is to increase the number of grants that it makes 

to assist in the establishment of joint labor-management committees in unionized 

workplaces. In FY 2009, despite a shortened time period for completion of submissions, 

the FMCS received a near-record 51 grant proposals and was able to disburse $650,000 

in awards. The broad objectives of these grants are to: 1) improve communications and 

working relationships between labor and management; 2) provide employers and 

employees with training to achieve organizational effectiveness through innovative joint 

4
approaches; 3) assist employees and employers in solving problems of mutual concern; 4) 

explore ways to eliminate potential problems affecting economic development in the 

area; and, 5) enhance employees’ involvement in the decision-making process. 

Multiple factors associated with the recession will require increased emphasis in 

this program area. Stimulus spending focusing on public works projects using Project 

Labor Agreements, technology transfer to “green jobs,” and increased financial 

constraints at the state and local government level will increase the need for creative and 

innovative approaches by unions and employers. Health care reform, the financial crisis 

impacting employer-based pension funds, the resentment associated with concessions 

extracted during collective bargaining, and increased polarization associated with 

proposed changes in U.S. labor law are all factors that could increase labor-management 

conflict. Funding joint initiatives to help manage these elements will be important to 

labor-management relations as the economy emerges from the recession. With more than 

28 years experience supporting joint labor-management initiatives, the FMCS is prepared 

to assist unions and employers with these recession-related challenges. 

Skills Maintenance 

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

ensuring that FMCS mediators are well prepared to assist with any and all workplace 

issues that they might encounter. Training programs in FY 2011 will continue to focus 

on 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. 

Improving Employee Wellness 

The FMCS has over 77 percent of its workforce dispersed among 67 field stations 

across the United States, with the majority of these field offices staffed by one-to-three 

people. This structure challenges the ability of the FMCS to develop and implement a 

single program that will accommodate the interests of centralized office staff and single 

mediators working from a home office. In order to implement a program that is practical, 

cost-effective, and most likely to be successful, the FMCS will survey the interests of its 

workforce in FY 2010 and look to best practices in designing a wellness program for the 

whole agency. The FMCS will track and report its activities and progress in this 

initiative using OPM’s online WellCheck program. 

Improving Employee Satisfaction 

The FMCS uses information from the Federal Human Capital Survey to monitor 

employee satisfaction and identify areas needing improvement. As directed by OPM, the 

FMCS uses the following to develop its plans: 

1. The ten items which our employees ranked lowest in favorable responses, even 

though the rankings were above the government-wide scores; 

2. Any items for which the scores declined from 2006 to 2008; and 

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3. The item for which FMCS scored lower than the government-wide average. 

Although not included in the public scoring due to untimely receipt of data, the 

FMCS 2008 survey data were scored by the Partnership for Public Service using the same 

weighting and survey questions as applied to the rest of the federal service in calculating 

the “Best Places to Work” index. The FMCS overall index score exceeded the 

government-wide average by nearly 19 points and resulted in a higher “Best Places to 

Work” index score than the top-rated, small and large government agencies. In all but 

one of the measured categories, FMCS scores exceeded the government-wide average. 

This builds on prior years’ public ranking as “the best place to work in the federal 

government.” However, there are areas in which improvement is needed to maintain the 

FMCS high employee satisfaction scores. The FMCS contracted with OPM to conduct 

the annual employee survey in October 2009. Results of this survey should help 

determine whether downward trends are continuing or represented short-term 

fluctuations. 

C. Conclusion 

The FMCS 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, 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 our nation's economic well being. Given the anticipated size and 

number of collective bargaining mediations in FY 2011, the complexity of the issues the 

parties face, and the increased demand and expectations of the labor-management 

community for FMCS services that make collective bargaining more effective, we urge 

you to favorably consider this respectful request for $48,025,000. 
II. FMCS Organizational Chart 

Director

(PAS)

Deputy Director for

Field Programs

(SES)

ADR/ International/

FMCS Institute

General Public Affairs

Counsel

Director of 

Field Operations

(SES)

Chief Financial Off

(SES)

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 (Kansas City, MO)District 7 (Seattle, WA)District 8 (Los Angeles, CA)District 9 (Chicago, IL)District 10 (Minneapolis, MN)

Education & Training

Arbitration & Notice

Processing Services

Deputy Director for

National & International 

Programs

(SES non-career)

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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, [$46,652,000]: 

$48,025,000, including $750,000 to remain available through September 30, 2012, 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. (Departments of 

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

Act, 2010.) 

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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. 

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. 

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. 

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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 

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 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. 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 inter10
agency 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, (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. 

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. 

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. 

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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, as 

amended, 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 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 using the services of the Federal Mediation and Conciliation Service 

to assist the parties in reaching an agreement regarding disagreements with 

respect to any systems of promotion and advancement proposed by the 

Secretary. 
V. Budget Tables and Detailed Financial Requirements 

FEDERAL MEDIATION AND CONCILIATION SERVICE 

BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2009 FY 2010 FY 2011 

Actual Estimated Request 

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 184 $34,975 195 $36,305 195 $37,162 

2. Arbitration Services ................... 8 683 8 696 8 710 

3. National Office Support and 

Administrative Services ............. 46 9,168 49 9,302 49 9,403 

4. Labor-Management Grants ........ 0 650 0 349 0 750 

 Sub-Total Appropriated 238 $45,476 252 $46,652 252 $48,025 

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BUDGET AND STAFFING BY ACTIVITY

(in thousands of dollars)

FY 2009 FY 2010 FY 2011 

Actual Estimated Request 

Full-Time 

Equivalent 

Employment 

Budget 

Authority 

Full-Time 

Equivalent 

Employment 

Budget 

Authority 

Full-Time 

Equivalent 

Employment 

Budget 

Authority 

5. Reimbursable programs: 

Employment Mediation, International Training and Institute Courses ....................... 8 $1,240 8 $1,678 8 $1,696 

6. FMCS Internal Training and 

Education .................................. 0 562 0 750 0 750 

 Sub-Total Reimbursable 8 $1,802 8 $2,428 8 $2,446 

TOTAL RESOURCES 246 $47,278 260 $49,080 260 $50,471 

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FEDERAL MEDIATION AND CONCILIATION SERVICE 

BUDGET ESTIMATES FISCAL YEAR 2011

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2008 FY 2009 FY 2010 

 Actual Actual Estimate

Personnel Compensation $25,648 $25,935 $27,98

 Full-time permanent 24,988 25,537 27,47

 Full-time permanent positions 24,988 25,537 27,47

 Other than full-time permanent 307 70 18

 Other than full-time permanent positions 307 70 18

 Other Personnel Compensation 353 328 32

 Overtime & holiday pay 22 28 2

 Cash incentive awards 331 300 30

Personnel Benefits $7,131 $7,287 $7,85

 Civilian Personnel Benefits 7,131 7,287 7,85

 CSRS Retirement Contribution 340 326 31

 FERS Retirement Contribution 2,259 2,337 2,54

 Federal Retirement Thrift Savings Plan Contribution 945 1,000 1,09

 Group life insurance 47 48 4 Health Insurance Contribution 1,429 1,490 1,62

 OASDI – FERS 1,173 1,181 1,33 Employee compensation 502 449 42

 Relocation expenses (PCS) 00

15 
BUDGET ESTIMATES FISCAL YEAR 2011

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2008 FY 2009 FY 2010  Actual Actual Estimate

Personnel Benefits (continued)

 Civilian Personnel Benefits (continued)  Cost-of-living allowance 48 48 4

 Subsidy for commuting costs 29 40 4

 Medicare contribution 359 368 39

Benefits of Former Personnel $7 $2 $

 Unemployment compensation 7 2 

 Voluntary separation incentive 0 0 

Travel and Transportation of Persons $1,672 $1,740 $1,84

 National office travel 92 130 13 Official car 15 15 1

 Field office travel 1,565 1,595 1,70

Transportation of Things $0 $0 $

 Transportation of household goods (PCS) 0 0 

Rents, Communications, and Utilities 6,030 6,592 6,75

 Rental Payments to GSA 5,164 5,641 5,80

 Rental payments to GSA 5,164 5,641 5,80

16 
BUDGET ESTIMATES FISCAL YEAR 2011

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2008 FY 2009 FY 2010  Actual Actual Estimate

Rents, Communications, and Utilities (continued)

 Rental Payments to Others 2 5 

 Conference room rental 2 5 

 Communications, Utilities and Miscellaneous Charges 864 946 94

 Reproduction equipment rental 17 25 2

 Miscellaneous charges 5 10 1

 Audio-visual equipment rental 1 2 

 GSA Phones 244 250 25 FTS Phones 20 20 2

 Commercial Phones 271 280 28 Data communication services 184 220 22

 Postal services and rentals 122 139 13Printing and Reproduction $57 $60 $6

 FMCS forms and other printing 57 60 6

Other Contractual Services $1,354 $1,838 $1,08

 Advisory and Assistance Service 18 21 2 Computer assisted legal research 3 5 

 OPM background investigations 6 6 

 Office equipment and machinery relocation 9 10 1

17 
BUDGET ESTIMATES FISCAL YEAR 2011

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2008 FY 2009 FY 2010  Actual Actual Estimate

Other Contractual Services (continued)

 Other Services 163 245 24

 Management and professional services 160 240 24

 Official representation fund 3 5 

 Other purchases of goods and services 

from Government Accounts 151 161 17

 Guard security services 151 161 17

 Operation and Maintenance of Facilities 93 50 5

 Office repairs and alterations 93 50 5

 Medical Care 27 33 3 Medical care 27 33 3

 Operation and Maintenance of Equipment 902 1,328 56 Maintenance of office equipment 123 128 12

 Maintenance of information technology equipment 268 300 13 Information Technology Support Services 480 865 27

 Support of payroll/personnel operations 31 35 3

 Household goods storage (PCS) 0 0 

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BUDGET ESTIMATES FISCAL YEAR 2011

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2008 FY 2009 FY 2010  Actual Actual Estimate

Supplies and Materials $374 $460 $32

 Office supplies and materials 198 200 20

 Information technology supplies and materials 176 260 12

Equipment $762 $912 $40

 Furniture and fixtures 156 100 8

 Information technology Hardware/Software 518 680 30

 Audio-visual equipment 88 132 2

Grants, Subsidies and Contributions $0 $650 $34

 Sub total appropriated $43,035 $45,476 $46,65

19 
20 

BUDGET ESTIMATES FISCAL YEAR 2011

FINANCIAL REQUIREMENTS

(in thousands of dollars)

 FY 2008 FY 2009 FY 2010  Actual Actual Estimate

Reimbursable Programs (non-appropriated) $1,540 $1,240 $1,67

 Compensation 506 765 88

 Benefits 130 200 22 Travel 251 212 20 Communications 3 3 

 Other contractual services 636 50 35

 Supplies and materials 14 10 1

 Sub total of Reimbursable Programs $1,540 $1,240 $1,67

FMCS Internal Training and Education (nonappropriated) 617 $562 $75

 Seminars, Workshops, Conferences and Training 378 250 32

 New mediator costs 47 60 8

 Tuition 71 92 9

 Other contractual services 43 80 17

 Supplies & materials 10 20 2

 Subscriptions & training materials 68 60 6

 Sub total of FMCS Training and Education $617 $562 $75

 Sub total of non-appropriated (reimbursable obligations) $2,157 $1,802 $2,42

TOTAL RESOURCES $45,192 $47,278 $49,08
FEDERAL MEDIATION AND CONCILIATION SERVICE 

Detail of Total Employment – End of Year 

2009 2010 2011 

Actual Estimated Request 

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

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

 Subtotal ............................................ 3 5 5

GS-15 .............................................................. 20 21 21

GS-14 .............................................................. 160 166 167

GS-13 .............................................................. 16 19 21

GS-12 .............................................................. 7 7 5

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

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

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

GS-8 ................................................................ 17 17 17

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

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

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

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

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

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

 Subtotal ............................................ 246 256 256

Total employment, end of year ..................... 249 * 261 * 261 * 

Full-time equivalent (FTE) usage ................. 246 * 260 * 260 * 

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

Average ES Salary .......................................... $160,600 $164,000 $167,000

Average GS Level ........................................... 12.89 12.93 12.95

Average GS Salary .......................................... $106,670 $108,496 $114,143

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

* 8 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.”i

 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 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 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. 

22
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 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. 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 2009, FMCS 

mediators were actively involved in nearly 4,800 collective bargaining contract 

negotiations in every major industry throughout the United States. 

B. Grievance Mediation 

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

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

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

encouraging resolution in advancement of cooperative labor-management partnerships 

and preventing unresolved contract interpretation issues from spilling over into future 

contract negotiations. The potential for this happening will be greater as the nation 

begins to emerge from the current recession. In FY 2009, FMCS mediated 2,004 

grievance mediation cases and helped the parties reach agreement in 1,479 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 FMCS. The FMCS 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. In FY 2009, FMCS mediators conducted over 2,300 

training programs to the parties of collective bargaining. 

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. 

• 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. 

23
• 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. 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 

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 FMCS also 

provides employment mediation to the private sector to resolve workplace disputes 

falling outside of the traditional collective bargaining context, i.e., equal employment 

opportunity disputes. In FY 2009, FMCS mediated 1,362 employment cases. 

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 international 

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

24
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. 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 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. Besides 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 

international program operations are funded through reimbursables and 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 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 2009, the Office of Arbitration Services processed nearly 

16,700 requests for arbitration panels nationwide. Arbitrators on the FMCS roster heard 

and decided more than 2,100 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 

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.”ii This is done primarily through the formation of industry, area, and company 

labor-management committees in the public and private sectors, excluding the federal 

government. Through federal assistance, parties can develop better vehicles for 

discussing and resolving their problems and exploring ways to improve productivity and 

employment security, achieve economies and avert serious work stoppages. The FMCS 

25
awards grant funds, monitors their use and measures their effectiveness. In awarding 

grants, the FMCS looks for novel approaches to collaborative labor-management 

relations and problem solving. In fiscal year 2009, the FMCS received over 50 grant 

applications and awarded 10 grants to highly rated labor management proposals. 

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. 

26
27

VII. Workload Projections – FY 2010 and FY 2011 

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

accomplishments for FY 2009, and estimated workload in FY 2010 and 2011 are 

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

FMCS’s strategic program objectives detailed in Section VIII. 
WORKLOAD OUTPUTS AND PROJECTIONS 

FISCAL YEARS 2010 - 2011 

PROGRAM SERVICES 

FY 2006 

Actual 

FY 2007 

Actual

FY 2008 

Actual 

FY 2009 

Estimated 

FY 2009 

Actual 

F

E

1. COLLECTIVE BARGAINING 

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

 Assigned Casesiii 15,072 14,663 14,308 14,500 13,887 

 - Private Sector 13,539 13,245 12,914 13,108 12,425 

 - Public Sector (state and municipal) 1,219 1,107 1,083 1,087 1,138 

 - Federal Sector 314 311 311 305 324 

 Mediated Casesiv 5,484 5,329 4,836 5,149 4,767 

 - Private Sector 3,874 3,907 3,437 3,724 3,320 

 - Public Sector (state and municipal) 1,319 1,145 1,145 1,159 1,155 

 - Federal Sector 291 277 254 266 292 

 Closed Cases 15,664 14,478 13,480 13,714 13,308 

 Closed Mediated Cases 4,486 4,426 3,914 4,172 3,958 

 Activity Ratev 29% 31% 29% 30% 29.7% 

 Settled and Closed Mediated Cases 3,864 3,818 3,396 3,611 3,395 

 Percentage of mediated cases settled w/FMCSvi 86% 86% 87% 87% 86% 

 Activity rate in significant casesvii 45% 51% 38% 50% 37% 

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

 Assigned Cases 1,632 1,768 1,749 1,700 2,027 

 Mediated Cases 1,625 1,753 1,728 1,669 2,004 

 - Private Sector 1,219 1,282 1,296 1,271 1,570 

 - Public Sector (state and municipal) 270 316 314 293 313  - Federal Sector 136 155 118 135 121  Settled GM Cases 1,219 1,254 1,299 1,260 1,479 

 Percentage of cases settled through FMCSviii 75% 74% 75% 76% 74% 

28
29

PROGRAM SERVICES 

FY 2006 

Actual 

FY 2007 

Actual

FY 2008 

Actual 

FY 2009 

Estimated 

FY 2009 

Actual 

F

E

3. RELATIONSHIP-DEVELOPMENT AND 

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

 Number of training programs provided 2,445 2,548 2,356 2,500 2,327  - Private Sector 1,552 1,591 1,390 1,537 1,400  - Public Sector (state and municipal) 730 730 712 767 682 

 - Federal Sector 163 227 254 196 245 

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

 Mediated Cases 1,022 1,060 1,220 1,200 1,362  - Federal Sector 993 1,038 1,205 1,175 1,336  - Public Sector (state and municipal) 13 5 11 11 9 

 - Private 16 17 4 14 17 

 Settled EM Cases 523 532 576 590 638 

 Percent of EM cases settled through FMCSix 51% 50% 47% 49 % 47% 

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

 Outreach casesx 3,859 3,847 3,347 3,472 3,622 

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

 Number of panels issued 16,854 16,264 15,717 16,000 16,692 

 Number of arbitrators appointed 6,860 6,485 6,568 6,500 6,496  Average number of days for arbitrator 

appointment 

1.1 3.2 3.24 2 2.72 

 Number of complaints regarding overdue awards 

9 9 10 15 8 

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

 Number of courses provided 7 9 5 5 7 

 Number of participants 172 219 150 150 187 
VIII. Program Objectives – FY 2010 and FY 2011 

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

strategic plan. This plan was last updated in 2008. For each strategic goal, the FMCS 

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 2009, and performance goals 

for FY 2010 and FY 2011. 

In FY 2009, the FMCS initiated a new project to measure its impact in building 

problem-solving relationships. Data for this project are currently being collected and 

prepared for analysis, with initial results anticipated in the FY 2012 budget request. 

30
Strategic Goal #1: Mediation

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

collective bargaining negotiations. 

Objective: 

• Use of FMCS collective bargaining mediation by labor and management leaders. 

Action: 

• Early intervention activities, particularly in initial contracts, the health care 

industry, and large and high-impact bargaining units. 

Strategies: 

• Encourage labor and management leaders to employ mediation in their contract 

negotiations. 

• 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 FMCS’s mission and 

its most publicly visible work. In 2005, 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 in those cases that have the potential for permanent shutdowns or disruptions to 

the community, workforce, 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. 

31
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

2006 2007 2008 2009 2010* 2011*

Actual Performance

Linear Trend

2006 2007 2008 2009 2010* 2011*

Actual .......... 28.6 30.6 29.1 29.7 30.0 30.0 

Target .......... 30.0 30.0 30.0 30.0 30.0 30.0

* 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 

40

42

44

46

48

50

2006 2007 2008 2009 2010* 2011*

Actual Performance

Linear Trend

2006 2007 2008 2009 2010* 2011*

Actual .......... 44.2 43.7 44.7 46.9 45.0 45.0 

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

* Estimated 

32
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. Also, 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. 

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 FMCS is committed to delivering to its customers the best possible 

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

FMCS is constantly seeking to improve its core curriculum. 

33
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 to resolve disputes before they begin to negatively affect the collective 

bargaining relationship. 

Increasing the FMCS’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 FMCS mediators are able to facilitate 

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

FMCS improve the quality of the service. 

34
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

2006 2007 2008 2009 2010* 2011*

Actual Performance

Linear Trend

2006 2007 2008 2009 2010* 2011*

Actual .......... 75.0 71.5 75.2 73.8 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

2006 2007 2008 2009 2010* 2011*

Actual Performance

Linear Trend

2006 2007 2008 2009 2010* 2011*

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

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

* Estimated 

35
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 FMCS’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 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, may take several 

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

FMCS 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 FMCS 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. 

36
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

2006 2007 2008 2009 2010* 2011*

Actual Performance

Linear Trend

2006 2007 2008 2009 2010* 2011*

Actual .......... 51.2 50.2 47.2 46.8 50.0 50.0 

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

* Estimated 

37
38

 

Endnotes

i

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

iii 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 2009 FMCS case intake exceeded 21,000. 

iv Mediated cases (formerly called “active” cases) represent the number of cases in the FY where mediators 

have become active in the negotiations. v

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

total closed assignments. 

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

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

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

the number of closed GM assignments. ix Defined as the number of mediated employment cases settled divided by the number of mediated cases 

closed x

 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.