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2012 
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Message from the Director 

In my tenure as Director, FY 2012 stands out not only for the major challenges it presented to 

the FMCS in helping to resolve a series of key labor disputes across America, but also for the 

opportunities it provided to the FMCS to advance the institution of collective bargaining. 

Through much of FY 2012, despite gradually improving economic conditions, an atmosphere 

of uncertainty clouded collective bargaining negotiations nationwide. Unemployment 

hovered at relatively high levels, with many private employers delaying their hiring decisions 

while they waited for better signs of an upward trend. Many employers still cautiously clung 

to strategies of cost reduction that included shrinking workforces and benefits. For 

employees, job security, pensions and health care benefits remained key issues at bargaining 

tables. And, as the economic picture gradually brightened through the year, the need to regain 

wages for workers that had been lost in recent hard times became more urgent. Adding to this 

already complex picture, in bargaining over health care benefits, labor and management were 

confronted with the additional contractual and plan changes required by the Patient Protection 

and Affordable Care Act of 2010 (the “Affordable Care Act”) scheduled to go into effect in 

2014. 

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

the FMCS continued to provide its skilled, experienced mediators on a pro-active, outreach 

basis. The work of the FMCS is as essential to the success of the U.S. economy as it has ever 

been. That reality was powerfully demonstrated throughout the fiscal year by a number of 

high profile disputes concerning which the Agency was jointly requested to provide mediation 

services and the mediation played a critical role in collective bargaining agreements 

ultimately being achieved. The list below illustrates this point: 

• Verizon and CWA/IBEW – A marathon 60 day mediation resulted in agreements 

covering 45,000 employees. 

• Kaiser Permanente and the Coalition of Kaiser Unions – A team of mediators 

contributed mightily to the successful resolution of collective bargaining agreements 

covering 100,000 employees, the single largest unit of healthcare workers in our 

country. 

• International Longshoreman’s Association and the United States Maritime Alliance – 

Again, thanks to a team of mediators and weeks of intense negotiations, a threatened 

strike was averted that would have shut down all our Atlantic and Gulf ports and 

severely impacted the nation’s economy. 

• Consolidated Edison Company of New York and the Utility Workers Union of 

America, Local 1-2 – What was reported at the time to be the largest lockout in recent 

U.S. labor-relations history, affecting some 8,000 electrical utility workers in 

metropolitan New York City, was ended after 26 days last summer with the assistance 

Report for 

Fiscal Year 2012 
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• Lockheed Martin Corporation and the International Association of Machinists Aerospace 

Workers, District 776 – A nine week strike by 3,600 workers at three of the company’s 

facilities in Texas, California and Maryland affected production of F-16 fighter jets until 

FMCS mediators assisted the parties in reaching an agreement. 

At bottom, mediation is an extension of the collective bargaining process and experience teaches 

that good faith collective bargaining unquestionably is the best mechanism for resolving labormanagement disputes and for providing the framework for working together to achieve 

productivity, innovation and competitiveness – all of which are necessary for survival and 

success in our global economy. Therefore, we will continue to educate and inform labor and 

management representatives, our stakeholders and key audiences about the value of FMCS 

services in preventing or mitigating economically disruptive labor disputes and workplace 

conflicts. With more than six decades of experience, FMCS has unmatched expertise and an 

unequalled record in the field of labor dispute resolution. Looking ahead, we are ready for 

whatever challenges a new year may bring. 

Other Initiatives 

FY 2012 was also notable for the successful continuation of a unique FMCS outreach to promote 

labor-management cooperation—this time in the public sector with the all-important goal of 

elevating student achievement in our nation’s public schools. In conjunction with the U.S. 

Department of Education, two major teachers’ unions—the American Federation of Teachers 

(AFT) and the National Education Association (NEA)—and the organizations representing 

school administrators, school boards, and major urban school systems (American Association of 

School Administrators, the National School Boards Association and the Council of the Great 

City Schools), the FMCS has worked to promote student achievement as a priority concern in 

collective bargaining in public education. With its expertise in developing cooperative labormanagement relationships and training employers and employees in joint problem-solving 

techniques, the FMCS has played a key role in this major educational reform effort, launched by 

the partnering organizations and agencies at a conference in Denver in 2011 and reinvigorated 

with a similar conference of the participating organizations in Cincinnati in 2012. 

Also in FY 2012, FMCS continued its work in support of the implementation of labormanagement partnerships for federal government agencies across the country, as mandated by 

President Obama’s Executive Order 13522, issued in 2009, to “promote satisfactory labor 

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

agencies were required by the President’s order to establish “labor-management forums [that] 

allow managers and employees to collaborate in continuing to deliver the highest quality services 

to the American people.” The purpose of the order was to establish a cooperative and productive 

form of labor-management relations throughout the executive branch which would inure to the 

benefit of the taxpayers. 

Working with the Federal Labor Relations Authority (FLRA) Office of the General Counsel, the 

FMCS helped to craft an appropriate training program for federal agencies and employees’ 
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unions that would enable them to create productive partnerships and labor-management forums 

in compliance with the President’s order. Through FY 2011 and extending through FY 2012, the 

FMCS provided training to a wide range of federal departments and agencies, including the 

Departments of the Treasury, Defense, Homeland Security, Health and Human Services, 

Veterans Affairs, Labor, Agriculture, the Army and the Navy, the Office of Personnel 

Management, the Federal Aviation Administration, the National Labor Relations Board, the 

Peace Corps, and the Marine Corps. In a testament to the success of the FMCS training, the 

Agency was tasked by the National Council on Federal Labor-Management Relations, the entity 

created to oversee the implementation of Executive Order 13522, with developing an innovative 

“train-the-trainer” program, which multiplied the effect of the training within large agencies by 

increasing the number of available trainers with each training session. In FY 2012, the FMCS 

“train-the-trainer” initiative was developed and successfully launched through an innovative, 

Internet-based program, effectively offering this low-cost training government-wide. 

Apart from those all important training programs the Agency also provided its traditional 

mediation services to assist a number of government agencies and their respective labor 

organizations in reaching collective bargaining agreements. Most notably an FMCS mediator, 

pursuant to the joint request of Transportation Security Administration and the American 

Federation of Government Employees, was present throughout their bargaining sessions and was 

credited by them as having played a major role in their ultimately achieving a landmark 

agreement covering 45,000 employees, the single largest bargaining unit throughout the federal 

government. 

Alternative Dispute Resolution (ADR) 

FY 2012 also featured a re-vitalization of the FMCS’s Alternative Dispute Resolution (ADR) 

programs, authorized by both the Administrative Dispute Resolution Act (ADRA) and the 

Negotiated Rulemaking Act. These statutes designate the FMCS as a key provider of ADR 

services and support for federal agencies seeking an alternative to costly litigation on a wide 

variety of issues, including mediation of discrimination and whistleblower claims, facilitation of 

negotiated rulemaking, and mediating complex, multi-party disputes arising under agency 

programs. 

Through extensive outreach and collaboration with other executive branch agencies, FMCS has 

reacquainted key decision-makers with the potential cost-savings and value of FMCS training, 

systems design, mediation, and facilitation services. The early results of these outreach effort 

have been rewarding. In addition to delivering ADR services to the Veterans Administration, 

Centers for Medicare and Medicaid, the Departments of Labor, Education, Health and Human 

Services, Transportation and numerous others, the FMCS is now mediating whistleblower 

complaints for both the Office of Special Counsel (OSC) and the Occupational Safety and Health 

Administration (OSHA). FMCS mediators are also helping to resolve unfair labor practice 

disputes for the National Labor Relations Board (NLRB), specifically, cases that have already 

been heard and decided by Administrative Law Judges but are pending review by the Board, and 
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ultimately the federal appeals courts. Resolving such disputes will save the government and the 

parties the time and costs of further litigation. 

International 

FY 2012 also saw growth in the delivery of FMCS assistance to the U.S. Departments of State 

and Labor to help developing market economies and current or prospective U.S. trading partners 

improve their labor relations and dispute resolution systems. During this past year, FMCS 

mediators provided much-needed mediation training and capacity building in many emerging 

democracies around the world. 

Conclusion 

At the close of FY 2012, the FMCS was moving ahead with plans for a conference of labor 

relations practitioners to promote the value and benefits of labor-management collaboration in 

collective bargaining. In addition, plans were being finalized for an “ADR Open House” to 

showcase the value and cost-savings potential of FMCS ADR services. The work of the FMCS 

is as essential to the success of the U.S. economy as it has ever been. We will continue to 

educate and inform labor and management representatives, government agencies, our 

stakeholders and key audiences about the value of FMCS services in preventing or mitigating 

economically disruptive labor disputes, workplace conflicts, and our ability to reduce the costs of 

litigation relating to the delivery of government services and programs. With more than six 

decades of experience, FMCS has unmatched expertise and an unequalled record in the field of 

labor dispute resolution. Looking ahead, we are ready for whatever challenges a new year may 

bring. 

Sincerely, 

George H. Cohen 

Director 
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FY 2012 Agency Services 

Agency Mission 

For 65 years, the Federal Mediation and Conciliation Service (FMCS) has delivered neutral and 

confidential conflict resolution assistance to the nation’s unionized workplaces. The core mission 

of FMCS is to help employers and unions avoid costly work stoppages and minimize their 

potentially devastating effects on regional or national commerce. The FMCS was created by 

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

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

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

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

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

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

bargaining agreements. 

A. Collective Bargaining Mediation 

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

stoppages to the U.S. economy. The 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 2012, FMCS mediators were actively 

involved in more than 4,500 collective bargaining contract negotiations in every major industry 

throughout the United States. 

B. Grievance Mediation 

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

the terms and conditions of a collective bargaining agreement. FMCS mediators provide this 

service to the private and public sectors with the goal of preventing unresolved contract 

interpretation issues from 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 2012, FMCS mediated nearly 1,800 grievance mediation cases and helped the 

parties reach agreement in 1,367 of these (77 percent). 
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C. Relationship-Development and Training 

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

important goal of the FMCS. The FMCS’s relationship-building training programs are designed 

to improve labor-management relationships by helping labor and management to develop 

collaborative problem-solving approaches. Use of these programs better enables the parties to 

jointly respond to rapidly changing business and economic conditions during the term of the 

contract and also make future mediation efforts more effective. 

D. Employment Mediation 

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

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

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

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

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

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

government decision-making. The 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 2012, FMCS mediated more than 

1,100 employment cases. 

E. International Training and Exchange 

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

and conflict resolution around the world. FMCS’ international work is a small, but integral, part 

of its services. Emerging market economies often struggle to compete effectively in a globally 

integrated marketplace. FMCS helps establish the labor relations institutions that are essential to 

the smooth functioning of free market economies. These programs are also a knowledge-sharing 

experience: FMCS mediators gain familiarity with complex issues affecting the global economy 

and, as a result, are more effective in resolving labor-management disputes with international 

implications. 

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

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

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

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

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

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

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

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

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

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

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

Organization. 
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F. Arbitration Services 

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

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

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

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

which they may choose an arbitrator to hear their case and render a decision. During FY 2012, 

the Office of Arbitration Services processed nearly 13,600 requests for arbitration panels 

nationwide. Arbitrators on the FMCS roster heard and decided nearly 2,000 labor arbitration 

cases. 

G. FMCS Institute for Conflict Management 

The FMCS Institute for Conflict Management provides training and education to labor and 

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

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

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

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

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

participants. 
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Mediation Services Program Data

PROGRAM SERVICES FY 2009 FY 2010 FY 2011 FY 2012

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

 Assigned Cases113,887 14,127 13,712 13,114 

 -Private Sector 12,425 12,888 12,460 11,814 

 -Public Sector (state and municipal) 1,138 906 943 943 

 -Federal Sector 324 333 309 357 

 Mediated Cases2

4,767 4,919 4,665 4,528 

 -Private Sector 3,320 3,632 3,271 3,079 

 -Public Sector (state and municipal) 1,155 991 1,091 1,111 

 -Federal Sector 292 296 303 338 

 Closed Cases 13,308 12,992 13,776 13,652 

 Closed Mediated Cases 3,958 4,005 3,815 3,764 

 Activity Rate330% 31% 28% 28% 

 Settled and Closed Mediated Cases 3,395 3,428 3,234 3,159 

 Percentage of mediated cases settled through FMCS4

 86% 86% 85% 84% 

 Activity rate in significant cases5 37% 45% 33% 46% 

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

 Assigned Cases 2,027 2,124 1,968 1,837 

 Mediated Cases 2,004 2,084 1,905 1,784 

 -Private Sector 1,570 1,708 1,513 1,372 

 -Public Sector (state and municipal) 313 239 261 264 

 -Federal Sector 121 137 131 148 

 Settled GM Cases 1,479 1,532 1,428 1,367 

 Percentage of cases settled through FMCS6 74% 74% 75% 77% 

3. RELATIONSHIP-DEVELOPMENT AND 

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

 

 Number of training programs provided 2,327 2,200 2,301 2,128 

 -Private Sector 1,400 1,471 1,267 1,262 

 -Public Sector (state and municipal) 682 433 493 463 

 -Federal Sector 245 296 541 403 

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

 Mediated Cases 1,362 1,392 1,330 1,110 

 -Federal Sector 1,336 1,387 1,297 1,090 

 -Public Sector (state and municipal) 9 2 5 5 

 -Private 17 3 28 15 

 Settled EM Cases 638 675 641 537 

 Percent of EM cases settled through FMCS7 47% 48% 48% 48% 

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

 Outreach cases83,622 3,240 3,190 3,019 

 

1

 Section 8(d) of the NLRA, as amended, 29 U.S.C. §158(d) requires that any employer or labor organization provide notice to FMCS 30 days prior to 

contract expiration. Not all cases providing notices are assigned. Actual FY 2012 FMCS case intake exceeded 22,500.

2

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

3

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

4

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

5

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

6

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

7

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

8

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

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

designed to increase public knowledge.
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Work Stoppage Information 

2007 2008 2009 2010 2011 2012 

Work stoppages carried from preceding FY 31 19 29 13 18 24 

Work stoppages beginning within FY 163 193 103 159 155 162 

Work stoppages closed within FY 175 183 119 154 149 164 

Work stoppages open at end of FY 19 29 13 18 24 22 

Average duration of work stoppages in closed cases 

(number of days) 63.1 51.8 104.2 44.9 45.3 49.0 

Estimated number of worker-hours lost due to work 

stoppages (1,000s) 29,734 20,147 19,609 8,877 11,222 11,038 

Work Stoppage Cost Information 

Direct 

Costs 

Indirect 

Costs 

Total 

Costs 

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

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

2001 495,484 476,000 971,484 

2002 363,522 461,289 824,811 

2003 372,678 329,595 702,273 

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

2005 488,075 450,737 938,812 

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

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

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

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

2010 250,162 238,538 488,700 

2011 389,041 314,144 703,185 

2012 380,080 343,279 723,359 

 

Savings to Parties Attributable to Mediation

Reduced 

Incidence

Reduced 

Duration

Total 

Savings

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

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

2001 667,206 60,372 727,578 

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

2003 717,239 224,287 941,525 

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

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

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

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

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

2009 2,613,336 1,142,193 3,755,529 

2010 1,389,809 (39,122) 1,350,687 

2011 301,044 763,335 1,064,379 

2012 283,421 601,157 884,578 
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Arbitration Services Program Data

Activity 2007 2008 2009 2010 2011 2012 

 

Panels Issued9 16,264 15,717 16,692 16,486 14,367 13,538 

Arbitrators Appointed 6,485 6,568 6,496 6,870 6,608 6,129 

 

Activity Charged For 

Travel Days .45 .45 .57 .48 .44 .92 

Hearing Days 1.10 1.07 1.10 1.14 1.10 1.13 

Study Days 2.34 2.43 2.40 2.37 2.37 2.37 

Total 3.89 3.95 4.07 3.99 3.91 4.42 

 

Average Charges 

Per Diem Rate $883 $913 $962 $981 $984 $1,006 

Amount of Fee $3,571 $3,780 $4,049 $4,039 $4,045 $4,576 

Amount of Expenses $359 $391 $421 $380 $384 $389 

Total Charged $3,929 $4,171 $4,470 $4,419 $4,429 $4,965 

 

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

received.