FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2019

Congressional Budget Submission

Submitted to the

Congress

February 2018

i

FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2019

Congressional Budget Submission

Table of Contents

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

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

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

C. Accountable Government ................................................................................. 5

D. Conclusion ........................................................................................................ 7

II. FMCS Organizational Chart ................................................................................... 8

III. Appropriation Language ......................................................................................... 9

I. Statutory and Other Legal Authority .................................................................... 10

II. Budget Tables and Detailed Financial Requirements........................................... 14

III. Mission and Program Structure ............................................................................ 23

A. Collective Bargaining Mediation.................................................................... 24

B. Grievance Mediation....................................................................................... 24

C. Relationship-Development and Training........................................................ 24

D. Conflict Resolution and ADR Services for Government................................ 25

E. International Training and Exchange.............................................................. 26

F. Arbitration Services........................................................................................ 27

G. FMCS Institute for Conflict Management ...................................................... 27

H. Labor-Management Committee Grants .......................................................... 27

IV. Workload Projections – FY 2018 and FY 2019.................................................... 29

V. Annual Performance Plan ..................................................................................... 32

1

Fiscal Year 2019 Budget Request

I. Executive Summary

Seventy years ago, Congress created the Federal Mediation and Conciliation Service 

(FMCS) through the Labor-Management Relations Act of 1947 (Taft-Hartley) as an 

independent agency of the Federal Government and charged it with preventing and 

minimizing labor-management disputes affecting interstate commerce by providing 

mediation, conciliation, and voluntary arbitration services. Congress had the wisdom and 

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

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

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

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

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

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

to increased competitiveness, job growth, and enhanced economic well-being.

As a non-regulatory and independent agency, the services that FMCS provides to 

American business and Federal agencies are largely voluntary. Consequently, FMCS 

mediators must uphold the Agency’s long and proud record of success in helping its 

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

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

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

conflict resolution strategies designed to enhance organizational effectiveness, improve 

competitiveness, increase jobs and job security, and promote organizational efficiency.

The need for FMCS conflict resolution strategies is just as great in this second decade 

of the 21st Century as it was 70 years ago. As in earlier periods of economic transition, 

new technologies and business models are fundamentally changing nearly every sector of 

the U.S. economy and as a result, increasing the likelihood of workplace conflict. 

Additionally, employers and workers continue to confront instability and rapid change in 

both retirement and health care benefits. Such change presents enormous challenges and 

opportunities for American workers and employers across all economic sectors. FMCS is 

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

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

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

and automobile and steel manufacturing—or among service industry workers or those 

participating in the today’s high-tech economy, labor disputes arise from complex 
2

decisions relating to costs, hiring and retaining skilled workers, managing technology, 

and winning globally. FMCS, headquartered in Washington, D.C., has strategically 

positioned ten regional offices and maintains more than 60 field stations across the 

country where it can best help American workers and business thrive and succeed.

The 2019 budget requests $47.2 million, an amount which will allow FMCS to 

continue meeting anticipated demand for its statutory activities.

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

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

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

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

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

includes advanced technology, knowledge, and services.

Labor and management continue to rely upon traditional collective bargaining 

methods and models. However, new bargaining forms have emerged in the past few 

years, such as multi-party dialogues, local legislative initiatives, high profile social media 

campaigns and community-based strategies. These new forms of multi-party and 

community-based bargaining strategies present challenges that traditional collective 

bargaining does not. Thanks to their training and expertise in dispute resolution 

techniques and multi-party dialogues, FMCS mediators are able to assist parties who are 

trying to navigate these new realities.

Even in today’s high-tech economy and in the wide range of settings in which 

bargaining takes place, the interests of labor and management in 2019 will be 

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

employment and businesses will be seeking to ensure their competitiveness and 

profitability. In all cases, FMCS's highly skilled, professional mediators are uniquely 

positioned to help parties find durable solutions in a transitioning economy and 

competitive world.

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

workplace models during times of change, so too must FMCS. To date, FMCS has

updated its management structure, internal operations and mediation services to ensure 

that it provided the operational excellence, employee engagement, and culture of 

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

customers. In 2019, FMCS will continue to modernize its operations, with a particular 

focus on workforce management, skills enhancement, record keeping, and information 

security.

B. Mediation and Conflict Resolution Services

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

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

agency. For the U.S. economy, the FMCS’s statutory mandate to prevent or minimize
3

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

created the Agency.

FMCS is proud of its accomplishments and looks forward, in 2019, to intensifying its 

efforts to educate and inform business and labor of the value and benefits of the Agency's 

training, facilitation, and dispute resolution services. In 2019, FMCS will increase its 

efforts to:

Use FMCS mediators' extensive conflict resolution experience and skills to 

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

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

efficiency.

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

modified traditional, and expedited interest-based bargaining.

Assist other government agencies to manage their disputes and resolve 

stakeholder conflict through alternative dispute resolution processes, including 

the facilitation of public policy discussions, and negotiated rulemaking.

Managing Bargaining Challenges: Anticipating Major Contract Negotiations.

In 2019, FMCS expects to receive approximately 19,000 notices of expiring collective 

bargaining agreements. Some 240 of the known expiring contracts involve bargaining 

units of 1,000 members or more and represent a total of more than 1.3 million members. 

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

manufacturing, utilities—including nuclear power generation, aerospace, 

telecommunications, retail, and health care.

More than 16,000 grocery workers at Safeway, and Save Mart/Lucky in the 

San Francisco Bay area and Washington State face expiring contracts on 

October 11 and 31 in 2018.

Contracts covering nearly 40,000 workers at Boeing, General Dynamics, and 

Raytheon expire in October and November 2018.

An additional 16,000 grocery workers at Safeway and King Soopers in 

Colorado have contracts expiring in mid-January 2019.

35,000 grocery workers in Massachusetts and Rhode Island have contracts 

expiring at the end of February, 2019.

In March 2019, the three-year contract covering more than 50,000 Southern 

California grocery workers is set to expire.

Nearly 7,000 healthcare workers employed by Kaleida Health in Pittsburgh, 

PA have a contract expiring on May 31, 2019.
4

A master agreement between Michelin and BF Goodrich tire manufacturers 

and the United Steel Workers expires on July 30, 2019. This agreement 

covers nearly 30,000 rubber workers across the Southern U.S.

In August 2019, AT&T contracts across the South expire, affecting more than 

30,000 workers in nine states between North Carolina and Louisiana.

On September 14, 2019, agreements covering the “Big Three” automakers, 

Ford, GM, and Chrysler will expire. These agreements cover nearly 218,000 

auto workers across the U.S.

Promoting Collaborative Solutions: Labor-Management Training

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

disputes that could have an adverse impact on the U.S. economy, FMCS experience 

demonstrates the enormous value of training parties in the tools and techniques of 

collaboration and joint problem-solving well in advance of any contract expiration.

In the private and Federal sectors, FMCS will continue to offer a wide range of 

programs designed to prevent workplace disputes and improve labor-management 

relationships. These programs help the parties develop collaborative, problem-solving 

approaches for managing conflict. Developed through decades of hands-on dispute 

resolution experience, the FMCS labor relations model encourages an ongoing, joint 

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

transparency.

Alternative Dispute Resolution Services to Government

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

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

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

arising under their jurisdictions.

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

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

employment disputes and disputes involving administrative programs; training in the 

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

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

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

cooperation and collaboration.

Managing Bargaining Challenges: Recent Major Contract Negotiations

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

major cases and activities during fiscal 2017:

Momentive Performance Materials and IUE-CWA Locals 81359 and 

81380. Dedicated behind-the-scenes work by an FMCS mediator in more 
5

than a dozen meetings was the critical ingredient in a labor settlement that 

returned more than 700 striking workers to their jobs at an upstate New York 

chemical plant, near Albany, ending a disruptive 105-day strike at the facility.

Cleveland Public Schools and Cleveland Teachers Union (CTU). After 

16 months of negotiation requiring all the skills of a dedicated FMCS 

mediator, school system negotiators and teachers’ representatives reached an 

agreement that was the culmination of a final marathon 24-hour bargaining 

session, averting a possible strike that would have closed classrooms to tens of 

thousands of Cleveland school children.

AT&T and Communication Workers of America (CWA). After a 

recommended tentative agreement was twice turned down by the bargaining 

unit, an Oakland CA-based FMCS mediator was called in to work with the 

parties to help them negotiate another settlement. After three days, AT&T 

announced that Pacific Bell and Nevada Bell had reached a new tentative 

contract in West Region wireline contract talks. The new agreement covers 

more than 17,000 employees in California and Nevada.

International Longshore and Warehouse Union (ILWU) and the Pacific 

Maritime Association (PMA). The July 2017 announcement of a three-year 

contract extension between the ILWU and the PMA ensured stable labor 

relations at all 29 West Coast ports until July, 2022. With more than 350 

million tons of cargo flowing through the West Coast ports each year, the 

smooth flow of commerce through these ports is critical to the U.S. economy. 

This agreement highlights the importance of taking early and decisive action 

well ahead of scheduled contract deadlines.

Wyman-Gordon Forgings, Inc. and IAMAW Local 37. In the disastrous 

aftermath of hurricane Harvey, a Houston-based FMCS mediator persevered 

through 90-degree temperatures and flood waters to assist IAMAW Local 37, 

representing some 275 workers, reach agreement with Wyman-Gordon 

Forgings, Inc., a Houston manufacturer of aircraft engine components, ending 

a 20-day strike at the plant.

C. Accountable Government

In 2019, FMCS will continue to meet the highest standards of government efficiency, 

integrity, employee engagement, and customer service by sustaining a culture of 

continuous improvement among the Agency’s highly motivated workforce. Like many 

Federal agencies, FMCS has experienced occasional challenges related to employee 

recruitment, training, consistent performance, and retention. However, FMCS employees 

and their level of commitment continue to keep the agency at the forefront among 

similarly sized units of the Federal government. Year after year, FMCS has typically 

scored among the top agencies in the results of the Federal Employee Viewpoint Survey

(FEVS), administered by the Office of Personnel Management (OPM).
6

More specifically, the FEVS results recognized FMCS as one of the best places to 

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

2016 (3rd place among small agencies), and 2017 (1st place among small agencies). The 

2015 results also designated FMCS as one of the “most innovative” Federal agencies, 

rating highly among 371 Federal agencies and subcomponents for fostering innovation 

and motivating employees to develop new ideas on the job. For 2019, and beyond, 

FMCS is committed to meeting and exceeding its performance goals and surpassing its 

past successes as documented by the FEVS results.

Creating Structural Integrity and Operational Consistency

As in past years, FMCS continues to use a business-based model (metrics) for 

reviewing field office utilization for efficiency and cost-effectiveness. This evaluation 

occurs on a bi-annual basis and as retirements, workload demand, and attrition present 

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

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

workforce) distributed across 66 field stations—FMCS makes sure to place employees in 

areas where they can provide the greatest benefit at the least cost. FMCS will continue to 

use a workload evaluation model to determine trends in specific field stations. The 

results help ensure that decisions to fill vacant mediator positions reflect the current and 

potential demand for FMCS services.

Increasing Compliance and Strengthening Internal Controls

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

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

keeping policies and systems. In 2019, FMCS will continue to implement the new 

policies and procedures recommended by NARA in conjunction with the Controlled 

Unclassified Information (CUI) initiative. Improved records management, in concert 

with strengthened financial policies and procedures will allow FMCS to continue to 

demonstrate effective and efficient use of public resources.

Reforming Hiring Practices and Managing Performance

Small agencies often face a challenge in attracting talented job applicants. In 2019, 

and in the ensuing years, FMCS seeks to maintain and improve upon its position as one 

of the most desirable places to work in government. Achieving this goal enables FMCS

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

most effective and efficient workforce.

Promoting Employee Engagement

Employee engagement is a process designed to ensure that employees are committed 

to the organization’s goals and values, vested in the organization’s success, and are 

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

engagement goals for 2019, FMCS will continue to encourage diverse viewpoints and 

innovation, solicit employee feedback, and practice open communications and 

transparency.
7

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

regular communications from the Agency leadership; daily news roundups; quarterly 

virtual town hall meetings; regular newsletters featuring up-to-date information about 

significant cases and training programs; regular meetings with all levels of staff that 

focus on goals, action plans, and deliverables; providing field directors with opportunities 

for regular information exchange and collaboration; and a continuation of open forums to

constructively engage the FMCS workforce on a regular basis.

Modernizing Communications with Customers

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

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

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

taxpayers receive the most value for the services it provides.

In 2019, FMCS will have in place an updated document management system. This is 

in concert with earlier efforts to update Agency technology to better serve current and 

future customers, including: launching a new public website; using social media 

(Facebook, Twitter, and YouTube) to communicate with customers and employees; and 

using a new email service delivery system designed to reach larger audiences with 

information about upcoming live and web-based conflict resolution presentations and 

training events.

D. Conclusion

The U.S. economy is in a period of transition on many levels. While these

transformations present great opportunities, they also present the challenge of increased 

workplace conflicts as workers and businesses grapple with issues of technology, 

automation, competition, skills, and cost-cutting. Workplace disputes are arising in both 

traditional labor-management collective bargaining settings, as well as in high profile 

social media and community based campaigns for improved wages and working 

conditions.

Over more than seven decades, FMCS has compiled a proud record of success in 

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

collaborative problem-solving relationships. As the nature, complexity, and range of the 

issues confronting managers and employees in business and government have evolved, so 

too has FMCS, constantly seeking new and innovative methods to prevent disruptions to 

the U.S. economy, to reduce costs to U.S. taxpayers, and, most importantly, to help 

managers and workers together overcome the challenges of the changing economy in 

business and government workplaces.

Given the anticipated size and number of collective bargaining agreements expiring in 

FY 2019, the need to fill vacant mediator positions to meet the anticipated demand for 

FMCS services, and the ongoing need for labor and management to work collaboratively 

to achieve competitiveness, economic development, and job security, we urge you to 

favorably consider this request for $47,200,000.
8

II. FMCS Organizational Chart

Director *

(Vacant)

Deputy Director

Education & Training,

FMCS Institute

EEO

Deputy Director, 

Field Operations

General Counsel

Budget Reg. 01 (Woodbridge, NJ)

Reg. 02 (Philadelphia, PA)

Reg. 03 (Pittsburgh, PA)

Reg. 04 (Cleveland, OH)

Reg. 05 (Nashville, TN)

Reg. 06 (St. Louis, MO)

Reg. 07 (Seattle, WA)

Reg. 08 (Los Angeles, CA)

Reg. 09 (Chicago, IL)

Reg. 10 (Minneapolis, MN)

Human

Resources 

Procurement & 

Operational Services 

Field Programs & 

Innovation

Notice Processing & 

Arbitration

Information

Technology

Finance 

ADR & International 

Services

(Acting) 

Chief Financial

Officer

(Acting)

Ethics

Public Affairs * In the absence of a Director, the Deputy Directors (SES) jointly 

oversee Agency operations, including the EEO function.

National Programs 

& Initiatives

(Vacant) 

As of Feb. 12, 2018
9

III. Appropriation Language

FEDERAL MEDIATION AND CONCILIATION SERVICE

SALARIES AND EXPENSES

For expenses necessary for the Federal Mediation and Conciliation Service 

(‘Service’) to carry out the functions vested in it by the Labor-Management Relations Act, 

1947, including hire of passenger motor vehicles; for expenses necessary for the LaborManagement Cooperation Act of 1978; and for expenses necessary for the Service to 

carry out the functions vested in it by the Civil Service Reform Act, $47,200,000: 

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

for special training activities and other conflict resolution services and technical 

assistance, including those provided to foreign governments and international 

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

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

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

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

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

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

jurisdiction.
10

I. Statutory and Other Legal Authority

FEDERAL MEDIATION AND CONCILIATION SERVICE

Title II of the Labor-Management Relations Act of 1947 (Taft-Hartley) established 

the Federal Mediation and Conciliation Service as an independent agency of the Federal 

Government whose primary mission is to prevent and minimize labor-management 

disputes affecting interstate commerce by providing mediation, conciliation, and 

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

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

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

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

National Mediation Board.

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

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

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

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

In 1990, FMCS was authorized by the Administrative Dispute Resolution Act and the 

Negotiated Rulemaking Act to assist other Federal agencies in resolving disputes arising 

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

the process of negotiated rulemaking. The Administrative Dispute Resolution Act of 

1996 amended and permanently reenacted these 1990 Acts.

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

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

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

programs are described below.

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

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

interruptions to the free flow of commerce growing out of labor disputes by 

helping the parties settle such disputes through mediation. Parties are required 

to notify the FMCS 30 days prior to a contract termination or modification 

date so that mediation services may be proffered.

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

in the opinion of the President, imperil the national health or safety. In such
11

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

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

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

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

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

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

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

include special provisions intended to prevent or minimize work stoppages in 

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

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

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

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

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

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

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

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

in any mediation efforts by FMCS.

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

directs the FMCS to provide mediation assistance in disputes arising from 

negotiations between Federal agencies and the representatives of their 

employees.

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

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

services and assist in establishing arbitration boards in collective bargaining 

disputes between the Postal Service and the exclusive representatives of its 

employees.

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

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

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

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

convene fact finding panels to recommend supervisory pay and fringe benefit 

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

and other employment policies.

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

by President Eisenhower, in order to ensure the uninterrupted functioning of 

the atomic energy program without strikes or lockouts due to labormanagement disputes. This panel was moved to the Atomic Energy 

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

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

Energy Labor Management Relations Panel (ELMRP).
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VII. Executive Order 11374, October 11, 1967, transferred the responsibilities of 

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

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

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

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

the appointment of arbitrators to decide disputes concerning compensation for 

the use or development of pesticide registration data.

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

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

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

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

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

labor-management relationships, employment security, and organizational 

effectiveness. The Act authorizes the Service to provide grant funds to assist 

in the establishment and operation of these labor-management committees.

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

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

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

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

enacted, and incorporated into the Administrative Procedure Act, the 

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

the Negotiated Rulemaking Act provisions (5 U.S.C. 561 et seq.) of 1990 

legislation. These provisions and their predecessors suggest that the ADR and 

regulatory-negotiation “experiments” have become well-accepted processes of 

Federal agencies. The ADRA encourages the development of guidelines to 

expedite the selection of neutrals and to facilitate the use of alternative dispute 

resolution in the Federal Government.

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

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

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

assistance to Federal agencies. Under this legislation, FMCS continues to 

assist agencies in negotiated rulemaking processes as well as other ADR 

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

skills.

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

Department of Health and Human Services, implementing its authority under 

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

to provide mediation assistance for the resolution of age-discrimination 

charges filed against any agency receiving Federal financial assistance to any 

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

amended by Public Laws 106-181, 112-95 and 114-242; 49 U.S.C. 40122(a))

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

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

mutually agreed upon alternative, to mediate disputes concerning changes to 

the FAA’s personnel management system or the parties’ collective bargaining 

agreement. If mediation is unsuccessful, FMCS is required to prepare a list of 

15 qualified arbitrators, from which two will be selected by the parties and a 

third by these two, to form an arbitration board. This board will render a final 

and binding determination.

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

2003 (Public Law 108-170, as amended by Public Law 111-163, 38 U.S.C. 

7403 (h)(4)(C)) gives the Secretary of Veterans Affairs or the exclusive 

representative of the affected employees the option of requesting the services 

of FMCS to assist the parties in reaching an agreement regarding disputes 

with respect to any system of promotion and advancement proposed by the 

Secretary.

XIV. The Transportation Security Administration Determination, “Transportation 

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

facilitation of collective bargaining negotiations by FMCS or other agreedupon entity, and requires TSA and the unions subject to bargaining to attend 

training in interest-based negotiations conducted by FMCS.
14

II. Budget Tables and Detailed Financial Requirements

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET AND STAFFING BY ACTIVITY

FY 2017 FY 2018 FY 2019

Total Program

Increase or (Decrease)

Actual Estimated Request 2018 to 2019

Full-Time 

Equivalent 

Employment

Budget 

Authority

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Request

($1,000s)

Full 

Year CR

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Request

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Authority

($1,000s)

1. Collective Bargaining and 

Grievance Mediations 

(Dispute), Relationship 

Development Training 

(Preventive), and Outreach 

(Public Information) 

Workloads 160 34,805 173 35,994 34,450 173 34,807 0 357

2. Arbitration Services............. 8 714 7 693 693 7 703 0 10

3. National Office and 

Operational Support ............ 43 10,231 46 11,569 10,791 46 11,690 0 899

4. Labor-Management Grants.. 0 900 0 399 399 0 0 0 (399)

Sub-Total Appropriated 211 $46,650 226 $48,655 $46,333 226 $47,200 0 $867
15

BUDGET AND STAFFING BY ACTIVITY

FY 2017 FY 2018 FY 2019

Total Program

Increase or (Decrease)

Actual Estimated Request 2018 to 2019

Full-Time 

Equivalent 

Employment

Budget 

Authority

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Request

($1,000s)

Full 

Year CR

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Request

($1,000s)

Full-Time 

Equivalent 

Employment

Budget 

Authority

($1,000s)

5. Reimbursable programs: 

ADR Services, 

Employment Mediation, 

International Training,

Institute Courses, and 

Conference Fund ................. 8 1,525 9 1,965 1,965 9 1,808 0 (157)

6. FMCS Internal Training 

and Education...................... 1 1,070 1 1,030 1,030 1 1,043 0 13

Sub-Total Reimbursable 9 $2,595 10 $2,995 $2,995 10 $2,851 0 ($144)

TOTAL RESOURCES 220 $49,245 236 $51,650 $49,328 236 $50,051 0 $723
16

FEDERAL MEDIATION AND CONCILIATION SERVICE

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 2018 to 2019

Actual Actual Estimated CR Request Change (+/-)

Personnel Compensation $25,763 $25,547 $27,814 $26,285 $26,606 $321 

Full-time permanent 25,249 25,035 27,213 25,758 25,968 210

- Full-time permanent positions 25,249 25,035 27,213 25,758 25,968 210

Other than full-time permanent 235 160 248 182 283 101

- Other than full-time permanent positions 235 160 248 182 283 101

Other Personnel Compensation 279 352 353 345 355 10

- Overtime & holiday pay 21 42 30 22 30 8

- Cash incentive awards 258 310 323 323 325 2

Personnel Benefits $8,247 $8,294 $9,209 $8,416 $8,399 ($17)

Civilian Personnel Benefits 8,247 8,294 9,209 8,416 8,399 (17)

- CSRS Retirement Contribution 149 136 90 90 89 (1)

- FERS Retirement Contribution 3,095 3,110 3,526 3,303 3,264 (39)

- Federal Retirement Thrift Savings Plan Contribution 1,102 1,110 1,328 1,127 1,140 13

- Group life insurance 45 48 55 47 48 1

- Health Insurance Contribution 1,786 1,800 1,884 1,848 1,870 22

- OASDI – FERS 1,317 1,400 1,647 1,368 1,384 16

- Employee compensation 304 239 178 178 143 (35)

- Relocation expenses (PCS) 87 0 0 0 0 0
17

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 2018 to 2019

Actual Actual Estimated CR Request Change (+/-)

Personnel Benefits (continued)

Civilian Personnel Benefits (continued)

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

- Subsidy for commuting costs 5 80 80 80 80 0

- Medicare contribution 341 355 405 359 364 5

Benefits of Former Personnel $2 $50 $50 $50 $50 $0 

- Unemployment compensation 2 50 50 50 50 0

- Voluntary separation incentive 0 0 0 0 0 0

Travel and Transportation of Persons $1,917 $1,895 $1,823 $1,823 $1,903 $80 

- National office travel 222 210 188 188 188 0

- PCS family travel 1 0 0 0 0 0

- Official car 6 5 5 5 5 0

- Field office travel 1,688 1,680 1,630 1,630 1,710 80

Transportation of Things $10 0 0 0 0 0

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

Rents, Communications, and Utilities $6,572 $5,015 $6,546 $6,546 $6,612 $66 

Rental Payments to GSA 5,606 4,000 5,350 5,350 5,450 100

- Rental payments to GSA 5,606 4,000 5,350 5,350 5,450 100
18

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 2018 to 2019

Actual Actual Estimated CR Request Change (+/-)

Rents, Communications, and Utilities (continued)

Rental Payments to Others 1 20 13 13 13 0

- Conference room rental 1 12 5 5 5 0

- Equipment rental 0 8 8 8 8 0

Communications, Utilities, and Miscellaneous 965 995 1,183 1,183 1,149 (34)

- GSA Phones 119 166 188 188 150 (38)

- FTS Phones 13 10 5 5 5 0

- Commercial Phones 234 378 360 360 360 0

- Data communication services 544 388 577 577 581 4

- Postal services and rentals 55 53 53 53 53 0

Printing and Reproduction $40 $83 $45 $45 $45 $0 

- FMCS forms and other printing 40 83 45 45 45 0

Other Contractual Services $4,064 $3,412 $1,699 $1,699 $2,290 $591 

Advisory and Assistance Service 70 89 95 95 61 (34)

- Computer assisted legal research 0 15 14 14 15 1

- OPM background investigations 64 68 75 75 40 (35)

- Office equipment and machinery relocation 6 6 6 6 6 0
19

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 2018 to 2019

Actual Actual Estimated CR Request Change (+/-)

Other Contractual Services (continued)

Other Services 444 756 460 460 967 507

- Management and professional services 442 751 455 455 962 507

- Official representation fund 2 5 5 5 5 0

Other purchases of goods and services 235 135 135 135 135 0

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

Operation and Maintenance of Facilities 2,084 140 75 75 75 0

- Office repairs and alterations 1 140 75 75 75 0

- National Office moving (cabling, furniture, fixtures, 

 

2,083 0 0 0 0 0

Medical Care 25 25 25 25 25 0

- Medical care 25 25 25 25 25 0

Operation and Maintenance of Equipment 1,206 2,267 909 909 1,027 118

- Maintenance of office equipment 169 130 100 100 100 0

- Maintenance of information technology equipment 347 425 260 260 260 0

- Information technology support services 659 1,664 515 515 612 97

- Support of payroll/personnel operations 29 48 34 34 55 21

- Household goods storage (PCS) 2 0 0 0 0 0
20

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 2018 to 2019

Actual Actual Estimated CR Request Change (+/-)

Supplies and Materials $326 $360 $300 $300 $310 $10 

- Office supplies and materials 145 164 148 148 158 10

- Information technology supplies and materials 181 196 152 152 152 0

Equipment $1,407 $1,094 $770 $770 $985 $215 

- Furniture and fixtures 68 155 80 80 100 20

- Information technology hardware/software 1,080 889 655 655 850 195

- Machinery and equipment 259 50 35 35 35 0

Grants, Subsidies and Contributions $400 $900 $399 $399 $0 ($399)

Sub-total appropriated $48,748 $46,650 $48,655 $46,333 $47,200 $867 
21

BUDGET ESTIMATES FISCAL YEAR 2018

FINANCIAL REQUIREMENTS

(in thousands of dollars)

FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 2018 to 2019

Actual Actual Estimated CR Request Change (+/-)

Reimbursable Programs (non-appropriated) $1,711 $1,525 $1,965 $1,965 $1,808 $(157)

- Compensation 879 825 983 983 1,003 20

- Benefits 260 250 282 282 290 8

- Travel 228 240 300 300 300 0

- Communications 0 0 0 0 0 0

- Other contractual services 341 200 390 390 205 (185)

- Supplies and materials 3 10 10 10 10 0

Sub-total of Reimbursable Programs $1,711 $1,525 $1,965 $1,965 $1,808 $(157)

Internal Training and Education (non-appropriated) $824 $1,070 $1,030 $1,030 $1,043 $13

- Compensation 141 144 150 150 153 3

- Benefits 42 48 48 48 49 1

- Seminars, workshops, conferences and training 205 344 344 344 349 5

- New mediator costs 129 175 143 143 147 4

- Tuition 219 140 140 140 140 0

- Other contractual services 9 84 85 85 85 0

- Supplies & materials 5 15 5 5 5 0

- Subscriptions 74 120 115 115 115 0

Sub-total of FMCS Training and Education $824 $1,070 $1,030 $1,030 $1,043 $13

Sub-total of non-appropriated (reimbursable $2,535 $2,595 $2,995 $2,995 $2,851 $(144)

TOTAL RESOURCES $51,283 $49,245 $51,650 $49,328 $50,051 $723 
22

FEDERAL MEDIATION AND CONCILIATION SERVICE

Detail of Total Employment – End of Year

2017 2018 2019

Actual Estimated Requested

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

ES .................................................................... 3 3 3

Subtotal ............................................ 3 4 4

GS-15............................................................... 23 24 25

GS-14............................................................... 123 133 121

GS-13............................................................... 37 36 46

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

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

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

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

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

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

GS-6................................................................. 1 1 2

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

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

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

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

Subtotal ............................................ 220 232 232

Total employment, end of year ..................... 223 ** 236 * 236 *

Full-time equivalent (FTE) usage................. 220 ** 236 * 236 *

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

Average ES Salary........................................... $172,100 $172,288 $175,734

Average GS Level ........................................... 13.10 13.15 13.07

Average GS Salary .......................................... $115,011 $116,560 $118,010

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

* 10 FTE funded by reimbursable revenue

** 9 FTE funded by reimbursable revenue
23

III. Mission and Program Structure

Congress established the Federal Mediation and Conciliation Service (FMCS) in 1947 

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

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

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

conciliation and mediation.” Subsequent acts of Congress and presidential orders have 

expanded the FMCS role to provide mediation services to the federal sector and 

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

as promote and establish labor-management partnerships.

The FMCS commits to:

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

Preventing or minimizing work stoppages by assisting labor and management to 

settle their disputes through mediation;

Advocating collective bargaining, mediation, and voluntary arbitration as the 

preferred process for settling disputes between employer and representatives of 

employees;

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

Fostering the establishment and maintenance of constructive joint processes to 

improve labor-management relationships, employment security, and 

organizational effectiveness.

For more than 70 years, FMCS has provided services that embrace this mission and 

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

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

evolved over time, so, too, has the nature of FMCS work within collective bargaining 

relationships. FMCS today provides a range of services to labor and management, such 

as relationship-development training and training in interest-based bargaining, to help the 

parties deal effectively with disputes that may arise between them without resorting to 

work stoppages. The following section describes FMCS’s comprehensive package of 

core programs and services.
24

A. Collective Bargaining Mediation

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

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

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

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

negotiations for successor collective bargaining agreements. FMCS provides mediation 

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

and state and local governments.

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

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

offers, and persuade the parties to honestly discuss their differences. In FY 2017, FMCS 

mediators were actively involved in more than 3,200 collective bargaining contract 

negotiations in every major industry throughout the United States.

B. Grievance Mediation

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

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

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

preventing unresolved contract interpretation issues from becoming contentious issues in

future contract negotiations. Lengthening contract terms increase the importance of 

resolving contentious issues arising during the term of a contract. In FY 2017, FMCS 

mediated 1,719 grievance mediation cases and helped the parties reach agreement in 

1,224 of these (74 percent).

C. Relationship-Development and Training

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

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

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

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

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

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

efforts more effective.

In FY 2017, FMCS mediators conducted nearly 2,000 training programs with

collective bargaining partners.

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

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

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

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

programs consist of:

Relationship by Objective. Improves the parties’ relationship with one 

another, particularly where the relationship has worsened after a contentious 

representation election, initial contract negotiation, or strike.
25

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.

Interest-Based Bargaining and Interest-Based Problem Solving.

Collective Bargaining and Mediation Training. Trains the parties on 

effective negotiation and communication skills.

D. Conflict Resolution and ADR Services for Government

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

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

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

procedures employed in alternative means of dispute resolution, design conflict 

management systems, build capacity for constructive conflict management, and 

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

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

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

1,200 times in FY 2017. These services included mediation, convening, facilitation, and 

systems design:

Workplace and Employment Disputes. FMCS mediates workplace and 

employment disputes for Federal and state agencies. The majority of these 

disputes concern claims of employment discrimination (EEO), other types of 

personnel issues and workplace conflicts. FMCS accepts individual and multiparty conflicts for mediation.

Disputes Involving Administrative Programs. FMCS also mediates disputes 

between agencies and their “regulated public,” such as whistleblower 

complaints or disputes involving contracts, grants, licenses, enforcement, and 

administrative programs.

Training Persons in the Skills and Procedures Employed in Alternative 

Means of Dispute Resolution. FMCS also provides training in conflict 

resolution to aid in the effective use of alternative dispute resolution throughout 
26

the Federal Government. To that end, FMCS offers both live and web-based 

training on a variety of topics.

Consultation, Evaluation, and Systems Design. FMCS provides professional 

conflict resolution specialists to help agencies design conflict prevention and 

resolution systems to build capacity for constructive conflict management 

systems. Systems design may include an initial consultation, an assessment, 

program design and development, training delivery, and program management 

follow-up.

Facilitation during Decision-Making. Particularly in times of limited budgets, 

FMCS facilitation services can help agencies achieve cost-savings when 

decision-making is delegated to a committee, task force, or other type of group.

FMCS facilitation services, including consultation, convening, training, and the 

actual facilitation, help groups accomplish their tasks within specified time 

frames. Notably, these services can be provided both onsite and virtually, 

another valuable time and cost saving feature of FMCS facilitation services.

Negotiated Rulemaking. Negotiated rulemaking is a process in which a 

government agency invites persons and groups potentially impacted by a 

proposed rule to participate in its drafting. Interested parties who might 

otherwise oppose or challenge the rule are given the chance to participate in its 

formulation, thus reducing post-issuance challenges. The Negotiated 

Rulemaking Act of 1996 authorizes FMCS to convene and facilitate this 

process.

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

multiple agency groups tasked with developing a strategic plan or identified 

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

collaboration skills are essential to achieving successful outcomes.

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

public policy discussions involving Federal agencies and public-private 

stakeholders such as those conducted under the Federal Advisory Committee 

Act (FACA). These multi-party stakeholder discussions can benefit from the 

assistance of a skilled and neutral facilitator experienced in synthesizing 

discussion points and interests, as well as establishing and overseeing meeting 

structures and processes. Training and coaching are also available for 

participants.

E. International Training and Exchange

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

bargaining and conflict resolution around the world. FMCS delivers its international 

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

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

and USAID.

The FMCS international work is a small, but integral, part of its services. FMCS 

helps establish the labor relations institutions that are essential to the smooth functioning 
27

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

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

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

international implications. In FY 2017, FMCS completed training and consultation 

programs in Honduras, Thailand, and Burma (Myanmar). Additionally, FMCS 

conducted web-based training for labor relations professionals in the ready-wear garment 

industry of Bangladesh and met with international delegations from the International 

Visitors Program sponsored by the U.S. Department of State at the FMCS office in 

Washington, D.C. During all these programs, FMCS mediators provided instruction for 

government labor inspectors, labor representatives, employer representatives, government 

officials and other labor dispute stakeholders. They also provided consultative support 

for governments in these countries to assist in their efforts to develop effective dispute 

resolution systems and organizations.

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

foreign delegations visiting the United States and educate them in U.S. labormanagement relations and conflict resolution practices.

F. Arbitration Services

National labor policy favors arbitration over litigation for settling contractual 

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

1,000 independent arbitrators who are qualified to hear and decide disputes over the 

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

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

their case and render a decision. FMCS administers its established policies and 

procedures on arbitration, which also incorporate the Code of Professional Responsibility 

for Arbitrators of Labor-Management Disputes, to which FMCS is a signatory.

During FY 2017, the Office of Arbitration Services processed nearly 12,000 requests

and oversaw the appointment of more than 5,200 arbitrators nationwide.

G. FMCS Institute for Conflict Management

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

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

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

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

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

experienced practitioners who use these skills every day. Federal mediators and privatesector arbitrators comprise the Institute faculty. The Institute runs as a reimbursable 

program and is funded by fees received from training participants.

H. Labor-Management Committee Grants

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

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

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

effectiveness, enhancing economic development or involving workers in decisions 
28

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

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

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

committees to develop innovative joint approaches to workplace problems. In FY 2017, 

FMCS awarded $937,849 in grants.
29

IV. Workload Projections – FY 2018 and FY 2019

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

estimates, accomplishments for 2017, and estimated workloads in 2018 and 2019.
30

WORKLOAD OUTPUTS AND PROJECTIONS

FISCAL YEARS 2013 - 2019

PROGRAM SERVICES

FY 2013

Actual

FY 2014

Actual

FY 2015

Actual

FY 2016

Actual

FY 2017

Estimated

FY 2017

Actual

FY 2018

Estimated

FY 2019

Estimated

1. COLLECTIVE BARGAINING 

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

Assigned Casesi 12,938 12,054 11,636 11,734 12,360 11,280 11,800 11,800

-Private Sector 11,802 10,856 10,620 10,678 11,180 10,465 10,674 10,674

-Public Sector (state and municipal) 843 905 749 738 888 564 847 847

-Federal Sector 293 293 267 318 292 251 279 279

Mediated Casesii 4,122 4,009 3,719 3,540 4,230 3,230 3,883 3,883

-Private Sector 2,826 2,697 2,600 2,435 2,949 2,352 2,707 2,707

-Public Sector (state and municipal) 981 1,020 842 808 1,000 641 918 918

-Federal Sector 315 292 277 297 282 237 259 259

Closed Cases 12,651 12,032 11,644 11,605 12,081 11,261 11,533 11,533

Closed Mediated Cases 3,339 3,299 3,081 2,941 3,466 2,616 3,423 3,423

Activity Rateiii 26% 27.4% 26.5% 25.3% 28.7% 23.2% 29.7% 29.7%

Settled and Closed Mediated Cases 2,807 2,852 2,605 2,516 2,955 2,278 2,954 2,954

Percentage of mediated cases settled w/FMCSiv 84% 86.5% 84.6% 85.5% 85.3% 87.1% 86.3% 86.3%

Activity rate in significant casesv 47% 40.6% 42.6% 38.7% 45.0% 36.4% 45.0% 50.0%

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

Assigned Cases 1,872 1,762 1,729 1,713 1,750 1,719 1,825 1,825

Mediated Cases 1,809 1,704 1,676 1,670 1,708 1,650 1,779 1,779

-Private Sector 1,398 1,330 1,319 1,269 1,334 1,283 1,387 1,387

-Public Sector (state and municipal) 267 256 240 267 253 229 265 265

-Federal Sector 144 118 117 134 121 138 128 128

Settled GM Cases 1,383 1,308 1,221 1,264 1,301 1,224 1,336 1,336

Percentage of cases settled w/ FMCSvi 76% 76.8% 72.9% 75.7% 76.2% 74.2% 75.1% 75.1%
31

PROGRAM SERVICES

FY 2013

Actual

FY 2014

Actual

FY 2015

Actual

FY 2016

Actual

FY 2017

Estimated

FY 2017

Actual

FY 2018

Estimated

FY 2019

Estimated

3. RELATIONSHIP-DEVELOPMENT AND 

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

Number of training programs provided 2,027 1,884 1,923 1,941 2,000 1,956 2,200 2,200

-Private Sector 1,174 1,111 1,090 1,107 1,192 1,179 1,298 1,298

-Public Sector (state and municipal) 533 436 472 471 491 410 539 539

-Federal Sector 320 337 361 363 317 367 363 363

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

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

-Federal Sector 1,089 884 1,152 1,057 1,177 1,185 1,175 1,175

-Public Sector (state and municipal) 1 6 3 3 6 4 5 5

-Private 28 20 38 16 17 11 19 19

Settled ADR Cases 488 410 536 479 562 594 556 556

Percent of ADR cases settled w/ FMCSvii 44% 45.1% 44.9% 44.5% 46.8% 49.5% 46.4% 46.4%

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

Outreach casesviii 2,911 2,710 2,722 3,049 3,000 2,837 2,900 2,900

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

Number of panels issued 13,361 13,179 12,744 12,250 12,500 11,836 12,185 12,185

Number of arbitrators appointed 6,020 5,836 5,415 5,296 5,391 5,247 5,264 5,264

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

Number of grants funded 0 0 8 3 10 11 3 0

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

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

Number of participants 188 114 151 142 180 189 190 190
32

V. Annual Performance Plan

Performance expectations for each service area are guided by the FMCS current fiveyear strategic plan. For each strategic goal, the FMCS has identified a number of 

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

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

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

accomplishments for 2017, and performance goals for 2018 and 2019.
33

Strategic Goal #1: Mediation

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

bargaining negotiations.

Objective:

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

Action:

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

industry, and large and high-impact bargaining units.

Strategies:

Encourage labor and management leaders to employ mediation in their contract 

negotiations.

Pursue FMCS joint problem-solving initiatives during the term of the agreement.

Expected Outputs:

Increased mediator case activity rates.

Increased proportion of cases with meetings held prior to contract expiration date.

Discussion:

Collective bargaining mediation represents the core of the FMCS mission and its 

most publicly visible work. An independent study conducted for the FMCS found that

mediation prior to a contract’s expiration date significantly reduces the duration of any 

work stoppage that occurs. Previously, three separate studies of matched bargaining pairs 

found that FMCS mediation was also an important factor in preventing work stoppages 

from occurring in the first place.

As a result of these studies, the FMCS believes that early and ongoing contact with 

the parties to a labor contract negotiation is imperative in reducing the number and 

duration of work stoppages. This is particularly true in collective bargaining cases that 

involve: an initial contract; national security; the health care industry; large bargaining 

units; or those cases that have the potential for permanent shutdowns or disruptions to the 

community, work force, or interstate commerce.

The FMCS evaluates its success in these areas by looking at how many negotiations 

use mediation services, whether or not a work stoppage occurred, the duration of any 

stoppage, and the timing of mediators’ involvement. On an aggregate basis, the FMCS 

also estimates the financial cost of work stoppages that actually occur and the value of 

work stoppages that its mediators are able to prevent or shorten.
34

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

Actual ........ 26.4 27.4 28.8 25.3 23.2 30.0 30.0

Target ........ 30.0 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

Actual ........ 33.6 33.5 34.2 34.6 29.6 45.0 45.0

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

* Estimated

20

25

30

35

40

2013 2014 2015 2016 2017 2018* 2019*

CBM Activity Trend

20

30

40

50

60

2013 2014 2015 2016 2017 2018* 2019*

Actual Trend
35

Strategic Goal #2: Building Problem-Solving Relationships

Improve labor-management relationships.

Objective:

Use collaborative dispute resolution processes to manage workplace conflict.

Actions:

Provide techniques and information that help parties improve their collective 

bargaining relationship, with particular emphasis on implementing changes to 

health care benefits.

Deliver internally sustainable dispute resolution systems.

Educate labor and management leaders at home and abroad in the art of building 

and maintaining labor-management partnerships.

Strategy:

Promote the use of FMCS programs and outreach emphasizing joint initiatives on 

significant issues likely to impact collective bargaining.

Expected Output:

Increased customer satisfaction with FMCS educational products and services.

Discussion:

Relationship development and training and a number of related activities are designed 

to help the parties to a collective bargaining agreement better understand the issues and 

external forces affecting their collective bargaining relationship and to develop internal 

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

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

the FMCS’s work in this area.

The continued success of American employers and employees in a globally 

competitive arena requires a high level of cooperation between labor and management.

This is particularly true with respect to new circumstances confronting both parties in the 

collective bargaining relationship. Competitive issues can be both complex and subtle 

and require creative solutions that address unique challenges.

The FMCS is committed to delivering to its customers the best possible information, 

analysis, practices, and solutions. Through its individual program evaluations, the FMCS 

is constantly seeking to improve its core curriculum.
36

Strategic Goal #3: Resolving Mid-Term Disputes

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

bargaining agreements.

Objectives:

Assist parties to voluntarily resolve contract-based disputes.

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

voluntarily resolve a contract-based dispute.

Actions:

Increased utilization of FMCS services to resolve contract-based disputes.

Maintain roster of experienced arbitrators.

Encourage on-line arbitration referral service case filings.

Strategies:

Advocate mediation and arbitration as the preferred methods for settling disputes 

between parties in a collective bargaining relationship.

Facilitate joint, collaborative, problem-solving events on an ongoing basis.

Expected Outputs:

Increase the proportion of settled grievance mediation cases.

Increase customer satisfaction with quality of arbitration service.

Discussion:

Grievance mediation, joint problem-solving facilitation, and arbitration are three 

approaches for resolving disputes that may arise from differing interpretations of a labor 

contract’s terms and conditions. Grievance mediation and joint problem-solving 

facilitation are voluntary processes that rely upon consensus building. Arbitration is a 

structured process that provides a final and binding determination. All three approaches 

are designed to reduce the need for expensive and time-consuming court litigation, and 

resolve disputes before they negatively affect the collective bargaining relationship.

Increasing the FMCS presence among groups that have not traditionally used its 

services is one way to build healthier collective bargaining relationships. The FMCS 

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

bargaining activities with less disruption and animosity.

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

provide a good indication of how well FMCS mediators are able to facilitate agreements. 

Likewise, favorable customer evaluations of the arbitrator referral service help the FMCS 

improve the quality of the service.
37

Resolving Mid-Term Disputes Outputs and Performance Measures

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

collective bargaining agreements.

Proportion of active grievance mediation cases with settlement reached

Agreement Reached in FY / Cases Closed in FY

Actual ....... 76.5 76.8 72.9 75.7 74.2 75.0 75.0

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

* Estimated

65

70

75

80

85

2013 2014 2015 2016 2017 2018* 2019*

Actual Trend
38

Strategic Goal #4: Promoting ADR

Resolve regulatory / enforcement policy disputes and statute-based workplace disputes.

Objectives:

Use employment mediation as an alternative to litigation.

Use problem-solving processes to resolve regulatory/ policy based disputes.

Action:

Increase number and variety of dispute mediation services provided to 

government agencies, including, but not limited to, employment mediation, 

regulatory negotiations, public policy disputes, systems design, skills 

development and training, facilitation of inter- and intra-Agency cooperation and 

collaboration, mediator coaching and mentoring.

Strategy:

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

settling non-collective bargaining disputes.

Expected Outputs:

Increase the number of mediated settlements in employment mediation cases.

Increase the number of regulatory/policy disputes resolved through facilitated 

processes.

Discussion:

The FMCS alternative dispute resolution (ADR) work is defined by the 

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

that do not result from a collective bargaining relationship. Under the Act, the FMCS is 

generally limited to work in the Federal sector, but may include state or local entities if 

the dispute is related to a Federal rule or regulation.

Using traditional dispute resolution vehicles, such as the courts or other statutory 

processes, may take several years and cost hundreds of thousands of dollars in legal fees

and court costs, and require significant resource expenditures from the affected parties.

In addition, imposed outcomes from utilization of these processes are unpredictable and 

the conditions present when the dispute arose may have changed dramatically. In 

regulatory matters, voluntary resolution of a single issue by multiple parties through a 

facilitated consensus-based process will normally offset any costs incurred.

By increasing the number of individual employment cases assigned, conflict 

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

achieving an increased number of resolved matters, FMCS seeks to provide a costeffective alternative to litigation and promote better government decision-making.
39

Promoting ADR Outputs and Performance Measures

Resolve statute- or regulation-based workplace disputes.

Proportion of active ADR cases with settlement reached

Agreement Reached in FY / Cases Closed in FY

Actual ....... 43.6 45.1 44.9 44.5 49.5 50.0 50.0

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

* Estimated

40

45

50

55

60

2013 2014 2015 2016 2017 2018* 2019*

Actual Trend
40

Endnotes

 

i

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

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

all cases providing notices are assigned. Actual 2017 FMCS case intake was more than 19,400. ii

 Mediated cases represent the number of cases in the FY where mediators have become active in the 

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

total closed assignments.

iv Defined as the number of mediated cases settled divided by the total number of mediated cases. v

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

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

the number of closed GM assignments.

vii Defined as the number of ADR cases settled divided by the number of mediated cases closed.

viii FMCS requires all mediators to engage in outreach efforts. These kinds of activities include nonbargaining meetings with labor and management representatives, attendance at conferences, meetings 

with local and state officials to offer FMCS services, and presentations designed to increase public 

knowledge.