2007 

1
1

Message from the Director 

Collective bargaining relationships in the U.S. have been evolving in respons

competitive and globalized economy. From one narrow perspective, relationships

and management appear to have entered a remarkably peaceful era. In 2007, our Agency

recorded only 173 work stoppages ending in the fiscal year, the fewe

drop of nearly 95 percent from 1977. However, despite the statistical appearance 

relations and collective bargaining in genera es

pressure on traditional collective bargaining relationships. 

Today’s tough business environment of rising raw materials prices, tightening c

escalating benefit costs and fierce global com

zero-sum game. Building a new labor-management model based on cooperation,

problem-solving requires a sustained level of effort. Changing long-held attitudes a

always difficult, but I would argue that the complexity of the issues and the stakes 

face today demands a new way of thinking. 

The increasing popularity of Voluntary Employee Benefit Associations (VEBAs) a

funding retiree benefits underscores this point. While a number of extrem

negotiations this past year hinged upon the successful implementation of th

arrangements, merely adopting a creative solution to a problem does not necess

labor and management have truly transformed their collective bargaining relations

would argue that introducing a new element, such as a VEBA, into an existing

collective bargaining relationship could be disastrous without careful preparation.

the zero-sum mentality not only requires a creative process, but g proc

where I believe tha

e to yper-

 between labor 

st ever in our history and a 

of calm, labor 

l are rapidly evolving, which plac extraordinary 

redit markets, 

petition is changing collective bar

that both sides 

s a vehicle for 

ely important 

ese complex financial 

arily mean that 

hip. In fact, I 

 Aba

 a stron e

Through its national organization of skilled mediators, FMCS offers a comprehensive package of 

services and programs designed to strengthen collective bargaining relationships and reduce 

conflict. These services include collective bargaining mediation, grievance mediation, programs 

for repairing broken bargaining relationships, and training in communication and dispute 

resolution. When conflict does occur, FMCS works aggressively to minimize resultant costs—

which can be significant. Using a model developed for the Agency in 2005 by the Employment 

Policy Foundation, FMCS estimates that work stoppages over the past two years cost employees 

a h

nships. 

gaining from a 

 trust and joint 

nd behavior is 

 and complex 

ndoning 

ss, and this is 

t FMCS offers a valuable service to collective bargaining relatio

FMCS Director 

Arthur F. Rosenfeld 

Report for 

Fiscal Year 2007 

FMCS Director 

Arthur F. Rosenfeld 

FMCS Director 

Arthur F. Rosenfeld 
2

ancillary businesses is estimated to have cost an additional $1.6 billion during this p

FMCS also offers services and programs designed to resolve contract-based disp

arise during the term of a collective bargaining agreement. In recent years, the A

both a rise in the number of individual claims and increased use of our mediators 

this type of mid-term conflict. We undertake this work not only to avoid a potentia

nation’s court system, but also as an opportunity to repair to the relationship betw

and employees and to prevent disputes from poisoning collective bargaining. 

The FMCS is not a large agency. We take our mandate seriously, and strongly believe that, 

despite our size, we will continue to make a significant contribution to the nation’s well being. 

Collective bargaining has been, and will continue to be, a critical component of this country’s 

economic success, particularly as the process evolves into a joint exercise in creative and 

collaborative problem solving by labor and management. 

and businesses an estimated $1.5 billion in lost wages and employer profits. Disruption among 

eriod. 

utes that may 

gency has seen 

to help resolve 

l burden to the 

een employers 

Arthur F. Rosenfeld 

 Director 
3

FY 2007 Agency Services 

has delivered 

’s unionized 

id costly work 

l or national 

 in the Laborvide conflict 

s. Our goal is 

 out of labor 

prove labor-management relations. The core activity of the Agency is 

collective bargaining mediation; a voluntary process in which mediators serve as third-

 settlement of issues in the negotiation of collective 

 cost of work 

ate collective 

 for initial contract negotiations—which take place between an 

yees—and for 

des mediation 

agencies, and 

entify alternative solutions and compromises, 

where appropriate, control the critical timing of offers, and persuade 

ediators were 

n every major 

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

over the terms and conditions of a collective bargaining agreement. Agency mediators 

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

unresolved contract interpretation issues from spilling over into future contract 

negotiations. Lengthening contract terms increase the importance of resolving contentious 

issues arising during the term of a contract. In FY 2007, FMCS mediated 1,753 grievance 

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

Agency Mission 

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

neutral and confidential conflict resolution assistance to the nation

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

stoppages and minimize their potentially devastating effects on regiona

commerce. The FMCS was created by Congress as an independent agency

Management Relations Act of 1947. Our highly trained mediators pro

resolution services to the nation’s employers and their unionized employee

to prevent or minimize interruptions to the free flow of commerce that grow

disputes and to im

party neutrals to facilitate the

bargaining agreements. 

A. Collective Bargaining Mediation 

Through collective bargaining mediation, FMCS helps avert or minimize the

stoppages to the U.S. economy. The Agency’s core work is to medi

bargaining negotiations

employer and a newly certified or recognized union representing its emplo

negotiations for successor collective bargaining agreements. FMCS provi

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

state and local governments. 

During mediation, the mediator’s task is to id

encourage settlement 

the parties to honestly discuss their differences. In FY 2007, FMCS m

actively involved in over 5,300 collective bargaining contract negotiations i

industry throughout the United States. 

B. Grievance Mediation 
4

 agreement is 

lding training 

ing labor and 

e use of these 

tion services 

le basis. The 

 Act of 1990, 

S’ role as a 

pand the use 

eral government, reduce litigation 

costs, and promote better government decision-making. The Agency also provides 

 sector to resolve workplace disputes falling outside 

t opportunity 

ng collective 

ork is a small, 

ies often struggle to compete 

abor relations 

mies. These 

miliarity with 

effective in 

S. companies 

ing countries. 

y advocating 

nd productive 

ove 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. 

C. Relationship-Development and Training 

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

another important goal of the Agency. The Agency’s relationship-bui

programs are designed to improve labor-management relationships by help

management to develop collaborative problem-solving approaches. Effectiv

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 media

to the federal sector and to state and local governments on a cost-reimbursab

Administrative Dispute Resolution Act of 1990, the Negotiated Rulemaking

and the Administrative Dispute Resolution Act of 1996 expanded FMC

provider of these services. The legislative intent behind these acts was to ex

of alternative dispute resolution throughout the Fed

employment mediation to the private

of the traditional collective bargaining context, i.e., equal employmen

disputes. In FY 2007, FMCS mediated 1,060 employment cases. 

E. International Training and Exchange 

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

bargaining and conflict resolution around the world. FMCS’ international w

but integral, part of its services. Emerging market econom

effectively in a globally integrated marketplace. FMCS helps establish the l

institutions that are essential to the smooth functioning of free market econo

programs are also a knowledge-sharing experience: FMCS mediators gain fa

complex issues affecting the global economy and, as a result, are more 

resolving labor-management disputes with international implications. 

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

and workers by strengthening the rule of law and workers' rights in develop

In addition to supporting U.S. companies and workers in the global market b

core labor standards for all nations, the program helps create the stable a

work forces that are needed to attract foreign investment and impr
CS’ Office of 

nt arbitrators 

pplication of 

ishes a list of 

er a decision. 

ffice of Arbitration Services processed over 16,200 requests for 

rs on the FMCS roster heard and decided nearly 

room format. 

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. 

F. Arbitration Services 

National labor policy favors arbitration for settling contractual disputes. FM

Arbitration Services maintains a roster of approximately 1,400 independe

who are qualified to hear and decide disputes over the interpretation or a

collective bargaining agreements. Upon request from the parties, FMCS furn

names from which they may choose an arbitrator to hear their case and rend

During FY 2007, the O

arbitration panels nationwide. Arbitrato

2,200 labor arbitration cases. 

G. FMCS Institute for Conflict Management 

The FMCS Institute for Conflict Management provides training and educatio

management practitioners from multiple organizations in an off-site class

The Institute offers 

n to labor and 

5
Mediation Services Program Data

PROGRAM SERVICES FY 2004

6

FY 2005 FY 2006 FY 2007

TIVE BARGAINING MEDIATION....................

,10 5,072 14,663

or 38 ,596 ,539 13,245

tor (state and municipal) 295 ,16 1,219 1,107

tor 460 34 314 311

748 ,21 5,484 5,329

tor 274 ,87 3,874 3,907

ate and municipal) 077 ,08 1,319 1,145

397 256 291 277

,92 5,664 14,478

595 ,084 4,486 4,426

8% 0% 29% 31%

7 8 5 3,864 3,818

f mediated cases settled through FMCS4 2% 87% 86% 86%

in significant cases5 1% 47% 45% 51%

ION ................................................. 

es 639 ,705 1,632 1,768

544 ,62 1,625 3

168 ,232 1,219 1,282

205 26 270 316

tor 171 12 136 155

264 ,212 1,219 1,254

f cases settled through FMCS6 2% 72% 75% 74%

INI

aining programs provided 281 ,08 2,445 2,548

565 ,273 1,552 1,591

c Sector (state and municipal) 599 708 730 730

tor 117 104 163 227

N ............................................

596 08 1,022 1,060

417 91 993 1,038

 -Public Sector (state and municipal) 5 31 13 5

 -Private 174 60 16 17

 Settled EM Cases 718 484 523 532

 Percent of EM cases settled through FMCS7 45% 48% 51% 50%

3,859 3,847

 

1. COLLEC

 Assigned Cases1 18,493 17 2 1

 -Private Sect 16,7 15 13

 -Public Sec 1, 1 0 

 -Federal Sec 6 

 Mediated Cases2 4, 5 5 

 -Private Sec 3, 3 3 

 -Public Sector (st 1, 1 6 

 -Federal Sector 

 Closed Cases 16,215 13 8 1

 Closed Mediated Cases 4, 4

 Activity Rate3 2 3

 Settled and Closed Mediated Cases 3, 6 3,5 7 

 Percentage o 8

 Activity rate 5

2. GRIEVANCE MEDIAT

 Assigned Cas 1, 1

 Mediated Cases 1, 1 1 1,75

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

-Private Sector 

cipal) 

1, 1

 -Public Sector (state and muni 3 

 -Federal Sec 6 

 Settled GM Cases 1, 1

 Percentage o 8

3. RELATIONSHIP-DEVELOPMENT AND TRA NG.....

 Number of tr 2, 2 5 

 -Private Sector 1, 1

 -Publi

 -Federal Sec

4. EMPLOYMENT MEDIATIO

 Mediated Cases 1,

1,

1,0

 -Federal Sector 7 

 Outreach cases8 4,741 3,513 

 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 2007 FMCS case intake exceeded 22,000. 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. 
Work Stoppage Information 

2003 4 005 2006 2007 200 2

Work stoppages carried from preceding FY 41 29 25 52 31 

Work stoppages beginning within FY 277 269 289 247 162 

Work stoppages closed within FY 289 273 262 268 173 

Work stoppages open at end of FY 29 25 52 31 20 

Average duration of work stoppages in clo

(number of da

sed c

ys) .5 4 70.9 63.1 ases 60 76.7 1.1 

Estimated number of worker-hours lost due to work 

stoppages ) 17,078 71,501 18,064 25,175 29,734 (1,000s

Work Stoppage Cost Information

Direct ire

ts 

otal 

Costs osts 

Ind ct T

Cos C

Year 0s) 000s 1,000s) ($1,00 ($1, ) ($

1999 883,01 896, 1,779,490 0 481 

2000 3,350,203 3,67 7,022,355 2,152 

2001 5,484 47 971,484 49 6,000 

2002 3,522 46 824,811 36 1,289 

2003 372 678 329,595 702,273 ,

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

2005 488 4 938,812 ,075 50,737

2006 725 6 1,411,648 ,180 86,468 

2007 801 9 1,732,422 ,314 31,108 

Savings to Parties Attribu Me table to diation

Reduced 

nce

uc

atio

otal 

Incide Dur vings

Red ed T

n Sa

Year ($1,000s) ($1,00 1,000s) 0s) ($

1999 6,974 21 968,122 75 1,149 

2000 2,52 30 2,295,621 1,99 9 3,092 

2001 667,206 60 727,578 ,372 

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 

7
Arbitration Services Program Data

Activity 2003 2004 0 006 2007 20 5 2

Panel Requests 17,332 82 ,37 5,572 14,287 16,3 15 0 1

Panels Issued9 19,02 8,033 16 6,854 16,264 3 1 ,787 1

Arbitrators Appointed 8,595 5 7,592 6,860 6,485 7,87

 

Activity Charged For 

Travel Days .48 .45 .46 .46 .45 

Hearing Days 1 09 1.15 1.11 1.10 .15 1.

Study Days 2.35 2.37 2.40 2.40 2.34 

Total 3.98 3.91 4. 3.97 3.89 01 

 

Average Charges 

Per Diem Rate $764 $802 $836 $860 $883 

Amount of Fee $3,048 $3,197 $3,396 $3,605 $3,571 

Amount of Expenses $364 $344 $336 $335 $359 

Total Charged $3,412 $3,542 $3,732 $3,940 $3,929 

 

8

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. 
2003 2 4 005 2006 2007 00 2

Total Number of Issues 2,314 581 2,629 2,473 2,172 2,

 

General Issues 506 417 308 320 243 

 Overtime Other Than Pay10 

 Distribution of Overtime 35 41 2 6 1 

 Compulsory Overtime 9 3 2 1 1 

 Other Overtime 12 1 4 4 0 

Seniority 

 Promotion & Upgrading 63 42 26 40 20 

 Layoff Bumping & Recall 71 69 57 39 32 

 Transfer 14 9 0 0 2 

 Other Seniority 35 15 8 24 19 

 Union Officers11 13 21 0 1 0 

 Strike & Lockout 1 2 1 0 0 

itions12 Working Cond 19 20 12 23 16 

 Discrimination 17 18 18 18 13 

 Management Rights 71 61 72 85 82 

 Scheduling of Work 47 61 62 50 45 

 Work Assignments 99 54 44 29 12 

 

Economic Wage Rates & Pay Issues 233 209 167 178 157 

 Wage Issues 42 95 134 156 154 

 Rate of Pay 60 33 7 1 1 

 Severance Pay 5 1 2 1 0 

 Reporting, Call- in & Call-back Pay 10 6 0 0 0 

 Holidays & Holiday Pay 21 14 8 7 0 

 Vacations & Vacation Pay 27 26 0 4 0 

 Incentive Rates & Standards 15 9 3 1 0 

 Overtime Pay 53 25 13 8 2 

 

Fringe Benefits Issues 112 104 100 127 76 

 Health & Welfare 61 46 47 48 25 

 Pensions 11 8 7 19 11 

 Other Fringe Issues 40 50 46 60 40 

 

Discharge & Disciplinary Issues 1,091 996 937 913 728 

 

Technical Issues 97 69 47 59 54 

 Job Posting & Bidding 43 39 43 43 38 

 Job Evaluation 21 14 1 14 11 

 Job Classification 33 16 3 2 5 

 

9

10 Overtime pay issues included under this category are economic, wage rates and pay issues 11 Included in this classification are issues concerning super seniority and union business. 12 This classification also includes issues concerning safety.
2003 2004 2006 2007 2005

Scope of Agreement 53 58 50 28 31 

 Subcontracting 36 44 42 24 24 

 Jurisdictional Disputes 5 7 7 4 7 

 Foreman, Supervision, etc. 9 7 1 0 0 

 Mergers, Consolidations, Accretion, Other Plants 3 0 0 0 0 

 

Arbitrability Issues 361 289 219 191 275 

 Arbitrability of Grievances 139 96 38 26 23 

 Procedural 102 62 68 96 123 

 Substantive 25 18 28 37 41 

 Procedural & Substantive 12 16 10 17 24 

 Other Arbitrability Questions 0 0 0 0 0 

 Not Elsewhere Classified 83 97 75 15 64 

10