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2008 
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 Message from the Director 

It has been a challenging year for labor relations in the United States. Workers experienced 

heightened concern for their personal financial situations and job security. Management focused 

intensely on competitiveness issues and the resources needed to weather a global financial crisis. 

Faced with intense global competition, many U.S. companies have moved to low cost off-shore 

operations. And the perilous financial conditions have caused other U.S. companies to downsize, 

dramatically increasing unemployment numbers in this country. Given the confluence of global 

competition and financial unrest, not surprisingly we have noted an increase in labor-management 

tension at the bargaining table. Negotiations have become more stressful and challenging. 

Paradoxically, though tough times benefit from better labor-management cooperation, often the 

opposite happens, with the parties regressing to a hardened “us-versus-them” mentality at the 

bargaining table. Granted, given the demands of the current environment, it is difficult for 

bargaining parties to find spare time to focus on resolving problems in labor-management 

relations. However, today’s business environment of rising raw materials prices, tightening credit 

markets, escalating benefit costs and fierce global competition calls for labor-management 

collaboration, not confrontation. Building a labor-management relationship based on 

cooperation, trust and joint problem-solving requires a sustained level of effort, but tough times 

demand no less. 

In these difficult times, FMCS plays a critical role. We provide training for employers and 

unions in the best practices that are essential to successful collective bargaining. Among our 

training activities are specific programs that FMCS mediators deliver to improve union-employer 

relationships and thus the collective bargaining process. In other words, many times, even before 

negotiations begin, we help the parties understand how better to communicate and to manage or 

perhaps avoid conflict. I'm not suggesting that all labor-management conflict is negative. 

However, unmanaged conflict is nearly always harmful, and it is certainly possible, and definitely 

preferable, to help the parties find ways to better manage conflict. 

FMCS Director 

Arthur F. Rosenfeld 

Report for 

Fiscal Year 2008 

FMCS Director 

Arthur F. Rosenfeld 

FMCS Director 

Arthur F. Rosenfeld 
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As we head into another potentially difficult year for American workers and the companies that 

employ them, it is important for all to remember that mediation is a proven help in resolving labor 

disputes and averting disruptions to our economy that affect workers, their families, and 

communities. America has always responded strongly in trying times. We have always 

overcome adversity, and will do so again. FMCS is prepared to play its part in aiding labor and 

management in creating and sustaining a resilient, prosperous economy. 

Arthur F. Rosenfeld 

Director 
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 FY 2008 Agency Services 

Agency Mission 

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

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

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

stoppages and minimize their potentially devastating effects on regional or national 

commerce. The FMCS was created by Congress as an independent agency in the LaborManagement Relations Act of 1947. Our highly trained mediators provide conflict 

resolution services to the nation’s employers and their unionized employees. Our goal is 

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

disputes and to improve labor-management relations. The core activity of the Agency is 

collective bargaining mediation; a voluntary process in which mediators serve as thirdparty neutrals to facilitate the settlement of issues in the negotiation of collective 

bargaining agreements. 

A. Collective Bargaining Mediation 

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

stoppages to the U.S. economy. The Agency’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 2008, FMCS mediators were 

actively involved in over 4,800 collective bargaining contract negotiations in every major 

industry throughout the United States. 

B. Grievance Mediation 

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

over the terms and conditions of a collective bargaining agreement. 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 2008, FMCS mediated 1,728 grievance 

mediation cases and helped the parties reach agreement in 1,299 of these. 
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C. Relationship-Development and Training 

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

another important goal of the Agency. 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. Effective use of these 

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

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

efforts more effective. 

D. Employment Mediation 

Outside the collective bargaining arena, FMCS provides employment mediation services 

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

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

and the Administrative Dispute Resolution Act of 1996 expanded FMCS’ role as a 

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

of alternative dispute resolution throughout the Federal government, reduce litigation 

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

employment mediation to the private sector to resolve workplace disputes falling outside 

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

disputes. In FY 2008, FMCS mediated 1,220 employment cases. 

E. International Training and Exchange 

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

bargaining and conflict resolution around the world. FMCS’ international work is a small, 

but integral, part of its services. Emerging market economies often struggle to compete 

effectively in a globally integrated marketplace. FMCS helps establish the labor relations 

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

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

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

resolving labor-management disputes with international implications. 

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

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

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

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

work forces that are needed to attract foreign investment and improve living conditions. 

In addition to industrial relations, FMCS mediators assist with rule of law initiatives, 

thereby helping to support economic growth and investment. These initiatives include 

mediation training and working with NGOs and other civil society organizations to 

develop mediation and other FMCS ADR programs. FMCS’ international program 

operations are reimbursed and are funded in part by a number of foreign and U.S. 

agencies, including the U.S. Department of Labor, the U.S. Department of State, the U.S. 

Agency for International Development, and the International Labor Organization. 
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F. Arbitration Services 

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

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

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

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

names from which they may choose an arbitrator to hear their case and render a decision. 

During FY 2008, the Office of Arbitration Services processed nearly 15,900 requests for 

arbitration panels nationwide. Arbitrators on the FMCS roster heard and decided nearly 

2,100 labor arbitration cases. 

G. FMCS Institute for Conflict Management 

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

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

The Institute offers training in practical conflict resolution skills, collective bargaining, 

arbitrator and arbitration skills-building, facilitation process skills, multi-party facilitation, 

cultural diversity, equal employment opportunity mediation skills, and workplace violence 

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

from training participants. 
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Mediation Services Program Data

PROGRAM SERVICES FY 2005 FY 2006 FY 2007 FY 2008

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

 Assigned Cases117,102 15,072 14,663 14,308

 -Private Sector 15,596 13,539 13,245 12,914

 -Public Sector (state and municipal) 1,160 1,219 1,107 1,083

 -Federal Sector 346 314 311 311

 Mediated Cases25,215 5,484 5,329 4,836

 -Private Sector 3,873 3,874 3,907 3,437

 -Public Sector (state and municipal) 1,086 1,319 1,145 1,145

 -Federal Sector 256 291 277 254

 Closed Cases 13,928 15,664 14,478 13,480

 Closed Mediated Cases 4,084 4,486 4,426 3,914

 Activity Rate330% 29% 31% 29%

 Settled and Closed Mediated Cases 3,557 3,864 3,818 3,396

 Percentage of mediated cases settled through FMCS4 87% 86% 86% 87%

 Activity rate in significant cases5 47% 45% 51% 38%

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

 Assigned Cases 1,705 1,632 1,768 1,749

 Mediated Cases 1,621 1,625 1,753 1,728

 -Private Sector 1,232 1,219 1,282 1,296

 -Public Sector (state and municipal) 263 270 316 314

 -Federal Sector 126 136 155 118

 Settled GM Cases 1,212 1,219 1,254 1,299

 Percentage of cases settled through FMCS6 72% 75% 74% 75%

3. RELATIONSHIP-DEVELOPMENT AND TRAINING.....

 Number of training programs provided 2,085 2,445 2,548 2,356

 -Private Sector 1,273 1,552 1,591 1,390

 -Public Sector (state and municipal) 708 730 730 712

 -Federal Sector 104 163 227 254

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

 Mediated Cases 1,008 1,022 1,060 1,220

 -Federal Sector 917 993 1,038 1,205

 -Public Sector (state and municipal) 31 13 5 11

 -Private 60 16 17 4

 Settled EM Cases 484 523 532 576

 Percent of EM cases settled through FMCS7 48% 51% 50% 47%

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

 Outreach cases8

3,513 3,859 3,847 3,347

 

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 2008 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. 
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Work Stoppage Information 

2004 2005 2006 2007 2008 

Work stoppages carried from preceding FY 29 25 52 31 19 

Work stoppages beginning within FY 269 289 247 164 193 

Work stoppages closed within FY 273 262 268 176 181

Work stoppages open at end of FY 25 52 31 19 31 

Average duration of work stoppages in closed cases 

(number of days) 76.7 41.1 70.9 63.1 51.2 

Estimated number of worker-hours lost due to work 

stoppages (1,000s) 71,501 18,064 25,175 29,734 20,147 

Work Stoppage Cost Information 

Direct 

Costs 

Indirect 

Costs 

Total 

Costs 

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

1999 883,010 896,481 1,779,490 

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

2001 495,484 476,000 971,484 

2002 363,522 461,289 824,811 

2003 372,678 329,595 702,273 

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

2005 488,075 450,737 938,812 

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

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

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

 

Savings to Parties Attributable to Mediation

Reduced 

Incidence

Reduced 

Duration

Total 

Savings

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

1999 756,974 211,149 968,122 

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

2001 667,206 60,372 727,578 

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

2003 717,239 224,287 941,525 

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

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

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

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

2008 1,155,903 (501,807) 654,096 
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Arbitration Services Program Data

Activity 2004 2005 2006 2007 2008 

 

Panel Requests 16,382 15,370 15,572 14,287 14,444 

Panels Issued9 18,033 16,787 16,854 16,264 15,717 

Arbitrators Appointed 7,875 7,592 6,860 6,485 6,568

 

Activity Charged For 

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

Hearing Days 1.09 1.15 1.11 1.10 1.07 

Study Days 2.37 2.40 2.40 2.34 2.43 

Total 3.91 4.01 3.97 3.89 3.95 

 

Average Charges 

Per Diem Rate $802 $836 $860 $883 $913 

Amount of Fee $3,197 $3,396 $3,605 $3,571 $3,780 

Amount of Expenses $344 $336 $335 $359 $391 

Total Charged $3,542 $3,732 $3,940 $3,929 $4,171 

 

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 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.
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2004 2005 2006 2007 2008 

Total Number of Issues 2,581 2,629 2,473 2,172 2,066 

 

General Issues 417 308 320 243 267 

 Overtime Other Than Pay10 

 Distribution of Overtime 41 2 6 1 1 

 Compulsory Overtime 3 2 1 1 0 

 Other Overtime 1 4 4 0 2 

Seniority 

 Promotion & Upgrading 42 26 40 20 26 

 Layoff Bumping & Recall 69 57 39 32 36 

 Transfer 9 0 0 2 1 

 Other Seniority 15 8 24 19 44 

 Union Officers11 21 0 1 0 0 

 Strike & Lockout 2 1 0 0 1 

 Working Conditions12 20 12 23 16 15 

 Discrimination 18 18 18 13 14 

 Management Rights 61 72 85 82 77 

 Scheduling of Work 61 62 50 45 39 

 Work Assignments 54 44 29 12 11 

 

Economic Wage Rates & Pay Issues 209 167 178 157 146 

 Wage Issues 95 134 156 154 135 

 Rate of Pay 33 7 1 1 2 

 Severance Pay 1 2 1 0 0 

 Reporting, Call- in & Call-back Pay 6 0 0 0 1 

 Holidays & Holiday Pay 14 8 7 0 2 

 Vacations & Vacation Pay 26 0 4 0 0 

 Incentive Rates & Standards 9 3 1 0 5 

 Overtime Pay 25 13 8 2 1 

 

Fringe Benefits Issues 104 100 127 76 63 

 Health & Welfare 46 47 48 25 24 

 Pensions 8 7 19 11 6 

 Other Fringe Issues 50 46 60 40 33 

 

Discharge & Disciplinary Issues 996 937 913 728 762

 

Technical Issues 69 47 59 54 28 

 Job Posting & Bidding 39 43 43 38 18 

 Job Evaluation 14 1 14 11 9 

 Job Classification 16 3 2 5 1 

 

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.

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 This classification also includes issues concerning safety.
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2004 2005 2006 2007 2008 

Scope of Agreement 58 50 28 31 31 

 Subcontracting 44 42 24 24 27 

 Jurisdictional Disputes 7 7 4 7 4 

 Foreman, Supervision, etc. 7 1 0 0 0 

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

 

Arbitrability Issues 289 219 191 275 228 

 Arbitrability of Grievances 96 38 26 23 29 

 Procedural 62 68 96 123 93 

 Substantive 18 28 37 41 40 

 Procedural & Substantive 16 10 17 24 22 

 Other Arbitrability Questions 0 0 0 0 0 

 Not Elsewhere Classified 97 75 15 64 44