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August 2008

Role and Function of the FMCS

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Statutory Mission

1947:Created as an Independent agency under Taft-Hartley Act

Neither a regulatory nor an enforcement agency, but a neutral designed to assist Labor & Management

Resolve collective bargaining disputes which threaten the free flow of commerce.

Purpose: “Make available full and adequate government facilities for conciliation, mediation and voluntary arbitration to aid and encourage [the parties] to settle differences through collective bargaining”

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FMCS Mission

Promote sound and stable labor/management relations;Promote sound and stable labor/management relations;

Prevent or minimize work stoppages;Prevent or minimize work stoppages;

Advocate collective bargaining, mediation, arbitration;Advocate collective bargaining, mediation, arbitration;

Advocate the art, science and practice of ADR;Advocate the art, science and practice of ADR;

Provide conflict resolution services; Provide conflict resolution services;

Foster improved labor-management relationshipsFoster improved labor-management relationships

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FMCS STRUCTUREFMCS STRUCTURE

Headquarters in Washington, DCHeadquarters in Washington, DC

Director appointed by the President of the United Director appointed by the President of the United States, and reports directly to the PresidentStates, and reports directly to the President

10 District Offices10 District Offices

69 Field Offices in 43 states69 Field Offices in 43 states

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FMCS: How CanWe Help You?

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How Can Mediation Benefit You?

Mediation, the use of a third-party neutral, can help you “bridge the gap.”

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A Mediator Can….

Clarify Issues

Define problems

Generate options

Explore alternatives

Keep talks moving

Make suggestions

Establish realistic expectations

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Why mediation can be an effective tool for conflict resolution

• Parties retain control of resolution

• Voluntary (in most cases)

• Informal vs. formal process

• Time efficient

• Cost effective

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• Collective Bargaining Mediation

– Private, Public, & Federal Sectors

• Relationship Development and Training

– Customized training for labor and management

• Education, Outreach & Advocacy

– Of collective bargaining processes

• Employment Mediation

– In-lieu of litigation of non-labor employment disputes

• Grievance Mediation

• Arbitration Services

FMCS SERVICESFMCS SERVICES

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In-depth Training and Help

• Training in interest-based problem solving, communication skills and relationship-building

• Look at “best practices” in USA and abroad

• Hold major conferences – National Labor-Management Conference

• Work with negotiations and mediation training for government agencies, industry and unions, and US Marine Corps

• Develop courses in dealing with generational conflict at the workplace; grief at the workplace, and the FMCS Institute

Fisher and Ury , Getting to Yes

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FMCS CBM Statistics

22,000 expired contracts22,000 expired contracts

FMCS mediated about 31%FMCS mediated about 31%

   

FMCS settlement rate = 86% FMCS settlement rate = 86%

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Hot Topics at the Table

• Job Security

– Subcontracting

– Off-shore job losses

– Technology

– Successor language

» (I.E. Hotel Industry)

• Staffing issues

– Healthcare industry

– “Foreign” nurse recruiting

– Construction building trades

• Pension Benefits

– Defined benefits vs. defined contributions

– Two-tier systems

– “Freezing Plans” (IBM, HP, Verizon, Alcoa, Motorola)

• Health Insurance

– Active employees & retirees

– Plan costs & design

– Co-pays & cost sharing

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FMCS Impact on U.S. Economy

• FMCS mediation in CBM disputes saved U.S. workers & businesses $2.3 billion in 2007 by averting or shortening the duration of work stoppages

• Prevented an estimated 299 work stoppages in 2007

• Shortened duration of 69 work stoppages in 2007

• Reduced number of lost worker hours by 47.5 million

Source: FMCS Economic Model

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Estimated Direct Financial Impact of Work Stoppages by Year

Year Hours Wages Profits Total

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

1999 44,496 777,792 105,217 883,010

2000 172,570 3,206,881 143,322 3,350,203

2001 23,751 436,140 59,344 495,484

2002 17,686 341,702 21,819 363,522

2003 17,079 329,192 43,486 372,678

2004 71,501 954,527 147,948 1,102,475

2005 18,064 400,494 87,581 488,075

2006 25,175 549,463 175,717 725,180

2007 29,734 641,656 159,658 801,314

Total 420,056 7,637,847 944,093 8,581,940

Source: Employment Policy Foundation 2005; FMCS 2006-07

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Work Stoppages(U.S.)

(all size bargaining units)

0

100

200

300

400

500NumberAvg. days

Source: FMCS Case Data

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Early FMCS Intervention is Key to ReducingWork Stoppage Duration

Source: Employment Policy Foundation 2005; FMCS 2006-07

0

20

40

60

80

100

1999 2000 2001 2002 2003 2004 2005 2006 2007

Avg

. D

ays

in W

ork

Sto

pp

age

1st Mediation After Expiration

1st Mediation Before Expiration

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Work Stoppage Trends

Source: FMCS Case Data

Number of Work Stoppages Ended in Fiscal Year, 1970-2007

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006

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• 2007 U.S. Statistics

• 1,060 assigned cases

• Federal agency ADR contracts, public sector and private sector employment mediations

Alternative Dispute Resolution

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A.D.R. Growth(U.S.)

0

200

400

600

800

1000

1200

1400

1600

1995 1997 1999 2001 2003 2005 2007

Cases

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Employment Mediation

Although the agency provides employment mediation services to the private sector, efforts are concentrated on Federal sector employment mediation.

Employment mediation in the private and public sectors are reimbursable activities. We are compensated for travel, delivery and preparation time for each case handled.

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Outside the collective bargaining arena, FMCS provides employment mediation services to the federal sector and to state and local governments.

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 alternative dispute resolution services.

Mediation Services for Federal Sector, State and Local Governments

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FMCS provides consultation, training, dispute resolution systems design and facilitation services.

Our services help you reduce litigation costs and promote better government decision-making.

Mediation Services for Federal Sector, State and Local Governments

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FY 2007 Federal Sector EM Cases

Federal Agency Purpose of FMCS Involvement

Number of Cases Handled

Internal Revenue Service Workplace and EEO complaints

121

Department of Homeland Security, Immigration and Customs Enforcement

EEO complaints 165

United States Postal Service Non-bargaining unit disciplinary cases and adverse action appeals and MSPB claims and REDRESS combined

841

Health and Human Services, Office of Civil Rights

Age discrimination cases under ADA of 1975

160

Federal Bureau of Investigation EEO complaints 33

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FY 2007 Employment Mediation

FY 2002 FY 2003 FY 2004 FY 2005

FY 2006 FY 2007

Number of Employment Mediation Cases

1,198 1,310 1,596 1,008 1,022 1,060

Federal Sector 539 525 1,417 917 993 1,038

Public Sector (State and Municipal) 31 8 5 31 13 5

Private 430 628 174 60 16 17

Percent of EM Cases Settled N/A 59% 45% 48% 51% 50%

Our Growing Federal Case Load

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Organizational Conflict Management Services

• Training

– Communication Skills

– Rebuilding Workplace Relationships

– Basic & Advanced Conflict Management Skills

– Consensus Building & Working Styles for Team Collaboration

• Mediation

– EEO Informal & Formal Grievances

– Workplace Interventions

– Public Policy & Community Issues

– Contract Disputes

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Organizational Conflict Management Services

• Organization Enhancements

– Systems Design for Conflict Management and Resolution

– Succession Planning

– Mentoring & Coaching

• Facilitation Services

– Work Group Meetings

– Internal & External Stakeholder Meetings

– Management & Labor Committee Forums

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Arbitration Functions

• FMCS administers a roster of arbitrators (1,000 experts)

• It also provides panels of names for requests from labor and management

• It makes sure that the procedures are fair

• It has a “Arbitrator Review Board” to deal with any complaints and to decide who is permitted to be on the roster

• It provides training for the parties in arbitration and for neutrals who wish to become arbitrators --- this is done through the FMCS Institute.

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THE GENERAL PRINCIPLES

Getting To Yes

1. Don’t Bargain Over Positions

2. Separate People From the Problem

3. Focus On Interests, Not Positions

4. Invent Options For Mutual Gain

5. Insist on Using Objective Criteria

Fisher and Ury , Getting to Yes

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Keys To Cooperative Relationships, Of Any Kind

Keys To Cooperative Relationships, Of Any Kind

Cooperative Relationships

COMMUNICATION (Develop joint problem solving teams)

COMMUNICATION (Don’t let problems fester)

COMMUNICATION (Be honest about issues)

COMMUNICATION (Know when to get help)

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www.FMCS.govwww.FMCS.gov

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