FMCS IMPACT 2006-2007 1 Federal Mediation & Conciliation Service Eugene G. Bralley DMS Saint Louis...

FMCS IMPACT 2006-2007

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Federal Mediation & Conciliation Service

Eugene G. Bralley DMSSaint Louis Sub-Region

Impact onLabor-Management Relations

2006 / 2007


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F.M.C.S. Creation

Independent agency under Taft-Hartley amendments in 1947.

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

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


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F.M.C.S. Mission

Promote sound & stable L/M relations. Prevent/minimize work stoppages through

mediation assistance to parties. Advocate collective bargaining, mediation

& voluntary arbitration. Develop the art, science & practice of

conflict resolution. Foster constructive joint L/M processes.


4

F.M.C.S. Services

Collective Bargaining Mediation Private, Public, & Federal

Sectors

Relationship Development & Training Customized training

Education, Outreach & Advocacy Of collective bargaining

processes

Alternative Dispute Resolution In-lieu of litigation

Arbitration Services

International Program


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FMCS Impact on U.S. Economy FMCS mediation in CBM

disputes saved U.S. workers & businesses $9 billion from 1999-2004 by averting work stoppages

Reduced number of impacted workers by 43.2% (~4.3 million vs. 2.4 million)

Prevented 1,265 work stoppages between 1999-2004.

(Source: EPF 2005 Study)


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Collective Bargaining Mediation

2006 U.S. Statistics

23,002 Intake cases 4,486 closed (active) 86% closed/agrmt.

1,632 grievance mediation cases

266 work stoppages (all size B.U.’s)


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Work Stoppages(U.S.)

(all size bargaining units)

0

100

200

300

400

500NumberAvg. days


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Work Stoppage Trends

Note: Preliminary data from FMCS-commissioned study

Sources: 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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Hot Topics at the Table

Job Security Subcontracting Off-shore job losses Technology

Staffing issues Healthcare industry “Foreign” nurse recruiting Construction building trades

Mandatory O/T State legislation

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 “Fair Share Health Care”

legislation introduced in 31 states


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SOME UNDERLYING CAUSESOF NURSING SHORTAGE

Hospital Acuity “Specialty” demand

continues to rise

Insufficient number of faculty in nursing programs to accommodate enrollment demands

Low retention rates for younger workers

Aging workforce Within 10 years, 40%

of RN’s will be 50 years old or older

½ of working RN’s will reach retirement age in next 15 years


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A Mounting Labor Shortage The NAHB reported in the Builders’

Economic Council Survey in May 2006 that, “every sector of the construction industry is experiencing some labor shortage. The numbers are highest in the need for finished and rough carpenters.”


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A Mounting Labor Shortage According to the Home Builders

Institute, the industry employed 6.7 million workers in 2001 and an additional 1.5 million are needed by 2010 just to sustain productivity.

According to the National Center for

Construction Education and Research (NCCER), the average age of craft workers is 47.


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Relationship Development & Training


Active in 2,445 joint training/process cases


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Alternative DisputeResolution


1,269 assigned cases

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


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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

Cases


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Common reasons for not reaching agreement

Ineffective communications

Inaccurate info./data

Personalities / emotion

Morals differ

Internal/external political pressure

Un-realistic expectations (economic, status, etc.)

Perception of “Fair”

Pride


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WHY USE MEDIATION ?


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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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Estimated Direct Financial Impact of Work Stoppages by Year

Source: Employment Policy Foundation 2005 & FMCS Economic Model

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


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Early FMCS Intervention is Key to ReducingWork Stoppage Duration

Source: Employment Policy Foundation 2005 & FMCS Economic Model

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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FMCS IMPACT 2006-2007 1 Federal Mediation & Conciliation Service Eugene G. Bralley DMS Saint Louis...

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