March 17, 2025

Executive Order Slashes Federal Mediation and Conciliation Service

An Executive Order signed by the President on Friday, "eliminates non-statutory functions and reduces statutory functions of unnecessary governmental entities to what is required by law," applying to FMCS and several other entities. FMCS is a small federal agency that provides mediation and other conflict resolution services, including Ombuds services, to prevent work stoppages and labor disputes.

FMCS must provide an outline of its plan to eliminate positions by April 14, including proposed relocations of people and offices outside the Washington, D.C., area, changes to regulations or agency policies to help facilitate downsizing and more details about the implementation of RIFs. FMCS will deliver monthly progress reports and is expected to complete the process by the end of September 2025. (White House Fact Sheet; NPR.)

1 comment:

  1. As a longtime labor arbitrator who has been conducting FMCS-administered arbitrations since the Clinton Administration, this is a tragedy. The administrative-cost-free nature of FMCS' arbitrations benefited both companies and unions. Removing this government option will now enable private organizations, e.g. AAA, to jack up their prices.

    In the end, this seems likely to reflect a long-term inclination on the part of those currently running the Article II branch to eliminate the Wagner Act and its progeny. One doesn't need a cadre of FMCS staff mediatiors if there is no collective bargaining.

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