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Labor Unions Challenge Reduction of Key Mediation Agency

A coalition of labor unions has raised concerns regarding the decision by Elon Musk’s Department of Government Efficiency (D.O.G.E.) to significantly reduce the operational capacity of the Federal Mediation and Conciliation Service (FMCS). This agency plays a crucial role in helping workers and employers settle disputes without incurring the expenses and delays associated with litigation. The unions argue that this move, following a recent executive order from President Trump, undermines essential services that benefit both labor and management.

Labor representatives claim that the executive order relegates the FMCS to perform only its “statutory minimum” responsibilities, effectively stifling its ability to operate effectively. They argue that the implementation of this order by D.O.G.E. and the Office of Management and Budget (OMB) contravenes the Administrative Procedure Act and disregards the constitutional separation of powers, leading to an unfair restriction on the agency’s capacity to assist in dispute resolution.

Established by law, the FMCS provides accessible mediation and arbitration services aimed at preventing major disputes that could lead to strikes or costly litigation. The agency is also tasked with assisting federal agencies and their unions in resolving conflicts and mitigating work stoppages, particularly in sectors critical to public health.

In a recent lawsuit filed in the U.S. District Court for Southern New York, the unions contend that FMCS leadership proposed a workforce reduction plan that would still ensure adherence to its legal obligations, initially proposing a workforce of 100 mediators. However, they note that D.O.G.E. interfered, leading to a drastic cut in the number of mediators to just five.

According to the lawsuit, “Instead of the 80 to 100 mediators that FMCS had determined were necessary to perform its statutory responsibilities across the country, D.O.G.E. and OMB ordered that only five mediators would remain at FMCS,” highlighting the drastic downsizing of the agency’s resources. This reduction means that a minimal staff is now expected to fulfill the same extensive duties that were previously managed by a staff 15 times larger.

The unions advocate that the FMCS has consistently operated efficiently, utilizing its modest annual budget of $54 million—which comprises just 0.014% of overall federal expenditures—to save employers and labor unions an estimated $500 million annually in litigation-related expenses.

In the fiscal year 2024 alone, FMCS successfully mediated over 2,300 collective bargaining sessions, handled 1,362 significant grievances, and managed an array of arbitrations and training sessions. The coalitions fear that if the FMCS is effectively dismantled, the ability to engage in productive negotiations will suffer, potentially leading to major disruptions in commerce and healthcare services throughout the country.

The unions emphasized the immediate implications of the workforce reduction, indicating that with 95% of FMCS employees placed on administrative leave, ongoing negotiations have already been impacted. They cited a specific case involving the United Federation of Teachers, which has been in discussions to secure a collective bargaining agreement for 75 employees at Merrick Academy, a charter school in New York City. Due to the absence of FMCS mediators, crucial negotiation sessions have been stalled, significantly heightening the risk of a strike or lockout.

To counter the administration’s actions, the unions have filed for a preliminary injunction seeking to halt the layoffs of the FMCS workforce, with oral arguments on this matter scheduled for April 30.

Source
www.govexec.com