FMCS IMPACT Federal Mediation & Conciliation Service Eugene G. Bralley DMS Saint Louis Sub-Region Impact on Labor-Management Relations 2006 / 2007

FMCS IMPACT F.M.C.S. Creation  Independent agency under Taft-Hartley amendments in  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.

FMCS IMPACT 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.

FMCS IMPACT 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

FMCS IMPACT FMCS Impact on U.S. Economy  FMCS mediation in CBM disputes saved U.S. workers & businesses $9 billion from 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 (Source: EPF 2005 Study)

FMCS IMPACT 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)

FMCS IMPACT Work Stoppages (U.S.) (all size bargaining units)

FMCS IMPACT Work Stoppage Trends Note: Preliminary data from FMCS-commissioned study Sources: FMCS Case Data Number of Work Stoppages Ended in Fiscal Year,

FMCS IMPACT 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

FMCS IMPACT SOME UNDERLYING CAUSES OF 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

FMCS IMPACT 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.”

FMCS IMPACT 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.

FMCS IMPACT Relationship Development & Training  2006 U.S. Statistics  Active in 2,445 joint training/process cases

FMCS IMPACT Alternative Dispute Resolution  2006 U.S. Statistics  1,269 assigned cases  Federal agency ADR contracts, public sector and private sector employment mediations

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

FMCS IMPACT 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

FMCS IMPACT WHY USE MEDIATION ?

FMCS IMPACT 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

FMCS IMPACT Estimated Direct Financial Impact of Work Stoppages by Year Source: Employment Policy Foundation 2005 & FMCS Economic Model YearHoursWagesProfitsTotal (1,000s)($1,000s) ,496777,792105,217883, ,5703,206,881143,3223,350, ,751436,14059,344495, ,686341,70221,819363, ,079329,19243,486372, ,501954,527147,9481,102, ,064400,49487,581488, ,175549,463175,717725, ,734641,656159,658801,314 Total420,0567,637,847944,0938,581,940

FMCS IMPACT Early FMCS Intervention is Key to Reducing Work Stoppage Duration Source: Employment Policy Foundation 2005 & FMCS Economic Model

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