1. FMCS IMPACT 2006-2007 1 Federal Mediation & Conciliation Service Eugene G. Bralley DMS Saint Louis Sub-Region Impact on Labor-Management Relations 2006 / 2007

2. FMCS IMPACT 2006-2007 2 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.

3. FMCS IMPACT 2006-2007 3 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. FMCS IMPACT 2006-2007 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

5. FMCS IMPACT 2006-2007 5 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)

6. FMCS IMPACT 2006-2007 6 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)

7. FMCS IMPACT 2006-2007 7 Work Stoppages (U.S.) (all size bargaining units)

8. FMCS IMPACT 2006-2007 8 Work Stoppage Trends Note: Preliminary data from FMCS-commissioned study Sources: FMCS Case Data Number of Work Stoppages Ended in Fiscal Year, 1970-2007

9. FMCS IMPACT 2006-2007 9 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

10. FMCS IMPACT 2006-2007 10 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

11. FMCS IMPACT 2006-2007 11 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.”

12. FMCS IMPACT 2006-2007 12 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.

13. FMCS IMPACT 2006-2007 13 Relationship Development & Training  2006 U.S. Statistics  Active in 2,445 joint training/process cases

14. FMCS IMPACT 2006-2007 14 Alternative Dispute Resolution  2006 U.S. Statistics  1,269 assigned cases  Federal agency ADR contracts, public sector and private sector employment mediations

15. FMCS IMPACT 2006-2007 15 A.D.R. Growth (U.S.)

16. FMCS IMPACT 2006-2007 16 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

17. FMCS IMPACT 2006-2007 17 WHY USE MEDIATION ?

18. FMCS IMPACT 2006-2007 18 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

19. FMCS IMPACT 2006-2007 19 Estimated Direct Financial Impact of Work Stoppages by Year Source: Employment Policy Foundation 2005 & FMCS Economic Model YearHoursWagesProfitsTotal (1,000s)($1,000s) 199944,496777,792105,217883,010 2000172,5703,206,881143,3223,350,203 200123,751436,14059,344495,484 200217,686341,70221,819363,522 200317,079329,19243,486372,678 200471,501954,527147,9481,102,475 200518,064400,49487,581488,075 200625,175549,463175,717725,180 200729,734641,656159,658801,314 Total420,0567,637,847944,0938,581,940

20. FMCS IMPACT 2006-2007 20 Early FMCS Intervention is Key to Reducing Work Stoppage Duration Source: Employment Policy Foundation 2005 & FMCS Economic Model

21. FMCS IMPACT 2006-2007 21 For More Information  Visit Our Web site: WWW.FMCS.GOV