FMCS IMPACT 2006-2007 1 Federal Mediation & Conciliation Service Eugene G. Bralley DMS Saint Louis...
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Transcript of FMCS IMPACT 2006-2007 1 Federal Mediation & Conciliation Service Eugene G. Bralley DMS Saint Louis...
FMCS IMPACT 2006-2007
1
Federal Mediation & Conciliation Service
Eugene G. Bralley DMSSaint Louis Sub-Region
Impact onLabor-Management Relations
2006 / 2007
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.
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.
FMCS IMPACT 2006-2007
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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 2006-2007
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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)
FMCS IMPACT 2006-2007
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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)
FMCS IMPACT 2006-2007
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Work Stoppages(U.S.)
(all size bargaining units)
0
100
200
300
400
500NumberAvg. days
FMCS IMPACT 2006-2007
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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
FMCS IMPACT 2006-2007
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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
FMCS IMPACT 2006-2007
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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
FMCS IMPACT 2006-2007
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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.”
FMCS IMPACT 2006-2007
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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.
FMCS IMPACT 2006-2007
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Relationship Development & Training
2006 U.S. Statistics
Active in 2,445 joint training/process cases
FMCS IMPACT 2006-2007
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Alternative DisputeResolution
2006 U.S. Statistics
1,269 assigned cases
Federal agency ADR contracts, public sector and private sector employment mediations
FMCS IMPACT 2006-2007
15
A.D.R. Growth(U.S.)
0
200
400
600
800
1000
1200
1400
1600
1995 1997 1999 2001 2003 2005
Cases
FMCS IMPACT 2006-2007
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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
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
FMCS IMPACT 2006-2007
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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
FMCS IMPACT 2006-2007
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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