Legal Definitions - Mediation and Conciliation Service

The Mediation and Conciliation Service, also known as the Federal Mediation and Conciliation Service (FMCS), is an independent agency of the U.S. government. Its primary mission is to prevent and minimize the disruption of business and trade caused by disagreements between employers and labor unions.

The FMCS achieves this by providing impartial assistance to both sides in a labor dispute, helping them to voluntarily resolve their differences through processes like mediation and conciliation. This agency can offer its services proactively if it foresees a potential conflict, or it can intervene when either the employer or the union requests its help.

Here are some examples of how the Mediation and Conciliation Service might operate:

• Example 1: Contract Negotiation Deadlock

  A major automotive manufacturer and the union representing its assembly line workers are in intense negotiations for a new collective bargaining agreement. They are deeply divided over healthcare benefits and pension plans, and the existing contract is about to expire, raising the specter of a widespread strike. Both parties are unwilling to compromise further on their own. In this situation, either the company or the union could contact the Federal Mediation and Conciliation Service to request assistance. An FMCS mediator would then step in as a neutral third party, facilitating discussions, suggesting potential solutions, and helping the parties find common ground to reach an agreement and avoid a costly work stoppage.

• Example 2: Dispute Over Workplace Changes

  A large national grocery chain plans to implement new automated inventory management systems across its warehouses, which would significantly alter job roles for many unionized employees. The union is concerned about potential job losses and retraining requirements, leading to significant tension and a slowdown in productivity. Sensing a potential escalation that could disrupt the supply chain, the Mediation and Conciliation Service might proactively offer its services to the grocery chain and the union. An FMCS conciliator would work with both sides to address their concerns, clarify misunderstandings, and help them negotiate a fair transition plan that minimizes disruption and ensures continued operations.

• Example 3: First-Time Union Contract

  Employees at a rapidly growing e-commerce fulfillment center recently voted to unionize. Now, the company management and the newly formed union are attempting to negotiate their very first collective bargaining agreement. They are struggling to agree on fundamental issues such as wages, working conditions, and grievance procedures, leading to frustration and a lack of progress. Recognizing the inexperience of both parties in formal labor negotiations, the Mediation and Conciliation Service could be invited by either side to provide guidance. An FMCS mediator would help structure the negotiation process, ensure productive dialogue, and assist both the company and the union in drafting a foundational agreement that establishes a stable working relationship and prevents future disputes from escalating.