/>iFederal layoffs have been a focal point of President Trump’s administration, drawing both strong support and opposition. On March 15, Trump issued an executive order directing seven federal agencies to make workforce cuts. Among the agencies affected was the Federal Mediation and Conciliation Service. Downsizing this agency could prove problematic for resolving many employer-union disputes moving forward.
What Is the Federal Mediation and Conciliation Service?
The Federal Mediation and Conciliation Service (FMCS) is a small, independent federal agency that provides mediation and conflict resolution services for employer-union conflicts. FMCS works to prevent, curtail, and resolve work stoppages and labor disputes, including offering free services for collective bargaining mediation.
Established in 1947 under the Labor Management Relations Act (commonly known as the Taft-Hartley Act), FMCS has played a crucial role in preventing strikes and facilitating workplace negotiations. It has assisted some of the nation’s largest companies, including Starbucks, Boeing, and Apple. As of Fiscal Year 2023, FMCS mediated 2,467 collective bargaining negotiations, 1,265 high-impact grievance mediations, and 1,100 alternative dispute resolution (ADR) cases. It also conducted 1,566 single or multi-day training and intervention programs, provided 9,706 arbitration panels, and appointed 4,126 arbitrators.
What Did the Executive Order Say?
Trump’s executive order, titled Continuing the Reduction of the Federal Bureaucracy, was another phase in his ongoing effort to downsize the federal workforce. The order’s purpose was described as “continu[ing] the reduction in the elements of the Federal Bureaucracy that the President has determined are unnecessary.”
Each agency listed in the order was directed to eliminate the “non-statutory components and functions” and to “reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law.”
What Happened to FMCS Since the Executive Order?
The executive order did not provide specific instructions on how each agency, including FMCS, should implement the required reductions. However, within days of its issuance, FMCS removed approximately 95% of its staff. Prior to this reduction, FMCS employed around 200 individuals. Now, only about a dozen employees remain, and the number of mediators has dropped from 143 to just four.
Now What?
With only four mediators remaining, the number of mediations conducted will likely decrease, while wait times to schedule a mediation will likely increase. Employers and unions will have to seek alternative methods to resolve disputes, such as private mediators.
This may not be the end to FMCS as we know it. On April 4, 2025, 21 states filed a lawsuit in the United States District Court for the District of Rhode Island challenging Trump’s dismantling of three federal agencies, including FMCS. The lawsuit argues that the executive order violates the Administrative Procedure Act and the Constitution’s separation of powers by stripping the agencies of their discretionary powers.
For now, employers and unions may need to just get along and settle workplace disputes without the FMCS’ services. This small federal agency has become even smaller and will not be as available to help.
