Unions Sue to Reinstate Federal Mediation Service Under Trump Cuts

Labor Unions Take Legal Action Against Administration Over FMCS Reorganization

In a significant move against the Trump administration, seven major labor unions have initiated a lawsuit over the restructuring of the Federal Mediation and Conciliation Service (FMCS). This small yet pivotal agency plays a crucial role in facilitating negotiations between workers and employers, promoting labor peace and protecting workers' rights.

The AFL-CIO, along with organizations such as AFGE, AFSCME, AFT, IAM, SEIU, and UFCW, have challenged the administration’s measures, which include laying off mediators, staff, and shutting down field offices nationwide. These actions, plaintiffs argue, effectively dismantle FMCS and violate both the Administrative Procedure Act and the U.S. Constitution by hindering the agency’s ability to fulfill its congressional mandate.

FMCS has historically aided in resolving labor disputes and contract negotiations, securing over $500 million in economic savings annually. However, recent budget cuts have severely impacted its functioning, reducing its mediation workforce from 80-100 employees to just five, and placing 93% of its staff on leave. This has led to a complete closure of its field offices.

AFL-CIO President Liz Shuler voiced concerns over these developments, stating, "FMCS is a little-known but critical government agency that works to bring labor and management together to solve problems between workers and employers—and it’s illegally under attack by Elon Musk and his DOGE." She emphasized the need to challenge these changes, which she described as "illegal, cruel and wrong-headed."

AFSCME President Lee Saunders added, "FMCS helps to mediate thousands of collective bargaining agreements and other disputes, ensuring workers are paid fairly while commerce and services continue to flow." He highlighted that the agency's relatively modest budget of $55 million facilitates significant economic savings, opposing actions that would benefit anti-union interests.

Other union leaders, including AFT President Randi Weingarten and AFGE National President Everett Kelley, underscored the importance of maintaining FMCS as a neutral arbiter to sustain labor peace and secure fair negotiations. Kelley condemned the efforts to abolish FMCS, noting the detrimental impact on union rights and protections.

The lawsuit stresses that closing FMCS not only disrupts ongoing negotiations, leading to a potential increase in strikes and lockouts, but also undermines workers' bargaining rights. Filed in the U.S. District Court for the Southern District of New York, the complaint can be accessed online here.