UPS / Teamsters

On July 31, 1997, FMCS entered negotiations between United Parcel Service and the International Brotherhood of Teamsters six hours before a strike deadline. It required three weeks of mediated negotiation, frequently around the clock, to bring to an end the largest national strike in two decades.

United Parcel Service dominates the package express industry, capturing approximately 80 percent of the national market. UPS employs 185,000 members of the International Brotherhood of Teamsters, the second largest private-sector bargaining unit in the country. There had never been a national strike in the 90-year history of the company.

Contract bargaining began in March 1997, and continued for several months with no major problems. An FMCS mediator was assigned to the case and continually monitored the progress of the talks in which the parties seemed to be moving toward agreement. But in the last week of July, positions hardened to the point that the company tendered its "last, best and final offer," and the Teamsters announced a midnight July 31 strike deadline.

The FMCS Director and field mediator convened a joint meeting of the bargaining committees and asked that the leaders of each side meet in "off-the-record" discussions to try to overcome the issues in dispute. At the request of the Director, the Teamsters postponed their strike deadline for three days, and bargaining continued at FMCS headquarters, sometimes around the clock. Still unable to bridge their differences, 185,000 Teamsters went on strike at 12:01 a.m. Monday, August 4.

The Director reconvened the off-the-record discussions, but the union and company still were not ready to reach agreement on a contract. Talks broke off for four days. The Director and the U.S. Secretary of Labor began to communicate frequently, and on August 14, jointly called the parties back together. With the Secretary of Labor’s continuous presence at the negotiations reflecting the Administration’s strong desire for a settlement, the FMCS Director, Deputy Director and field mediator led the parties through 80 hours of bargaining over five days. Finally, just after midnight on August 10, agreement was announced on a new, five-year contract.

Wheeling Pittsburgh Steel Company / United Steelworkers of America

Teamwork between FMCS and a U.S. Senator helped Wheeling Pittsburgh Steel Corporation and the United Steelworkers of America reach a new labor contract in 1997, ending the longest strike in steel manufacturing history. The negotiations, originally working against a September 30 contract expiration date, were complex and contentious from the outset. One of the primary issues in dispute involved a union proposal to re-establish a defined benefit pension plan, which the company refused to consider. The company offered a counter-proposal, which the union rejected. Along with several other unresolved significant issues, the stage was set for confrontation.

During initial FMCS contact with management and union representatives, it became clear that both parties were locked into their respective positions on the pension issue, and that neither would accept the other’s proposal. Offers by FMCS to mediate the dispute were rejected, and on October 1, 1996, a strike commenced by approximately 4500 steelworkers. FMCS remained in contact with both parties on a regular basis to assess the situation and determine if there was any hope of restarting negotiations. Both sides remained adamant, and gave no signal that there was any reason to convene a bargaining session.

Seventy-eight days into the work stoppage, the mediator requested that top negotiators from both sides attend a meeting in the FMCS Pittsburgh field office. Some rather spirited discussions took place, but no substantive progress was made toward breaking the deadlock. FMCS remained in regular contact with the parties during the next several weeks. In January 1997, FMCS sent a letter to the chief spokespersons for the company and the union calling on both sides to resume full committee bargaining on January 15, 1997.

The negotiations took place over three days. But with no appreciable progress, the mediator adjourned the negotiations subject to call. Immediately afterward, FMCS received numerous inquiries from elected officials in the affected strike areas offering assistance and support to help resolve the conflict.

In March, Senator Jay Rockefeller, working in concert with the federal mediator, convened a meeting of the top negotiators from the company and union in Washington, D.C., still resulting in little progress. Numerous attempts were made over the next several weeks to piece together a settlement. In April, Senator Rockefeller and the mediator once again convened a meeting, this time in Pittsburgh, to try again to bring closure to this epic struggle. It was not to be. The company rejected the union’s offer and abruptly walked out.

FMCS and Senator Rockefeller continued to press the parties to meet and, finally, on August 12, 1997, following many weeks of "small committee" negotiations in New York City, the United Steelworkers of America employed at Wheeling Pittsburgh Steel Corporation ratified a new labor contract that expires on September 1, 2002.

McDonnell Douglas Corporation / International Association of Machinists and Aerospace Workers (IAM)

McDonnell Douglas Corporation, one of the nation’s largest aerospace manufacturing companies and defense contractors, employs 6,700 members of the International Association of Machinists and Aerospace Workers (IAM) at its St. Louis facility. In the 1996 contract negotiations, three major issues were on the table: job security, and the related subject of outsourcing, wages and health care benefits for future retirees. The company offered a proposal which would have protected 5,000 of the St. Louis jobs, along with a general wage increase and health care benefits packages. The offer was rejected by union negotiators.

Bargaining was contentious, and, ultimately, unproductive as the IAM-represented production and maintenance workers went on strike in early June. Little progress toward a new contract was made in several joint meetings with FMCS mediators, and negotiations broke off again in mid-August. The strike continued through the summer.

Finally, in September, FMCS Director John Calhoun Wells and U.S. House of Representatives Minority Leader Richard Gephardt, in whose St. Louis Congressional District McDonnell Douglas is located, brought the negotiating committees back together with federal mediators in the offices of the Minority Leader in the U.S. Capitol. The parties met for three hours, reconvened the following week for seven hours, and then the next day began at 9 a.m. and continued meeting around the clock for thirty hours until agreement was reached.

The preliminary agreement was ratified the next week by local union members and a 94-day strike was ended.

 Denver Airport / International Association of Machinists

The opening of Denver, Colorado’s new international airport (DIA) had been the subject of national attention and local embarrassment when the expensive and highly-touted project incurred significant delays and cost overruns. The problem was the start-up of a "state-of-the-art" baggage handling system.

Eventually, the airport was opened, the baggage handling system began operating, and United Airlines, the airport’s principal tenant, decided to hire a contractor to keep the baggage system running. In quick succession, the International Association of Machinists and Aerospace Workers (IAM), District Lodge 142 gained representation rights for the contractor’s 150 employees and labor negotiations began on an initial contract.

 Most initial contracts are difficult, and this was no exception. In early 1997, the parties requested the services of the Federal Mediation and Conciliation Service, and within a few months, had reached a "shaky" tentative agreement. The proposal was soundly rejected by the union’s membership. Several more meetings resulted in a second tentative agreement, and although a significant improvement over the first, it, too, was voted down by the membership.

The union prepared for a strike in mid-June, the worst possible time for Denver. The G-7 Summit was in high gear, focusing the world’s attention on the city and making smooth and efficient airport operation critical.

Fortunately, the parties continued to work with the mediator to put together an agreement that would be ratified. Some late night heroics by the negotiators, involving contact with representatives of the parties from all over the United States, brought about a third agreement. This tentative contract won ratification. Through the tireless efforts of the parties at the table, and the assistance of the federal mediator, a potentially disruptive and embarrassing strike was averted.

Chicago Sun-Times / Chicago Newspaper Guild

The Chicago Sun-Times and the Chicago Newspaper Guild have had a long history of bitter, protracted negotiations which almost resulted in a strike during the 1994 negotiations. A marathon bargaining session held on the deadline date resulted in agreement just as the Guild members were ready to go out on strike. This poor relationship, of course, continued during the term of that contract.

The mediators involved in the 1994 negotiations were determined to do everything possible to prevent another confrontational situation in the 1997 bargaining. Encouraging the parties to agree to any type of preventive mediation activity aimed at improving the relationship, however, proved to be very difficult.

In September 1996, FMCS mediators met with the Sun-Times Vice President of Labor Relations to review and discuss preventive mediation programs available. He seemed to be in favor of an Interest-Based Bargaining program, but admitted he would have a hard-sell with his executive leadership. He asked for FMCS to help convince his supervisors. FMCS met with the Sun-Times executives in February 1997, and they agreed to an Interest-Based Bargaining training program. FMCS had met with the Guild in January 1997 to discuss the same training options, and they agreed to the Interest-Based Bargaining training in an attempt to improve the bargaining climate and relationship.

FMCS began by helping the parties resolve a major obstacle over lost-time pay for Guild members who participated in the training. Then in June 1997, the Interest-Based Bargaining training was conducted. The parties were very enthusiastic and requested our assistance in facilitating the negotiations process. Interest-Based Bargaining began in August 1997 with FMCS facilitating the initial start-up of the process, and the assigned mediators available for assistance.

As of this time, bargaining is actually underway and FMCS is actively mediating the negotiations. The current contract expires September 30, 1997.

Georgia Pacific Corporation / United Paperworkers International Union

This recently-closed dispute case demonstrates the successful integration of FMCS

services in all three critical areas of service delivery. In September and October 1996, FMCS mediators and two members of the Upper Midwestern Regional Leadership team conducted a major customer outreach effort in cooperation with the Lake Superior Area Labor Management Association and the Iron Range Labor Management Association. This initiative included two half-day workshops highlighting FMCS preventive mediation services.

Among the nearly 80 management and union participants were leaders from the Georgia Pacific Corporation and their unionized workforce, represented by the United Paperworkers International Union (UPIU). Based on the information provided during an overview segment on Interest-Based Bargaining (IBB), company and union officials who were concerned about the adversarial nature of their relationship requested FMCS training in the IBB process prior to their upcoming contract negotiations.

FMCS Commissioners custom designed and conducted a two-day training program in the IBB process. Following the training, the parties decided to utilize the process in the non-economic portion of their contract bargaining. At their request, FMCS provided mediation assistance in the negotiations and recently concluded the bargaining with a six year labor agreement which received a unanimous committee recommendation.

LA Community College District / American Federation of Teachers

The Los Angeles Community College District (LACCD) includes 9 campuses within Los Angeles County, and employs approximately 7,000 people. The AFT College Guild represents the faculty, support staff and campus police. FMCS was approached by the AFT, Faculty Guild to explore the possibility of using Interest-Based Bargaining (IBB) to negotiate a contract. Their contract with the LACCD expired in September 1996 and they were searching for an process that might alleviate some of the past problems; for example, previous contracts had taken up to two years to negotiate. The district wanted to become economically competitive with neighboring community college districts while maintaining a balanced budget in the midst of financial uncertainty. AFT wanted comparable wages, and perceived themselves receiving less than smaller districts.

In April 1996, at an LACCD Board of Trustees meeting, FMCS conducted a short presentation on the IBB process and explained the joint commitment necessary to successfully negotiate within this process. In May, three federal mediators conducted IBB training for approximately 60 participants including the Board of Trustees, whose attendance was a requirement in the parties’ commitment to use the process.

In June the parties began negotiations, alternating meeting locations between the District, AFT, and the Glendale FMCS office. FMCS provided training in communication/listening skills, facilitation and team-building to the negotiating teams, and facilitated approximately 40 bargaining sessions with the parties. In February, a tentative agreement was reached on a new contract. Two weeks later, the AFT ratified the contract, and the Board of Trustees unanimously adopted the contract at their next Board meeting.