Federal Mediation Service Revises Rules on Providing Arbitrators to Federal Agencies

The Federal Mediation and Conciliation Service (FMCS) released an interim final rule that modifies its longstanding practice of automatically providing arbitrator panels for federal labor grievances. The new regulation authorizes FMCS to make "limited threshold determinations" about its ability to furnish arbitrators, especially for agencies impacted by President Trump's 2025 executive orders limiting collective bargaining on national security grounds.

Unions such as the American Federation of Government Employees, International Federation of Professional and Technical Engineers, National Federation of Federal Employees, and National Treasury Employees Union contend the rule breaches the Administrative Procedure Act and contradicts FMCS's own regulations that require honoring all panel requests. FMCS says the change is needed because some agencies have objected to arbitrator appointments under the executive orders, and the rule is effective immediately with comments accepted until Sept. 4.

Critics, including attorney Suzanne Summerlin and former NTEU president Robert Tobias, argue the agency is overstepping its ministerial function and encroaching on the jurisdiction of arbitrators and the Federal Labor Relations Authority. The adjustment comes amid a series of recent arbitrator rulings favoring unions in cases involving telework cancellations and disciplinary actions.