Answer. The $558,000 that is requested for the mandated national office move includes $440,000 for the Increased cost of office space, $35,000 for communication charges, $16,000 for postage, $55,000 for office repairs and alterations, and $12,000 for printing costs.

If the $558,000 requested for this move is insufficient, FMCS will have to absorb the shortfall with "regular" funds.

TRAVEL ALLOWANCE

Question. Your request for travel shows a decrease from FY 1991. How do you plan to carry out the mission of the Service with this decrease in travel funding?

Answer. Funds requested for FMCS travel in FY 1992 total $1,268,000, an increase of $30,000 over the FY 1991 travel allowance of $1,238,000.

The Service expects increases in travel during FY 1992 for field station assignments (+$20,000), official station transfers (+$2,000), and new mediator 'travel (+$18,000). FMCS expects an elimination of travel in FY 1992 for the Labor-Management

Question. What effect has the executive pay increase and the geographic pay rates had on your agency, and how are you absorbing these pay increases?

Answer. To cover the costs of these pay raises, FMCS has diverted funds from other areas, primarily funds set aside for new mediator hiring. The FMCS full-time equivalent (FTE) level in FY 1991 has been reduced significantly from original staffing plans.

DISPUTE MEDIATION

Question. What criteria does the Service use in entering dispute mediation cases?

Answer. FMCS involves itself in those disputes which have interstate implications and where work stoppages in those disputes would have substantial impact on interstate commerce.

In addition, negotiations that involve national defense or national security are assigned for mediation. Mediation is provided in all health care and federal sector cases. Mediation is also provided for state and local sector disputes in those states or jurisdictions where no viable mediation service exists. Generally, in non-health care cases FMCS becomes involved at the request of the labor-management parties.

NATIONAL MEDIATION BOARD

STATEMENT OF JOSHUA M. JAVITS, CHAIRMAN

ACCOMPANIED BY:

PATRICK J. CLEARY, MEMBER

KIMBERLY MADIGAN, MEMBER

BUDGET REQUEST

Senator HARKIN. We will now hear from the National Mediation Board concerning their fiscal year 1992 budget request. The Railway Labor Act as amended establishes the National Mediation Board whose principal goals are the determination of the choice of employee representatives and the mediation of collective bargaining disputes in the airline and railroad industries.

With us today is Mr. Joshua Javits, Chairman of the Board. The fiscal year request is $7,008,000, an increase of $494,000 over fiscal year 1991. Mr. Javits, on behalf of the subcommittee I welcome you today. We will put your statement in its entirety in the record, and if you would just summarize it we would sure appreciate it.

INTRODUCTION OF ASSOCIATES

Mr. JAVITS. I will be happy to do so. It is a pleasure to be here. Senator, if I could, let me introduce my colleagues and members of the Board.

Patrick Cleary is on my right. He has been with the Board for more than 1 year and I had the pleasure of introducing him last year. Kimberly Madigan on my left is the newest member of the Board. She has been on the Board since August 1990. She has had 10 years experience as a practicing attorney under the Railway Labor Act dealing with railroads and airlines on both sides of the fence, management and labor, and we are very pleased to have her on the Board with us.

Mr. Chairman, members of the subcommittee, to summarize the submitted statement, the National Mediation Board is requesting an appropriation of $7,008,000 for fiscal year 1992, $494,000 more than is available for fiscal year 1991.

The primary functions of the Board under the Railway Labor Act include:

One, mediation in connection with collective bargaining and representation matters concerning employees in the railroad and airline industries. For this we are requesting $4,221,000.

Two, voluntary arbitration and the investigation of critical disputes through emergency Board procedures. We are asking $500,000 for this item.

Three, adjustment of employee grievances in the railroad industry. For this we are requesting $2,287,000 be appropriated for fiscal year 1992.

PREPARED STATEMENT

This completes a brief summary of my statement. If you have any further questions, I would be more than happy to answer them.

[The statement follows:]

this

STATEMENT OF JOSHUA M. JAVITS

you for

MR. CHAIRMAN, MEMBERS OF THE SUBCOMMITTEE. Thank opportunity to appear before your Subcommittee today regarding the National Mediation Board's budget for Fiscal Year

1992.

The total amount requested for Fiscal Year 1992 to administer the Railway Labor Act is $7,008,000, and a personnel complement of 58 positions.

The appropriation for the National Mediation Board is requested for expenses necessary to administer the provisions of the Railway Labor Act, as amended. This statute was designed to provide orderly procedures for the settlement of labor disputes in the railroad and airline industries, as well as to handle questions of employee representation and to administer the arbitration provisions of the Act.

When the Railway Labor Act was amended in 1934 it established the National Railroad Adjustment Board for the purpose of handling grievances arising under the terms of collective bargaining agreements in the railroad industry.

89-456, which

In 1966, the President signed Public Law further amended certain provisions of Section 153 of the Act. Under the Public Law, new grievances and those which have been on docket before the National Railroad Adjustment Board for a period of at least one year may be referred to local boards of adjustment. The purpose of this amendment was to reduce an overwhelming caseload of unresolved disputes pending before the National Railroad Adjustment Board.

The budget justification,

as submitted, identifies the

functions just discussed and the amounts requested for each. I

questing $4,221,000, an increase of $448,000 over

Fiscal Year

the

The

1991. These services include mediation relating to the making and amending of collective bargaining agreements, procedures relating to the selection by employees of their bargaining representatives, and a number of administrative duties consistent with statutory authority under Act and related statutes governing railroad and airline labor disputes procedures. Board foresees an increase in this activity largely due to the continuing effects of both airline and railroad deregulation, to mergers, to the proliferation of local bargaining after the completion of national railroad bargaining, and to the potential splintering of railroad carriers from national bargaining.

where there was a significant

Nearly

is a

With

In the airline industry, slowdown before and during the Persian Gulf war, with some signs now of an upturn in traffic, there is a total of 41 contract negotiations scheduled for fiscal years 1991 and 1992. one-half of the total involve pilot groups but there also sizable number involving mechanics and related employees. in the last month, the largest U.S. air carrier, American Airlines, and its pilots' union reached a new collective bargaining agreement through mediation after a very contentious and potentially volatile dispute. Some of the major ongoing mediation cases include pilot and flight attendant negotiations at United, and mechanics and related employee negotiations at TWA, as well as flight attendant negotiations at USAir.

Intense competition, as well as major financial

problems that caused Continental and Pan Am in the past few months to file for Chapter 11 bankruptcy protection from creditors, will result in difficult contract negotiations. The National Mediation Board likely will be asked by the parties at most of the carriers whose contracts are amendable to help them reach peace

ful settlements.

Voluntary Arbitration and Emergency Disputes

The

untary

second activity of the Mediation Board relates to volarbitration and the investigation of critical

disputes