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Trump Closes Little-Known Agency Supporting Collective Bargaining

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On March 28, 2025, a report highlights a significant move by the administration that impacts independent agencies and, consequently, working individuals. This development involves an ongoing effort to weaken these agencies, now targeting the Federal Mediation and Conciliation Service (FMCS), a critical yet lesser-known labor agency, for elimination.

During his presidential campaign, Donald Trump pledged to advocate for working people. However, actions throughout his presidency have consistently contradicted this claim. The most recent example involves attempts to undermine several independent federal agencies responsible for regulating corporate conduct, such as the National Labor Relations Board, the Federal Trade Commission, and the Equal Employment Opportunity Commission, by removing Democratic members unlawfully. Moreover, Trump is now pursuing the outright dismissal of the FMCS, an agency integral to maintaining industrial harmony and assisting in the collective bargaining process.

The FMCS, composed of around 200 individuals, was established by Congress to support negotiations and help resolve disputes among parties. Conceived under the anti-union 1947 Taft-Hartley Act, FMCS was designed to limit the occurrence of strikes and other labor-related conflicts. Initially functioning under the US Department of Labor as the US Conciliation Service, employers found it too supportive of labor, prompting its transformation into the current independent federal agency.

FMCS’s explicit mission is to aid parties in the collective bargaining process, facilitating hundreds of private sector negotiations annually through their expert mediators. While FMCS provides these mediation services and offers training on related topics at no cost, other bodies like the National Labor Relations Board handle union elections and unfair labor practices, and the National Mediation Board handles specific industry disputes.

Recent developments reveal that Trump has set FMCS and similar agencies for reduction via a Presidential executive order issued on March 14, 2025. The order demands the downsizing of their operations to the legal minimum, forcing FMCS to defend its role and justify its activities against its congressional mandate. Concurrently, renewed media focus on allegations of previous misconduct at FMCS seems to support the shutdown efforts.

Reports indicate that FMCS staff are being informed of a potential closure; mediations are already being canceled. The future of FMCS’s essential services remains uncertain. It is unclear whether these functions may be transferred to the less experienced US Department of Labor or discontinued completely, potentially leaving companies, especially smaller ones, and unions without essential support.

This episode adds to a growing list of actions by Trump’s administration perceived as detrimental to workers, despite past promises of adherence to worker interests.

Lynn Rhinehart, a former general counsel of the AFL-CIO and senior advisor to the Department of Labor’s leadership, contributed to this report.

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