Doge shutters federal workplace mediator agency after Trump order

The Elon Musk-run “department of government efficiency” (Doge) in effect shuttered a 79-year-old federal agency that mediates labor disputes on Wednesday – saving an estimated 0.0014% of the federal budget.

The Federal Mediation and Conciliation Service (FMCS), an independent federal agency that works to prevent and resolve work stoppages and disputes in the public and private sector, has shut down most of its services and placed employees on administrative leave with firings to follow.

“The administration released an executive order a week and a half ago naming FMCS as one of the agencies to be shuttered, but other than our agency denying it and making a few adjustments, we didn’t hear anything further,” said Jefferson Dedrick, a commissioner at FMCS. “Earlier today our mid-level managers informed each of the commissioners that effective at close of business, we would be put on admin leave with a RIF [reduction in force] letter to follow.”

The agency provided mediation for several high-profile strikes, including the Boeing strike last fall.

“Doge basically decided to eliminate all but a few people from the agency. We don’t know the final count but maybe a dozen left out of an agency that had almost 200 employees through last year,” said a FMCS employee who requested to remain anonymous for fear of retaliation. “It is shocking as the agency does not regulate and has always been non-controversial. Even Republicans have always seen the value of an agency that saves the economy far more money in reduced work stoppages in the private sector than the agency spends. It is also a blow to the use of more efficient dispute resolution by federal agencies who have used our services for non-labor disputes. That program has now been entirely abolished.”

They noted the cuts were drastic to the point where the agency, in most cases, can no longer be effective and noted it will worsen and prolong labor strikes and lockouts.

The FMCS was established by Congress in 1947. Its shuttering comes in the wake of Donald Trump’s executive order, signed on 14 March, to dismantle seven federal agencies, including FMCS.

Dedrick added in a LinkedIn post on the dismantling of the agency: “Annually, FMCS saves the US Economy over $500 million by protecting household earnings, safeguarding company revenues and services, and ensuring the continuity of the robust commerce that promotes and underlines our national prosperity.”

He noted this savings is achieved with fewer than 150 mediators around the US, accounting for less than 0.0014% of the federal budget.

FMCS was contacted for comment.