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Kenneth E. Moffett

Deputy Director
Federal Mediation and Conciliation Service

Kenneth E. Moffett was appointed Deputy Director of the Federal Mediation and Conciliation Service on June 2, 1977.

He was appointed Director of Mediation Services of FMCS in 1972, and in this position Moffett directed the mediation of labor relations disputes in the private, public and federal sectors.

In 1969, former director J. Curtis Counts designated Moffett as his Special Assistant. During this period, Father Leo C. Brown, S.J., Chairman of the Atomic Energy · Labor-Management. Relations Panel, named Moffett executive secretary of the panel and he continues to serve in this capacity.

He was appointed a trouble-shooter for the Service in 1967, mediating disputes of national significance out of the Washington, D.c. national office.

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Commissioned a mediator with FMCS in 1961, Moffett served in Washington, D.C.., for a year and in Cleveland, Ohio, for five years.

From 1957 to 1961, he served as an International Representative for District 50, United Mine workers of America.

Moffett was born on September 11, 1931, in Lykens, Pennsylvania. He served in the U. S. Navy. Following this service, he attended the University of Maryland, and graduated in 1958. He is a member of the Society of Professionals in Dispute Resolution, and held the office of president for the 1975-1976 term.

July 1977

Statement by

Wayne L. Horvitz, Director

Federal Mediation and Conciliation Service

before the

Labor, Health, Education, and Welfare Subcommittee

of the

House Committee on Appropriations

Mr. Chairman and members of the Committee :

It is my pleasure to present to you the Fiscal Year

1979 appropriation for the Federal Mediation and Conciliation

Service.

Let me begin by outlining for you what levels of

activity we anticipate for the fiscal year in our major pro

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will rise to 10,700 from 9,707 in FY 1977, and

our public sector case closings will rise to

1,000 in FY 1979 from 821 in FY 1977.

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26,103 panels to the parties, a record high and

an increase of 18.2 percent over FY 1976.

This

will increase to an anticipated 32,775 in FY 1979.

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first order of business was to take an active role in the con

tract dispute between the East and Gulf Coast Longshoremen and

their employers. Although there was a two-month strike growing out of the dispute, the stoppage was concluded without the resort to the traditional script for these dock strikes, which

called for invocation of the Taft-Hartley Law's 80-day cooling off period, followed by a strike of even longer duration.

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From there, the Service went immediately into coal

industry negotiations and a strike which has been on since December 6. We are still activel: involved in assisting the

parties in their attempts to reach agreement.

Once that is behind us, however, I don't expect that

we will remain idle.

Today's economic and business climate is

putting the collective bargaining process to some

severe tests.

A number of competitive pressures are affecting a broad range

of industries. High among these pressures is the impi.ct of foreign imports on the American market. At the same time, in

flation is pushing up employers' operating costs, and consumers are resisting companies' attempts to pass along higher prices

their increased wage and materials costs.

In this conflict situation, employers are taking a

tougher bargaining stance.

On the union side, the continuing rise of inflation

and high unemployment is having the effect of concentrating

union bargaining programs on improved wage protections and job security.

We expect another development to have an impact on

the bargaining process also.

In the past few months, there

has been a .noticeable hardening of relations between labor and

management.

25-260 (Pt. 7) O - 78 - 41

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There are many factors contributing to this. competitive pressures I have mentioned is one. Management now perceives unions as being weaker than in the past, because they are declining numerically in the private sector of the economy; their membership has dropped to just over 20 percent

of the work force.

Seeing this, management to some degree is ready to test out the bargaining relationship to see what it will bear. There is the feeling among many employers that for many years they have been giving away far more at the bargairing table

than they should, and that perhaps this is a good time to get

it back.

In this climate, we expect our disputes caseload in

both the private and public sectors to increase significantly

in both FY 1978 and 1979.

Among the most demanding and time consuming of the

Service's cases are those involving first contracts.

Each year the Service is involved in about 2,000 of these. Because of the

parties' inexperience in the techniques of collective bargaining,

negotiations often are lengthy and likely to degenerate into

strikes.

The mediators must often act as an educator in these

negotiations. FMCS estimates that the increase in organization by unions in the South and Southwest sections of the nation, and in the growing health care industry, will mean an increase in first contract negotiation situations.

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