A coalition of major labor unions has filed a lawsuit aiming to stop former President Donald Trump‘s plan to effectively shut down the Federal Mediation and Conciliation Service (FMCS), a key agency that helps resolve labor disputes.
The lawsuit, filed Monday in federal court in Manhattan, argues that Trump’s March executive order to drastically reduce the agency’s operations violates Congress’s constitutional authority. According to the unions, only Congress has the power to create or eliminate federal agencies.
Since the order, over 90% of FMCS employees have been placed on administrative leave, and all field offices have been shut down. The lawsuit claims this move has left unions unable to access vital mediation services, increasing the risk of strikes and lockouts as many workers continue without contracts.
“Without FMCS, we’re left without support during critical contract negotiations,” the unions stated in the complaint.
The White House and FMCS have not commented on the lawsuit. However, the agency recently said it is still functioning and providing required mediation services.
Created in 1947, the FMCS plays a major role in helping settle labor disputes in both public and private sectors. Employers in the private sector must notify the agency before ending or changing union contracts, giving FMCS the opportunity to mediate. The agency must also get involved when a strike could affect healthcare or postal services.
Among the unions filing the suit are the American Federation of Government Employees, the American Federation of Teachers, and the AFL-CIO. Together, they represent hundreds of thousands of workers.
The lawsuit also highlights that in 2024 alone, FMCS received around 15,000 notices from employers and appointed more than 4,000 arbitrators. The unions argue that the executive order ignores this critical workload and undermines the agency’s legal role.
They are asking the court to block implementation of the order, reinstate laid-off staff, and fully restore mediation services.
The case is titled American Federation of Teachers v. Goldstein, filed in the U.S. District Court for the Southern District of New York, case number 1:25-cv-3072.
Related topics: