PREPARED STATEMENT OF H. STEPHAN GORDON, GENERAL COUNSEL, FEDERAL LABOR RELATIONS AUTHORITY, BEFORE THE SUBCOMMITTEE ON TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT, HOUSE COMMITTEE ON APPROPRIATIONS, REGARDING THE AUTHORITY'S APPROPRIATIONS ESTIMATES FOR FISCAL YEAR 1981

Mr. Chairman and Members of the Committee, I am pleased to have the opportunity to appear before you today to discuss this fiscal year 1981 budget request for the Office of the General Counsel of the Federal Labor Relations Authority. The Office of the General Counsel is responsibile for investigating alleged unfair labor practices under the Federal Service Labor-Management Relations Statute. The office is also responsible for prosecuting unfair labor practice complaints before administrative law judges and for processing representation cases through investigation, and through hearing and election as required. The Office of the General Counsel is responsible for exercising general supervision over all employees in the Regional Offices, and for the effective and efficient operation and administration of the Authority's nine Regional Offices. The Office also provides advice, assistance and review of all phases of field office performance to ensure adherence to case handling standards. In addition to the Regional Offices, the Office of the General Counsel includes a Division of Appeals, which is responsible for reviewing appeals from the refusal of Regional Directors to issue complaints on unfair labor practice charges.

The procedures used by the Office of the General Counsel to process the caseload with which we are faced are outlined in considerable detail in the budget submission and I believe it would serve no useful purpose to burden this record with further explanations. I shall, of course, be happy to answer any questions you may have in this regard.

The Chairman has already emphasized the tremendous growth in caseload over our previous levels. In this regard, permit me to stress the fact that we have no control over this caseload but rather react to unfair labor practice charges and questions of representation which are filed with a Regional Office by labor organizations, agencies or individuals.

For fiscal year 1981, the agency is requesting $8,695,000 and 246 positions for the operation of the General Counsel. This represents an increase of 42 budget positions and $783,000 over the previous year. These positions, if approved, are all earmarked for activities directly associated with case processing. They are necessary for the Office of the General Counsel to process the incoming caseload in a reasonably effective and timely manner.

I particularly welcome the opportunity to appear before you today, because this is really my first opportunity to discuss the Agency's budget request insofar as it pertains to the Office of the General Counsel. Thus, while the Agency has been in existence for a little more than a year, the Office of the General Counsel really became operational only about 7 months ago, when the Senate confirmed my appointment as General Counsel. During that relatively short period of time, the monthly case intake has steadily increased by approximately 160 percent from the agency's original estimates in fiscal year 1979. More specifically, while our representation caseload has held fairly constant at approximately 52 cases received monthly, the number of cases involving alleged unfair labor practices has increased from an average of 130 cases filed monthly during the first three months of the program, to an average of 333 new cases filed monthly during the last three months of fiscal year 1979. More significantly, even during the first 4 months of the current fiscal year, the ULP case intake has risen to an average of 360 cases per month. This sharp steady rise in ULP case intake clearly indicates that we will undoubtedly exceed the case intake figures projected for fiscal year 1980 as well as those projected for fiscal year 1981.

Mr. Chairman, I stress this fact not only in order to emphasize the need for the requested increases in staff, but also as an explanation that our prior overly conservative estimates were made in a relative vacuum. Unlike old-line agencies such as NLRB, this agency, being brand new, had no prior guidelines against which to make realistic assessments. It is only now that a potential caseload picture is emerging which permits us to evaluate on a somewhat realistic basis what workload we are facing. Moreover, I respectfully submit that while even now our anticipated case intake projections are somewhat speculative, they are still, if anything, overly conservative.

On the brighter side, I am happy to be able to report to the committee that we have made significant progress in taking dispositive action on these cases.

Thus, to be more specific, from January 11, 1979, the effective date of the Act, until January 31, 1980, a total of 5,188 cases were filed. (778 cases were transferred from the Department of Labor; 2,079 cases were filed between January 11, 1979, and

August 1, 1979, the date I assumed the Office of General Counsel; and 2,331 additional cases have been filed between August 1, 1978, and January 31, 1980-for a total of 5,188 cases). During the same period, January 11, 1979 to January 31, 1980, we have disposed of 3,518 cases. (704 cases were disposed of between January 11, 1979, and August 1, 1979, the date of my confirmation; 2,814 cases have been disposed of during the period of August 1, 1979, and January 31, 1980). The fact that this was accomplished during a period when we also had to build the very foundations for this new Agency; when we had to recruit and train a new staff; and, as noted in two separate General Accounting Office reports, had to, and still have to, operate under almost impossible space and physical conditions, speaks, I believe, rather well for the dedicated men and women who serve in this new program. Yet, despite these accomplishments and in spite of the substantial increases in productivity over the past year, it will become increasingly difficult for the Agency to keep pace with its growing caseload in a timely fashion. So far this year, it is taking approximately 4 months-111 median days-to make our initial decision in a case. This figure does not include times to conduct hearings in cases wherein a complaint is issued, to conduct elections, or to take other subsequent actions.

In order to keep case processing time to an absolute minimum; in order to preserve our limited resources; and because of a firm belief that the voluntary adjustment of disputes is essential to good labor-management relations, we are making every effort to encourage the parties to settle these cases prior to issuance of complaint. Currently, approximately 42 percent of all unfair labor practice cases filed with the Office of the General Counsel have had merit. After full and careful investigation, 58 percent have been dismissed or withdrawn for lack of merit. Of the 42 percent of the cases which were found to have merit, we have been able to obtain voluntary settlements prior to issuance of complaint in approximately 75 percent of the cases. These statistics approximate, and indeed, compare most favorably with those in the private sector.

But again, I must reiterate that in view of a constantly rising caseload, a factor over which we have no control, the Agency still faces major case handling problems. It is for this reason that all of the requested additional positions are earmarked for case processing functions; i.e. (1) the investigation of unfair labor practice charges; (2) the prosecution and settlement of unfair labor practice charges found to have merit; and (3) the resolution of appeals of dismissals of unfair labor practice charges by the Regional Offices.

With respect to the investigation of unfair labor practice charges, we are asking for 25 additional positions. During 1979, we opened a total of 2,348 cases and projected that we would open over 4,000 cases in 1980. We are currently already running ahead of that projection. In fact, we are currently approaching, and will in all probability exceed, our 1981 projection of 4,200 cases annually. The productivity of the staff and dispositive actions taken are increasing also. We took dispositive action on 1,403 cases last year, and anticipate doubling that number to over 2,800 cases this year. With the additional 25 positions being requested in this category, over 4,000 dispositive actions will be taken in 1981, matching our projected intake for that year. Having reached this level, we can then concentrate on eliminating the backlogs and reducing the case processing times to a manageable level. Without this increase, backlogs are projected to reach 13 months in 1981.

Of the remaining positions requested, thirteen are necessary to keep pace with the increased number of prosecutions and settlements resulting from the increased number of cases being investigated. So far we have issued a total of 418 complaints. Assuming a 43 percent merit factor in fiscal year 1981, a total of 1,744 merit cases are projected to require settlement action or to result in the issuance of a complaint and prosecution. Receving the additional 13 positions requested will enable us to take action on approximately 1,100 merit cases during 1981. Even at that staffing level the backlog of cases awaiting settlement or prosecution will increase to approximately 8 months in fiscal year 1981. Without this increase, backlogs would grow to 21 months in 1981.

In addition to prosecutions and settlements, the increased number of cases being investigated will result in an increased number of dismissals of unfair labor practice charges by Regional Directors. Currently, approximately 40 percent of all dismissals are being appealed. With an estimate of approximately 1,150 new appeals being filed in 1981, we face a problem of significant backlogs in processing these appeals. The four additional staff positions requested in this case handling area will enable us to handle 23 percent more cases than we could otherwise, and thereby significantly reduce backlogs from a potential 19 months level.

It has been my pleasure to appear before you today. I want to echo the remarks of the Chairman that we have accomplished a great deal during our first year of

operation. However, I also believe that the next two years are critical to a successful Federal service labor-management relations program. With our rapidly expanding caseload, I believe it is essential that we receive the additional resources which we are requesting. I appreciate your time, and will be happy to answer any questions you might have.

Ronald Haughton, Chairman of the Federal Labor Relations Authority, has been active in labor-management affairs and the whole area of dispute resolution since he received an M.A. in Labor Economics at the University of Wisconsin in 1938.

Mr. Haughton has been an apprentice electrician for General Electric. He has worked with the Washington State Unemployment Compensation Commission, the Rockefeller Foundation, the U.S. Social Security Board, the War Labor Board, and the U.S. Department of Labor. During 1971-1972, he served as President of the Board of Mediation for Community Disputes in New York City. He is Professor Emeritus and a former Vice President at Wayne State University. He also served for over 20 years as Co-Director of the Institute of Labor and Industrial Relations of the University of Michigan and Wayne State.

Mr. Haughton has arbitrated some 4,000 cases in the public and private sectors. He has chaired several Presidential Emergency Boards and has been a permanent umpire for such companies as Ford, Goodrich, Bendix, Whirlpool, Armour, Clark Equipment Co., Columbia Gas, and Parke, Davis & Co.

Mr. Haughton has acted as a consultant to the Departments of State, Labor, and Defense, the Executive Office, and several foreign governments. He has drafted public employment legislation for the states of California and Michigan and has served as a Fact Finder for these and a number of other state and city jurisdictions. He is a member of the National Academy of Arbitrators, the Society for Professionals, in Dispute Resolution, the Society of Federal Labor Relations Professionals, the Industrial Relations Research Association, and a member of the Board of Directors of the American Arbitration Association. Mr. Haughton is a lifetime member of the N.A.A.C.P.

President Jimmy Carter appointed Hank Frazier a Member of the Federal Labor Relations Authority on January 11, 1979. Member Frazier was confirmed by the Senate on June 27 and commissioned to a 1-year initial term on July 2, 1979.

The Authority is an independent agency in the Executive Branch and administers the Federal Service Labor-Management Relations Statute. It is responsible for adjudicating representation and unfair labor practice cases, negotiability disputes and appeals from arbitration awards. The Authority also provides leadership in establishing labor relations policies under the Statute.

Frazier had served previously for 6 years as Executive Director of the Federal Labor Relations Council (the agency replaced by the Federal Labor Relations Authority). He joined the Council when it was established in 1970 as Chief of the Program Division and then served as Deputy Executive from September 1971 until his appointment as Executive Director in January 1973.

Frazier previously spent 11 years in personnel administration with the Department of the Army, serving in both operating organizations in the field and in staff organizations in the Pentagon. Immediately prior to joining the Council, he was Chief of Civilian Personnel Policy and Civil Rights in the Office of the Assistant Secretary for Manpower. While with Army he received from the Secretary of the Army the Exceptional Civilian Service Award-the Department's highest award for civilian personnel-and the first annual W.H. Kushnick Award for Outstanding Achievement in Civilian Personnel Administration in the Department. In the mid-1950's, he was a rank-and-file member of the Laborers' International Union of North America (AFL-CIO) and the Aluminum Workers International Union (AFL-CIO).

Frazier hold a B.A. with Honors in Political Science from the University of Virginia, a J.D. with Honors from George Washington University Law School, and an LL.M. in Labor Law from Georgetown University Graduate Law Center. He is a member of Phi Beta Kappa, the Order of the Coif, the Virginia Bar, the Bar of the District of Columbia and the Bar of the Supreme Court of the United States. He is an Air Force veteran.