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National Mediation Board: Progress Made on GAO Recommendations, but Actions Needed to Address Management Challenges

GAO-18-301 Published: Mar 22, 2018. Publicly Released: Mar 22, 2018.
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Highlights

What GAO Found

The National Mediation Board (NMB), which facilitates labor relations for railroads and airlines, has implemented five of the eight recommendations GAO made in its December 2013 and February 2016 reports (see table). The three remaining recommendations—on information security, information privacy, and rail grievance arbitration—are not yet fully implemented.

Regarding information security, GAO found that NMB has made progress but is only partially following key practices. On information privacy, GAO found that NMB was following two of four key privacy practices but has not yet, among other things, assessed the privacy risks of its information systems. Finally, the agency has taken steps to track rail grievance arbitration cases, but still cannot perform needed analysis of the data. At the same time, NMB reports its backlog of these cases has grown from about 2,400 at the end of fiscal year 2011 to over 8,400 at the end of fiscal year 2017. While NMB has taken some steps to reduce this growing number of cases, it does not have a specific plan to address the backlog. Without such a plan, the backlog could continue to increase.

Status of GAO's 2013 and 2016 Recommendations to NMB

Recommendation Area

Implemented

Not Fully Implemented

Strategic Plan

X

 

Performance Measures

X

 

Workforce Plan

X

 

Audit Response

X

 

Procurement

X

 

Information Security

 

X

Information Privacy

 

X

Rail Grievance Arbitration

 

X

Source: GAO analysis of National Mediation Board (NMB) documents | GAO 18-301

NMB also faces other management challenges. First, although federal employees may not use their public office for private gain, NMB does not have controls in place to ensure that this is followed. During this review, GAO found that a lack of internal controls may have permitted a former manager to represent himself as a government employee while conducting business for his private companies. GAO plans to refer the matter to the appropriate authority for further investigation. Second, NMB employees expressed concerns in a 2017 employee survey about issues such as promotions, training, and leadership. NMB officials said they have not yet taken actions in response to survey results or conducted an internal climate assessment, even though such actions were promised in NMB's strategic plan. Finally, some of NMB's travel and telework policies are inconsistent with federal law and not consistently enforced. For example, NMB management approved rental of a luxury car in one case, which may have been prohibited by federal regulations. Oversight of a cognizant Inspector General (IG), as suggested in GAO's 2013 report, might have prevented or minimized many of the issues GAO identified. NMB recently established an agreement with the National Labor Relations Board IG to operate a telephone fraud hotline; however, ongoing oversight is needed to identify and assist NMB with addressing agency challenges.

Why GAO Did This Study

NMB was established under the Railway Labor Act to facilitate labor relations for railroads and airlines by mediating and arbitrating labor disputes and overseeing union elections. The FAA Modernization and Reform Act of 2012 included a provision for GAO to evaluate NMB programs and activities every 2 years. GAO's previous reports, issued in December 2013 and February 2016, included eight recommendations for NMB based on assessments of policies and processes in several management and program areas.

This third report examines the (1) progress NMB has made to fully implement past GAO recommendations, and (2) challenges NMB faces in managing its operations. GAO reviewed relevant federal laws, regulations, and NMB documents, such as its procurement and travel policies; examined the results of a 2017 employee survey; interviewed NMB officials; and investigated a potential conflict of interest at NMB.

Recommendations

To improve its operations, NMB should develop and execute a plan to address the rail arbitration case backlog; follow up on employee survey results, including conducting an organizational climate assessment; and implement internal controls to ensure that employee requests for outside employment, travel, and telework comply with federal law. NMB agreed with these recommendations, and said that it is taking actions to address them. NMB also said that it is taking actions to fully implement the remaining recommendations from GAO's 2013 and 2016 reports.

Recommendations for Executive Action

Agency Affected Recommendation Status
National Mediation Board The Chairman of the National Mediation Board should develop and execute a plan to address the rail arbitration case backlog. (Recommendation 1)
Closed – Implemented
To implement this recommendation, NMB specified its plan to address the rail arbitration backlog in its 2021 Performance and Accountability Report (PAR). Its plan includes strategies such as reaching out to parties to encourage them to voluntarily move cases from arbitration to grievance mediation to help decrease the arbitration backlog. In addition, the Board reviews cases two years and older that have not progressed to arbitration.
National Mediation Board The Chairman of the National Mediation Board should develop and implement policies for approval and monitoring of employee requests for outside employment and other outside activities to prevent violations of ethics rules, consistent with Office of Government Ethics standards of conduct and federal internal control standards. (Recommendation 2)
Closed – Implemented
NMB agreed with this recommendation. NMB worked with Office of Government Ethics (OGE) to develop a policy on outside employment that details how employees should submit outside employment requests, consistent with OGE standards. NMB has incorporated the policy into annual and new employee ethics training. Once NMB approves an outside employment request, the agency monitors outside employment through employees' annual financial disclosure forms.
National Mediation Board The Chairman of the National Mediation Board should complete and take actions on the organizational climate assessment and survey results as a means to address employee concerns. (Recommendation 3)
Closed – Implemented
NMB agreed with this recommendation. In 2019 NMB administered an organizational climate assessment and has since taken actions to address key results of that assessment. For example, in 2021, NMB updated its travel policies to provide greater clarification regarding those policies. Also, in response to COVID-19, NMB has implemented virtual meetings to improve communication for staff meetings across departments, and individual offices have implemented virtual staff meetings as well.
National Mediation Board The Chairman of the National Mediation Board should revise NMB's travel policy and develop appropriate internal controls to ensure compliance with federal requirements for travel. (Recommendation 4)
Closed – Implemented
NMB agreed with this recommendation. In February 2021, NMB approved a new travel policy. NMB developed the new policy within the framework of the Federal Travel Regulation and the policy explicitly states that where there are omissions from the policy, the governing regulations will prevail. Likewise, NMB developed internal controls to ensure compliance with the new travel policy.
National Mediation Board The Chairman of the National Mediation Board should revise NMB's telework policy and develop appropriate internal controls to ensure compliance with federal requirements for telework. (Recommendation 5)
Closed – Implemented
NMB agreed with this recommendation. In September 2020, NMB approved a new telework policy. NMB established its new policy consistent with the Telework Enhancement Act of 2010, and the policy explicitly states that the policy is based on that Act. Likewise, NMB has developed internal controls to ensure compliance with the new telework policy.

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Compliance oversightAirlinesDispute settlementsGovernment employeesGrievance proceduresInformation securityInternal controlsLabor relationsManagement challengesPerformance measuresPrivacyRailroadsStrategic planSurveysTelecommutingTravelWorkforce planningMediation services