Sec. 601. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM

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## SEC. 601 FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM Section 40122(a) is amended— ####

(1)by redesignating paragraphs

(3)and

(4)as paragraphs

(4)and (5), respectively; and ####

(2)by striking paragraph

(2)and inserting the following: > > #### “(2) Dispute resolution > > > ##### “(A) Mediation > > If the Administrator does not reach an agreement under paragraph

(1)or the provisions referred to in subsection (g)(2)(C) with the exclusive bargaining representative of the employees, the Administrator and the bargaining representative— > > > ###### “(i) > > shall use the services of the Federal Mediation and Conciliation Service to attempt to reach such agreement in accordance with part 1425 of title 29, Code of Federal Regulations (as in effect on the date of enactment of the FAA Modernization and Reform Act of 2012); or > > > ###### “(ii) > > may by mutual agreement adopt alternative procedures for the resolution of disputes or impasses arising in the negotiation of the collective-bargaining agreement. > > > ##### “(B) Mid-term bargaining > > If the services of the Federal Mediation and Conciliation Service under subparagraph (A)(i) do not lead to the resolution of issues in controversy arising from the negotiation of a mid-term collective-bargaining agreement, the Federal Service Impasses Panel shall assist the parties in resolving the impasse in accordance with section 7119 of title 5. > > > ##### “(C) Binding arbitration for term bargaining > > > ###### “(i) Assistance from federal service impasses panel > > If the services of the Federal Mediation and Conciliation Service under subparagraph (A)(i) do not lead to the resolution of issues in controversy arising from the negotiation of a term collective-bargaining agreement, the Administrator and the exclusive bargaining representative of the employees (in this subparagraph referred to as the ‘parties’) shall submit their issues in controversy to the Federal Service Impasses Panel. The Panel shall assist the parties in resolving the impasse by asserting jurisdiction and ordering binding arbitration by a private arbitration board consisting of 3 members. > > > ###### “(ii) Appointment of arbitration board > > The Executive Director of the Panel shall provide for the appointment of the 3 members of a private arbitration board under clause

(i)by requesting the Director of the Federal Mediation and Conciliation Service to prepare a list of not less than 15 names of arbitrators with Federal sector experience and by providing the list to the parties. Not later than 10 days after receiving the list, the parties shall each select one person from the list. The 2 arbitrators selected by the parties shall then select a third person from the list not later than 7 days after being selected. If either of the parties fails to select a person or if the 2 arbitrators are unable to agree on the third person in 7 days, the parties shall make the selection by alternately striking names on the list until one arbitrator remains. > > > ###### “(iii) Framing issues in controversy > > If the parties do not agree on the framing of the issues to be submitted for arbitration, the arbitration board shall frame the issues. > > > ###### “(iv) Hearings > > The arbitration board shall give the parties a full and fair hearing, including an opportunity to present evidence in support of their claims and an opportunity to present their case in person, by counsel, or by other representative as they may elect. > > > ###### “(v) Decisions > > The arbitration board shall render its decision within 90 days after the date of its appointment. Decisions of the arbitration board shall be conclusive and binding upon the parties. > > > ###### “(vi) Matters for consideration > > The arbitration board shall take into consideration such factors as— > > > ###### “(I) > > the effect of its arbitration decisions on the Federal Aviation Administration’s ability to attract and retain a qualified workforce; > > > ###### “(II) > > the effect of its arbitration decisions on the Federal Aviation Administration’s budget; and > > > ###### “(III) > > any other factors whose consideration would assist the board in fashioning a fair and equitable award. > > > ###### “(vii) Costs > > The parties shall share costs of the arbitration equally. > > > #### “(3) Ratification of agreements > > Upon reaching a voluntary agreement or at the conclusion of the binding arbitration under paragraph (2)(C), the final agreement, except for those matters decided by an arbitration board, shall be subject to ratification by the exclusive bargaining representative of the employees, if so requested by the bargaining representative, and the final agreement shall be subject to approval by the head of the agency in accordance with the provisions referred to in subsection (g)(2)(C).” > .