[Excerpt] This report discusses labor-management relations at the Federal Aviation Administration (FAA) and the 2006 implementation of a new labor contract on air traffic controllers. The FAA’s ability to implement the new contract with its controllers was arguably supported by a mediation procedure prescribed by federal law. Concern over the fairness of this procedure has prompted Congress to consider legislation that would allow for the use of binding arbitration to resolve negotiation impasses between the agency and the exclusive bargaining representatives of its employees. This report provides background information on the mediation procedure, discusses litigation involving the FAA and two labor organizations, and examines legislative attempts to amend the existing system.