Generally, management and labor have accepted the grievance procedure for resolving disputes arising out of the interpretation of the labor agreement. However, in grievance handling some problems have developed. Employees appear increasingly to prefer direct action to the procedural and often delayed deliberation of the grievance arbitration procedure. It is estimated that approximately one-third of strikes in the United States occur while a collective bargaining agreement is in force. Many labor-management relations people concur that strikes occur because the grievance procedure involves extensive delays, red tape, complicated procedures and additional costs. Increasingly, mediation agencies are being appealed to as a neutral party in expediting grievance resolution. This report contains the results of a study to assess the extent of state mediation agencies activity in grievance mediation.