Elon Musk’s “department of government efficiency” (Doge) effectively shut down a 79-year-old federal agency that resolves labor disputes, saving only an estimated 0.0014% of the federal budget.

The Federal Mediation and Conciliation Service (FMCS), an agency that helps prevent and resolve disputes in the workplace, has closed most of its services and put employees on leave, with firings expected to follow.

Jefferson Dedrick, a commissioner at FMCS, stated that the administration issued an executive order for the agency’s closure, and his mid-level managers informed the commissioners about the effective shutdown at the end of the business day.

The agency handled several notable strikes, such as the Boeing strike last fall.

It’s surprising because the agency, which has always been non-controversial, saves the economy more money by preventing work stoppages than what it costs to run. Its closure is also a blow to efficient dispute resolution methods used by federal agencies.

This move is expected to worsen and prolong labor strikes and lockouts in the future.

The FMCS was established by Congress in 1947 and its closure follows an executive order by Donald Trump to dismantle several federal agencies, including FMCS.

Dedrick highlighted that FMCS annually saves the US economy over $500 million with only fewer than 150 mediators, which is less than 0.0014% of the federal budget.

FMCS was reached out for comment.