WASHINGTON, D.C. — In a sweeping move that could reshape the Department of Veterans Affairs workforce and reignite the national debate over federal unions, the VA has terminated collective bargaining agreements for most of its bargaining-unit employees.
The decision, announced last week, stems directly from President Donald Trump’s executive order excluding certain federal agencies from labor-management relations programs. Under the order, the VA also stopped withholding union dues from most employees’ paychecks in April.
The agency’s leadership argues the change is long overdue — and essential for ensuring that taxpayer dollars, staff time, and facility space are focused on Veterans rather than union activities.
“Too often, unions that represent VA employees fight against the best interests of Veterans while protecting and rewarding bad workers,” VA Secretary Doug Collins said. “We’re making sure VA resources and employees are singularly focused on the job we were sent here to do: providing top-notch care and service to those who wore the uniform.”
Who’s Affected — and Who’s Not
The VA notified five major unions that their contracts for most bargaining-unit employees are now terminated: the American Federation of Government Employees (AFGE), the National Association of Government Employees (NAGE), the National Federation of Federal Employees (NFFE), the National Nurses Organizing Committee/National Nurses United (NNOC/NNU), and the Service Employees International Union (SEIU).
Contracts remain in place for roughly 4,000 VA police officers, firefighters, and security guards — roles exempt under the executive order.
The VA’s Case for the Change
VA officials frame the move as a win for Veterans, citing three major benefits:
- More staff time with Veterans: In 2024 alone, more than 1,900 bargaining-unit employees logged over 750,000 hours of taxpayer-funded union time, including individuals earning over $200,000 annually. The VA says these hours will now be redirected to direct service.
- Better use of facilities: Over 187,000 square feet of VA office and clinical space has been used rent-free by union representatives, along with government-funded phones and computers. Officials argue reclaiming this space will allow for expanded patient care and administrative efficiency.
- Greater managerial flexibility: VA leaders say labor contracts have often restricted hiring, promotions, and disciplinary actions. Removing those barriers, they contend, will allow managers to reward high performers, hold poor performers accountable, and implement reforms more quickly.
A History of Clashes
Union opposition to VA reforms is nothing new. The department points to multiple high-profile disputes as evidence of what it calls obstructionism:
- The MISSION Act: AFGE, NFFE, and NNOC/NNU opposed this bipartisan law, which expanded access to private-sector care for Veterans.
- Accountability and Whistleblower Protection Act: NFFE has supported rescinding this law, which was designed to shield whistleblowers and remove employees guilty of misconduct.
- Reinstatement of Fired Workers: AFGE worked with the Biden Administration to reinstate more than 100 VA employees fired for misconduct during Trump’s first term, as well as securing nearly $134 million in back pay for roughly 1,700 others dismissed for similar reasons.
Potential Impact and Fallout
For supporters, this is a course correction — a way to cut through bureaucracy and ensure that the VA’s $300 billion annual budget is laser-focused on Veterans’ needs. For critics, it’s a dangerous precedent that strips workers of collective bargaining rights and weakens protections against mismanagement and retaliation.
Either way, the stakes are enormous. The VA is one of the largest federal agencies, serving millions of Veterans across more than 1,200 facilities. Changes to how its workforce is managed could have a ripple effect not only in healthcare delivery but in the broader conversation about the role of unions in the federal government.
With President Trump’s executive order reshaping labor relations across multiple agencies, the VA’s move is likely to be just one front in a larger fight — one where the balance between worker rights and public service will be tested in real time.
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