VA cuts ties with federal unions, ending contracts for thousands of workers

 August 11, 2025

Veterans Affairs Department terminated collective bargaining agreements with most federal unions on Wednesday.

According to Military Times, the decision affects hundreds of thousands of VA employees across multiple unions, including the American Federation of Government Employees (AFGE), which represents approximately 300,000 VA workers. The VA cited a need to improve veteran services and increase accountability among staff as reasons for the move.

Department officials stated the terminations would make it easier to promote high-performing employees, hold poor performers accountable, and enhance services for veterans. VA Secretary Doug Collins specifically criticized unions for allegedly fighting "against the best interests of veterans while protecting and rewarding bad workers."

Widespread Impact On VA Workforce And Services

The contract terminations affect members of several major unions, including the American Federation of Government Employees, the National Association of Government Employees, and the National Nurses United. About 80% of the VA's 450,000 employees are union members, making this decision one of the most significant labor actions in recent federal government history.

Only unions representing approximately 4,000 VA police officers, firefighters, and security guards will maintain their agreements. Department officials explained that the executive order that enabled these terminations does not apply to these specific positions.

The VA also claimed that breaking union contracts would free up more than 187,000 square feet of office space currently being used by union representatives. This space could potentially be repurposed for veteran services or other departmental needs.

Legal Battles And Union Resistance Continue

The termination of contracts follows months of tension between the Trump administration and federal employee unions. In April, the VA stopped withholding union dues from most employee paychecks, citing an executive order that excluded certain federal agencies from labor-management relations programs.

A recent court decision enabled Wednesday's actions, as a federal appeals court paused a preliminary injunction that had previously blocked department heads from making changes to collective bargaining agreements. This legal development cleared the way for the VA to proceed with terminating the contracts.

AFGE National President Everett Kelley condemned the move as "retaliation against AFGE members for speaking out against illegal, anti-worker, and anti-veteran policies." Union leaders have promised continued legal challenges to the administration's actions, arguing that collective bargaining rights are constitutionally protected.

Administration Cites Efficiency And Veteran Care

VA Secretary Collins framed the decision as necessary to improve care for veterans by removing barriers to efficient management. The administration has argued that union agreements have hampered efforts to discipline underperforming employees and implement needed reforms within the department.

The move aligns with broader efforts by the Trump administration to reshape federal employment practices. Officials have consistently pushed for more flexibility in hiring and firing federal workers, particularly in agencies like the VA that directly serve vulnerable populations.

Union representatives have countered these claims, arguing that collective bargaining protects workers' rights and ensures quality care for veterans. National Nurses United accused the administration of "waging class warfare against working people of America" and vowed to continue fighting the decision.

Broader Implications For Federal Labor Relations

The VA's decision represents one of the most significant challenges to federal employee unions in decades. With more than 1.3 million government workers represented by unions at the start of 2025, the outcome of this conflict could set precedents for labor relations across the federal government.

Unions have filed numerous lawsuits against the president's proposed changes to the federal bureaucracy. They've also expressed concerns about what they describe as efforts to "privatize" VA services by directing more funding toward civilian healthcare providers rather than VA facilities.

The ongoing dispute highlights fundamental differences in vision for the VA's future and the role of organized labor in government service. As legal challenges proceed, hundreds of thousands of VA employees now face uncertainty about their workplace rights and representation.

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