VA terminates union contracts, impacting over 377,000 federal workers
TOI World Desk | TIMESOFINDIA.COM | Aug 07, 2025, 23:14 IST
( Image credit : TIL Creatives )
The Department of Veterans Affairs has terminated collective bargaining agreements with major labor unions, impacting over 377,000 employees. VA Secretary Doug Collins cited union resistance to reforms as the reason, while union leaders allege political motivation and concerns over privatization. The move follows an executive order limiting union power, a decision recently upheld by the Ninth Circuit Court of Appeals.
The U.S. Department of Veterans Affairs has terminated collective bargaining agreements with five major labor unions, a move that affects more than 377,000 federal employees—over 75 percent of the agency’s workforce. The abrupt decision, effective immediately, follows a March executive order that limited union power across federal agencies, citing national security concerns.
VA Secretary Doug Collins said the action was driven not by national security but by continued union resistance to key departmental reforms. “Too often, unions that represent VA employees fight against the best interests of veterans while protecting and rewarding bad workers,” Collins said in a statement. “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.”
The canceled contracts covered a broad range of VA employees, including nurses, administrative staff, and healthcare workers. Only certain public safety positions—such as police officers, security personnel, and firefighters—remain protected, affecting about 4,000 individuals.
Union leaders condemned the move, describing it as politically motivated and harmful to both workers and the veterans they serve. The American Federation of Government Employees, which represents nearly 319,000 of the impacted workers, called the decision “outrageous.” AFGE National President Everett Kelley alleged the VA was targeting unions for opposing privatization plans and staffing cuts. “We don't apologize for protecting veteran healthcare and will continue to fight for our members and the veterans they care for,” Kelley said.
Kelley pointed to previous union efforts that halted recommendations to close rural VA hospitals and resisted job reductions that could have affected essential services.
Although the March executive order invoked national security as justification for curbing union power, the VA’s most recent statement made no reference to that rationale. However, the legal foundation for the action remains intact. Last week, the Ninth Circuit Court of Appeals upheld the order, rejecting union arguments that the move was retaliatory. The court concluded that the president holds the authority to act in the name of national security, even if political motivations are involved.
The implications of the terminations are not yet fully clear. While the VA maintains that the action will enhance efficiency and prioritize veterans’ care, union officials argue it will destabilize the workforce and degrade the quality of services provided to former military personnel. Legal challenges are expected to continue in the coming months.
VA Secretary Doug Collins said the action was driven not by national security but by continued union resistance to key departmental reforms. “Too often, unions that represent VA employees fight against the best interests of veterans while protecting and rewarding bad workers,” Collins said in a statement. “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.”
The canceled contracts covered a broad range of VA employees, including nurses, administrative staff, and healthcare workers. Only certain public safety positions—such as police officers, security personnel, and firefighters—remain protected, affecting about 4,000 individuals.
Union leaders condemned the move, describing it as politically motivated and harmful to both workers and the veterans they serve. The American Federation of Government Employees, which represents nearly 319,000 of the impacted workers, called the decision “outrageous.” AFGE National President Everett Kelley alleged the VA was targeting unions for opposing privatization plans and staffing cuts. “We don't apologize for protecting veteran healthcare and will continue to fight for our members and the veterans they care for,” Kelley said.
Kelley pointed to previous union efforts that halted recommendations to close rural VA hospitals and resisted job reductions that could have affected essential services.
Although the March executive order invoked national security as justification for curbing union power, the VA’s most recent statement made no reference to that rationale. However, the legal foundation for the action remains intact. Last week, the Ninth Circuit Court of Appeals upheld the order, rejecting union arguments that the move was retaliatory. The court concluded that the president holds the authority to act in the name of national security, even if political motivations are involved.
The implications of the terminations are not yet fully clear. While the VA maintains that the action will enhance efficiency and prioritize veterans’ care, union officials argue it will destabilize the workforce and degrade the quality of services provided to former military personnel. Legal challenges are expected to continue in the coming months.