VA terminates major union contracts and it will impact over 400,000 federal workers. What's at stake for you?

The Department of Veteran Affairs (VA) is terminating collective bargaining agreements with several key government unions representing its employees, a move that would affect approximately 360,000 healthcare workers. VA has severed ties with most federal unions, including the National Nurses Organizing Committee/National Nurses United (NNOC/NNU), terminating existing collective bargaining agreements effective August 6, 2025.

In an announcement Wednesday, the VA said the move is in response to an executive order President Donald Trump signed in March that nixed collective bargaining rights for many federal workers in the name of national security. The termination of union contracts coincides with the VA's plan to reduce its workforce by approximately 30,000 positions by the end of fiscal year 2025.

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VA terminates union contracts

The VA has terminated collective bargaining agreements for most of its bargaining-unit employees, stripping hundreds of thousands of workers from union protections. A White House fact sheet about the Trump's order cited national security concerns, adding, "Certain Federal unions have declared war on President Trump's agenda."

The decision stands to affect more than 400,000 federal workers, reports The New York Times. The agency's decision follows a federal appellate court ruling on Friday that lifted a lower court's ban on ending union contracts.

In a statement issued on August 6, the federal agency said it had terminated contracts with five major unions: 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).

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The VA said the move, which is effective immediately, would enable staff to "spend more time with Veterans." The agency added that in 2024, almost 2,000 union employees "spent more than 750,000 hours of work on taxpayer-funded union time."

According to the agency, without those duties, "those hours can now be used to serve Veterans instead of union bosses." The agency also said labor contracts had limited managers' ability to hire, promote and reward high-performing employees, as well as to hold underperforming staff accountable.

“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 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.”

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Five major unions impacted

The VA said it notified five major unions that their contracts for “bargaining-unit employees” were being terminated: the American Federation of Government Employees; the National Association of Government Employees; the National Federation of Federal Employees; the National Nurses Organizing Committee/National Nurses United; and the Service Employees International Union.

Contracts covering the roughly 4,000 VA police officers, firefighters or security guards represented by those unions will remain in place, the agency said. The decision is not expected to impact approximately 4,000 VA police officers, firefighters, or security guards represented by the unions, as those roles are exempt from the executive order.

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The announcement has sparked strong backlash from several affected unions. AFGE President Everett Kelley accused the administration of retaliating against the union for "speaking out against its unlawful, anti-worker, and anti-veteran agenda."

The move will also open up more physical space for veterans’ needs, the VA said. “More than 187,000 square feet of its office and clinical space is currently being used by union representatives free of charge,” the agency said, adding that it has “cost VA millions of dollars in lost rent and expenses.”

The agency also says labor contracts have restricted managers’ ability to hire, promote and reward high performing employees and to hold poor performers accountable.