In a bold move that could redefine federal labor relations, the Department of Veterans Affairs has terminated union contracts for most of its employees, citing the need for reform and accountability.

Significant Workforce Impact

In August 2025, VA Secretary Doug Collins announced the termination of union contracts covering most employees at the Department of Veterans Affairs. This decision affects nearly 320,000 to 425,000 workers, making it one of the most extensive federal workforce changes in recent years. Collins accuses unions of obstructing necessary reforms and shielding underperforming workers, which he claims goes against veterans’ best interests.

The move is aligned with a March 2025 executive order by President Trump, which restricted federal labor-management relations and allowed agency heads to request exemptions. This action is part of a broader federal policy aimed at streamlining operations and increasing accountability within federal agencies.

Union Opposition and Political Response

Major unions, including the American Federation of Government Employees (AFGE), have labeled the contract termination as a political attack. They argue it is a retaliation for their opposition to VA policies. The unions assert that this decision will harm both employees and the quality of veteran care. AFGE President Everett Kelley condemned the move as a direct attack on labor rights, emphasizing the potential negative impacts on workforce morale and service quality.

In response, a group of U.S. Senators led by Sen. Mazie Hirono has urged Secretary Collins to exempt VA employees from the executive order. They warn that the termination of union contracts could harm veterans and deteriorate workforce morale, calling for a reconsideration of the decision to ensure veteran care is not compromised.

Implications for the Future

The termination of union contracts at the VA sets a precedent for federal labor relations, potentially influencing other agencies and future administrations. In the short term, the loss of collective bargaining rights could lead to increased disciplinary actions and possible workforce reductions. This may result in heightened labor unrest and legal challenges from unions seeking to protect their members’ rights.

In the long term, the restructuring of VA workforce management could lead to a decline in employee morale and retention, with uncertain impacts on the quality of care provided to veterans. The full effects of these changes will depend on how the reforms are implemented and overseen, with a close watch on any disruptions to services that veterans rely on.

Sources:

Veterans Affairs Terminates Union Contracts: What It Means for Federal Workers Nationwide

Veterans Affairs Cuts Ties with Unions

Hirono, Colleagues Demand Collins Exempt VA Employees from Trump’s Retaliatory Executive Order

VA Secretary Addresses Benefits Rumors