U.S. Military veteran and amputee Lloyd Epps walks after doctors serviced his prosthetic leg at the Veterans Administration hospital on Jan. 29, 2014 in New York City. Critics of the Trump administration's decision to end collective bargaining agreements for its union workforce say it will make it harder for the VA to recruit and retain skilled medical staff. (Photo by John Moore/Getty Images)
In a sweeping policy shift that could reshape labor relations at one of the largest federal agencies, the U.S. Department of Veterans Affairs has terminated collective bargaining agreements for most of its unionized workforce, citing a need to better serve veterans and implement long-stalled management reforms.
The decision, announced last week, follows an executive order from President Donald Trump that excludes certain agencies from labor-management relations programs on national security grounds.
The VA said it acted under that order to end union contracts covering hundreds of thousands of employees represented by five major labor organizations, including the American Federation of Government Employees, the National Association of Government Employees, the National Federation of Federal Employees, National Nurses United, and the Service Employees International Union.
The impact could be particularly significant in North Carolina, which is home to more than 600,000 veterans and has more than 17,000 VA employees working in hospitals, clinics, and benefits offices across the state — including major medical centers in Asheville, Durham, Fayetteville and Salisbury.
North Carolina state Sen. Val Applewhite, a Democrat who represents Cumberland County which is home to Fort Bragg, said she was not surprised that the Trump administration would target collective bargaining, but is “disappointed” that he chose to start with the VA.
“This president clearly has no boundaries, and clearly has no shame, and clearly has no respect for veterans,” she said. “If we don’t stand up this midterm and make some adjustments in Congress, we’re going further and further down into this deep, dark hole,” Applewhite said.
“How many lives will be impacted?” she asked “How many veterans could die or linger with medical issues because of this?”
While the VA will maintain agreements for approximately 4,000 police officers, firefighters and security guards — occupations exempt from the executive order — the vast majority of bargaining-unit employees across the country are now operating without formal union contracts.
The move drew swift criticism from labor groups but was celebrated by Trump allies and VA leadership as a long-overdue realignment of priorities at an agency that serves more than 9 million veterans annually.
“This decision is good news for Veterans, families, caregivers and survivors,” VA Secretary Doug Collins said in a statement. “Too often, unions that represent VA employees fight against the best interests of Veterans while protecting and rewarding bad workers. 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.”
VA officials said the decision will allow managers to more effectively reward high performers, hold poor performers accountable and eliminate bureaucratic hurdles to hiring and reform.
According to the agency, more than 1,900 VA employees collectively spent over 750,000 hours on union activity during fiscal year 2024 — time that was compensated with taxpayer dollars.
Additionally, the agency cited the use of over 187,000 square feet of VA office and clinical space by union representatives, free of charge, as a significant cost burden. Officials said those resources — which also include union access to government phones and computer systems — should be redirected to patient care and veteran services.
The move also halts payroll deductions for union dues for most employees, a change that took effect on April 25 in compliance with the executive order.
Labor organizations say the agency is turning its back on frontline workers, many of whom are veterans themselves, and warned that terminating collective bargaining agreements will degrade working conditions and compromise patient care.
“This is a direct attack on the rights of the people who care for our nation’s veterans,” Irma Westmoreland, chair of National Nurses United, told Axios. “Without a contract, nurses fear they won’t be empowered to speak up about conditions that put our patients at risk.”
Democratic U.S. Sen. Mark Warner of Virginia called the decision “shortsighted, counterproductive, and disrespectful to those who’ve worn the uniform,” warning that gutting collective bargaining rights would make it even harder for the agency to recruit and retain skilled professionals amid staffing shortages and rising demand for care.
Applewhite, a 20-year veteran of the U.S. Air Force, had similar concerns. The N.C. state senator said she had recently spoken with a constituent unable to get treatment through the VA for a brain bleed and partial blindness after three months of waiting. Now, veterans are frequently referred to the civilian market due to capacity issues at the VA, something Applewhite has witnessed herself as a disabled veteran.
“One of the things that helped me to stay 20 years, one of the carrots that are dangled at the end of this long journey is that you will have access to health care,” Applewhite said. “Now, it’s looking less and less attractive — like, so you mean to tell me this health care now takes me three months to get an eye appointment?”
The VA contends that unions have consistently resisted efforts to modernize the agency and hold employees accountable.
Officials noted that the American Federation of Government Employees, the National Federation of Federal Employees and National Nurses United opposed the bipartisan MISSION Act, which expanded veterans’ access to private-sector care. The National Federation has also supported repealing the 2017 VA Accountability and Whistleblower Protection Act, which was designed to speed disciplinary action against employees and protect whistleblowers.
According to the VA, the American Federation of Government Employees collaborated with the administration of former President Joe Biden to reinstate over 100 employees who were fired during Trump’s first term and helped secure nearly $134 million in back pay for more than 1,700 employees dismissed for alleged misconduct.
Labor advocates counter that these laws have been misused to retaliate against whistleblowers and sidestep due process protections, particularly during the Trump administration.
The action makes the VA the first federal agency to fully sever collective bargaining agreements under the Trump-era executive order, a move made possible by language exempting agencies involved in “national security” functions.
Axios reported that the decision could affect up to 400,000 workers — roughly a quarter of the federal workforce with union protections.
While the full impact of the VA’s action remains to be seen, labor leaders and policy analysts expect legal challenges and a new round of political fights over the balance between government efficiency and worker protections.
For now, the department insists its mission is clear.
“This is about putting veterans first,” said Collins. “And if that means upsetting union bosses who’ve been standing in the way of reform, so be it.”
NC Newsline reporter Brandon Kingdollar contributed to this report.
Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis for questions: [email protected].
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