VA Ends Union Contract for 320,000 Employees

The Department of Veterans Affairs notified the AFGE that their collective bargaining agreement is no longer in effect.

Updated on Oct. 15, 2026 in Unions

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The Department of Veterans Affairs has terminated its national collective bargaining agreement with the American Federation of Government Employees, impacting 320,000 agency workers. AI Illustration. Upload story photo >

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The Department of Veterans Affairs has officially ended its national collective bargaining agreement with the American Federation of Government Employees. This policy change affects more than 320,000 workers across the agency.

Why it matters

The agency cited the expiration of the agreement and an October appeals court ruling as the primary justifications for terminating the contract. This move effectively stops ongoing negotiations and union-related activities for most staff.

The agency reports the collective bargaining agreement covers over 320,000 employees, though police officers, firefighters, and security guards remain exempt from the termination. The move follows an October 2 federal appeals court stay.

The players

Department of Veterans Affairs

This federal agency is responsible for providing vital services and healthcare to military veterans.

American Federation of Government Employees

This is the largest federal employee union in the United States, representing workers across various government departments.

The details

The VA has ordered employees to cease all grievance proceedings and arbitration while returning government-issued equipment used for union business. While the AFGE plans to continue legal challenges to the decision, the agency mandate requires equipment returns by October 22.

Timeline

  1. August 8: Original expiration date of the agreement.

  2. October 2: Federal appeals court granted the VA a stay of a previous order.

  3. October 8: The VA issued revised guidance regarding collective bargaining.

  4. October 10: The agency formally notified the AFGE that the contract is expired.

  5. October 22: Deadline for employees to return equipment used for union activities.

Political Context

Opponents of the agency's move, including union leadership, argue that terminating the contract undermines established labor protections. They contend that the action disrupts the balance of power between federal management and the organized labor force.

The cancellation of the contract means that employees no longer have access to established grievance and arbitration procedures for workplace disputes. Workers must now comply with the October 22 equipment return deadline or face potential administrative action.

The takeaway

This dispute highlights the ongoing tension between executive agency directives and established federal labor agreements. Employees should monitor official internal communications regarding the new administrative protocols and their current collective bargaining status.

Further reading

Find more background on federal labor relations at Unions.

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Should federal agencies maintain collective bargaining agreements with employee labor unions?