The Treasury Department has officially ended its collective bargaining agreement with unionized employees at the Internal Revenue Service (IRS), an announcement made by the agency on Friday. This action marks a significant step in President Donald Trump’s efforts to assert greater control over federal personnel. Additionally, the union contract for the Bureau of the Fiscal Service was also terminated this week, according to two individuals familiar with the situation who preferred to remain anonymous due to restrictions on speaking with the media.
Employees at both the IRS and the Bureau of the Fiscal Service, which is responsible for processing government payments, are represented by the National Treasury Employees Union (NTEU). They were notified by agency leaders that their collective bargaining agreements had been terminated, citing an executive order signed by President Trump last March as the basis for this decision.
In a communication directed at IRS employees on Friday, IRS Chief Human Capital Officer Alex Kweskin articulated that this move “deepens our commitment to operate as one IRS, a collaborative team focused on serving American taxpayers.”
The timing of these contract terminations coincides with a recent memo issued by Scott Kupor, the director of the Office of Personnel Management (OPM). In this memo, he urged agency heads to adhere to Trump’s March order and to inform labor unions that any relevant collective bargaining agreements (CBAs) are being terminated, regardless of whether they are represented by the NTEU or any other union.
Last year, the union filed a lawsuit against the federal government in response to Trump’s executive order. While a D.C. court had initially issued a preliminary injunction blocking the government’s actions, this was put on hold pending an appeal. Concurrently, a three-judge panel from the U.S. Court of Appeals for the 9th Circuit recently ruled in another case, allowing Trump’s executive order to proceed.
Doreen Greenwald, president of the National Treasury Employees Union, asserted in a statement on Friday that the IRS “cannot unilaterally end” its contract with the union. She emphasized that federal labor law mandates the IRS to uphold a collective bargaining agreement “with the exclusive representative of its bargaining unit employees.”
The National Treasury Employees Union represents approximately 150,000 workers across 37 different government departments and agencies.
