In a move that could be considered a violation of a United States federal court order, the Treasury Department on February 27 terminated its collective bargaining agreement (CBA) with unionized employees of the Internal Revenue Service, according to an AP report.
Agreements with the National Treasury Employees Union (NTEU) at the IRS and the Fiscal Service Bureau have been canceled and come as US President Donald Trump seeks greater control over the federal workforce, the report added, citing two sources.
What is the IRS and the Bureau of Fiscal Services?
The IRS is the government’s revenue service, which is responsible for administering the Internal Revenue Code, collecting federal taxes, overseeing benefit programs such as the Affordable Care Act, providing tax assistance to taxpayers, and tracking and resolving cases of erroneous or fraudulent tax returns.
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Also part of the Treasury Department, the Bureau of the Fiscal Service, is known as the “checking account” of the US government. It manages government accounting, bookkeeping, cash disbursements for activities, central payment systems, loans and public debt, and acts as a disbursement bar for each federal agency.
Termination of the Treaty with the Union: What happened?
Officials at both agencies were told that the termination of the CBA was initiated by an executive order signed by Trump in March of last year. Scott Kupor, director of the Office of Personnel Management, sent a memo earlier this month asking managers to comply with the order and inform employees that “any applicable CBAs, whether with the NTEU or other unions,” would be terminated.
The AP reported that a letter was sent to IRS staff on Friday, where HR chief Alex Kweskin said the development “reinforces our commitment to operate as one IRS, a collaborative team focused on serving the American taxpayer.”
How did the union react?
Treasury Department Employees Union President Doreen Greenwald said in a statement that the IRS “cannot unilaterally terminate” its contract with the union. She pointed to a federal sector labor statute that mandates an agency have a CBA “with the sole employee representative of its bargaining unit,” the AP report added.
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The NTEU represents approximately 1,50,000 employees covering 37 agencies and departments, according to the report.
What was stated in the court order?
Notably, the NTEU took the government to court over Trump’s executive order last year, and the Washington, DC-based Senate issued a preliminary injunction. That order was later stayed on appeal.
Recently, on February 26, a three-judge US Court of Appeals for the 9th Circuit cleared the way for the order to be implemented in a separate hearing.
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Notably, with one decision settled but another still pending, the department risks violating the court order “at least in spirit,” according to a report published in the US-based publication Government Executive.
What changes now for employees of the Treasury Department?
According to a government executive report, Friday’s notice to employees included frequently asked questions that said the following rules now apply:
- Employees are no longer allowed to elect a union official to represent them in disciplinary or EEO cases.
- Officials who are not union members may apply for representation.
- The email also warned employees that no statements should be made to the press unless they were “expressly authorized” to do so.
Could taxpayers be affected?
Not directly. After the Trump administration fired around 7,000 probationary employees (hired for less than a year) last February, experts warned it could have long-term consequences for federal finances.
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They also warned that taxpayers seeking help could experience longer wait times and delayed customer service. Katie Brewer told CBS MoneyWatch that she advises people to “do their taxes as soon as possible” to avoid long lines.
Like many other tax professionals, Terrance Hutchins of the Logos Financial Group told the publication that he recommends electronic filing for timely refunds.
