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The Trump administration has reportedly halted the collection of union dues from federal employees through voluntary payroll deductions at agencies affected by a recent executive order aimed at diminishing collective bargaining rights, creating significant turmoil for labor organizations.
In a move framed under the pretext of “national security,” President Trump signed an executive order last month that invokes a seldom-used section of the 1978 Civil Service Reform Act. This directive exempts certain agencies from federal labor laws and predominantly affects two-thirds of the federal workforce, including non-national security agencies like the Environmental Protection Agency and the Federal Communications Commission.
Legal actions have been initiated by the administration in federal courts, which showcase judges primarily appointed by Republican officials. These lawsuits seek approval to annul existing union contracts within the specified agencies. Despite indications that the administration would await a judicial ruling before dismantling collective bargaining agreements (CBAs), unions have reported that the primary payroll processors have already begun discontinuing the direct collection of dues from employee paychecks.
Matt Biggs, president of the International Federation of Professional and Technical Engineers (IFPTE), noted that this development became apparent when employees received their paychecks without corresponding union payments. The Defense Finance and Accounting Service, which handles payroll for the Departments of Defense, Health and Human Services, and Veterans Affairs, also discontinued deductions for additional union-provided vision and dental insurance plans. Roughly a third of IFPTE’s members are federal employees, primarily within the Defense Department.
“The DFAS seemingly terminated union dues without prior notification to any local unions on our end,” Biggs stated. “To my knowledge, even certain agencies within the Department of Defense were unaware of this sudden decision. It was executed unilaterally and rapidly, without alerting anyone.”
Moreover, an official from another federal union shared with Government Executive that labor organizations at agencies reliant on the Interior Department’s Interior Business Center and the Agriculture Department’s National Finance Center experienced similar issues, with no prior communication about the action taken.
In one noted instance, the National Finance Center deducted union dues from employee paychecks but failed to transfer those funds to the union, resulting in a need for refunds to the employees affected.
As of Wednesday afternoon, the full extent of the administration’s suspension of union dues collection remains uncertain, especially regarding the offices of the chief information officer, which the executive order explicitly exempted from collective bargaining. Clarity also remains elusive about how the payroll processors are addressing portions of the affected workforces that are excluded from the order, such as law enforcement and firefighting personnel.
The American Federation of Government Employees (AFGE), which represents the largest segment of federal workers, is notably the only major labor group that has set up an alternative method to collect union dues outside of federal payroll systems. This was implemented when the Education Department and the Environmental Protection Agency attempted to discontinue such collections during Trump’s first term.
Biggs mentioned that the IFPTE is in the midst of developing an electronic dues collection system, or eDues, but it will take at least three weeks before it can be operational. According to the National Treasury Employees Union, which is challenging the order through legal means, the cessation of automatic dues collection would dramatically reduce union revenue by over fifty percent.
“The AFGE is ahead of the curve on this, which is commendable,” Biggs remarked. “However, establishing a new system incurs substantial expenses—something we must manage as a smaller organization with fewer resources. We’re currently allocating our funds to facilitate this development, which seems to be part of the administration’s strategy: to compel unions to expend their resources on this adjustment.”
Once their alternative dues system is implemented, IFPTE plans to launch a comprehensive internal campaign aimed at encouraging workers to transition to the new system. Despite the immediate challenges posed, Biggs is optimistic about the long-term viability of federal employee unions.
“Historically, similar situations have, in some cases, led to increased union membership,” Biggs asserted. “When public sector unions have faced upheaval, they often see more sign-ups through alternative dues collection methods compared to traditional payroll deductions. I believe that, in time, this will galvanize more interest and support among workers. In essence, Trump has inadvertently become a strong motivator for union participation, with more individuals eager to join.”
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