Treasury Department terminates union contracts for IRS and Bureau of the Fiscal Service workers

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WASHINGTON (AP) — The Treasury Department has terminated its collective bargaining agreement with unionized workers employed at the Internal Revenue Service, the agency said Friday, in an escalation of President Donald Trump ’s push to exert more control over the federal workforce.

The union contract for the Bureau of the Fiscal Service was also terminated this week, according to two people familiar with the decision. The people spoke on the condition of anonymity because they were not authorized to speak with the media.

Workers at the IRS and the fiscal service bureau, which processes payments for the government, are represented by the National Treasury Employees Union. They were informed by agency leadership that Treasury terminated their collective bargaining agreements, using an executive order President Donald Trump signed last March as the authority for the terminations.

In a letter to IRS workers Friday, viewed by The Associated Press, IRS Chief Human Capital Officer Alex Kweskin told employees the move “deepens our commitment of operating as one IRS, a collaborative team focused on serving American taxpayers.”

The contract terminations come after Scott Kupor, director of the Office of Personnel Management, issued a memo this month to agency heads calling on them to comply with Trump's March order and notify labor unions “that they are terminating any applicable CBAs (collective bargaining agreements), whether represented by the National Treasury Employees Union (NTEU) or another labor union.”

The union had sued the federal government last year over Trump's executive order.

And while a D.C. court issued a preliminary injunction against the government, that was stayed pending an appeal. Meanwhile, a three-judge panel of the U.S. Court of Appeals for the 9th Circuit issued a decision in a separate case Thursday that cleared the way for the implementation of Trump's executive order.

Doreen Greenwald, president of the Treasury employees union, said in a statement Friday that the IRS “cannot unilaterally end” its contract with the labor union. She said the federal sector labor statute requires the IRS to have a collective bargaining agreement "with the exclusive representative of its bargaining unit employees," she said.

The National Treasury Employees Union represents roughly 150,000 employees in 37 departments and agencies.

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Associated Press writer Jonathan J. Cooper contributed to this report.