Executive Directors Column

                  Navigating Change:
            What the Rescission of the
      IRS Collective Bargaining Agreement
                 Means for Managers

The agency has formally rescinded its 2022 National Collective Bargaining Agreement and 2025 addendum with the National Treasury Employees Union (NTEU), citing the President’s March 2025 Executive Order expanding national security exemptions to collective bargaining. A follow-up Executive Order issued in August 2025 broadened those exemptions further.

This action places the IRS among more than 20 federal agencies whose collective bargaining rights have been limited or eliminated under this administration’s national security determinations.

Where Things Stand Legally
NTEU has formally challenged the IRS decision, asserting that the agreement remains legally in effect and that only the Federal Labor Relations Authority can undo its certification.

The U.S. Court of Appeals for the Ninth Circuit recently vacated a lower court’s preliminary injunction that had temporarily blocked enforcement of the Executive Orders. Importantly, the court did not rule on the ultimate legality of the Executive Orders themselves. Litigation is ongoing.

The Federal Labor Relations Authority has not yet rescinded union certification. Additional filings and legal actions are expected in the coming months.
In short: this is an evolving legal landscape.

What This Means for IRS Managers
From an operational standpoint, the IRS has announced that:

• The national agreement and addendum are terminated
• Ongoing negotiations are cancelled
• Changes to conditions of employment may be implemented without bargaining
• Personnel files are being updated to reflect bargaining-unit status changes

However, several foundational protections remain unchanged:

• Civil service laws remain in effect
• Merit system principles remain in effect
• Equal Employment Opportunity protections remain in effect
• Federal employees remain prohibited from striking

For managers, this moment requires balance.On one hand, processes surrounding bargaining and consultation are shifting. On the other, your obligations as leaders — to uphold fairness, professionalism, and mission execution — remain exactly the same.The Broader Policy ContextThe Executive Orders signed by Donald Trump rely on long-standing statutory authority allowing the President to exempt agencies from collective bargaining on national security grounds. What is new is the scope of agencies included.Congressional oversight is increasing, and legislative responses are possible, though none have been enacted to date.As with many federal workforce issues in recent years, the final outcome may ultimately depend on the courts or future legislative action.Leadership in Uncertain TimesPeriods of change test leadership.IRS managers are the operational backbone of the agency. Your role is not only to execute policy but to stabilize teams, reinforce professionalism, and maintain focus on serving taxpayers.Regardless of legal developments, our guiding principles should remain:

• Respect for employees
• Consistent application of merit principles
• Transparent communication
• Mission-first leadership

The workforce is watching closely. How managers lead through this transition will shape morale, trust, and performance.PMA’s CommitmentPMA will continue to monitor legislative developments, court rulings, and OPM guidance closely. We remain committed to supporting IRS managers with timely information and advocacy focused on:

• Protecting managerial authority
• Ensuring fair and consistent personnel policies
• Preserving professionalism in the federal civil service

We will keep you informed as developments unfold.
Leadership matters most during moments of transition — and IRS managers have consistently risen to the challenge.

Respectfully,
Kelly Reyes
Executive Director
Professional Managers Association

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