The Pentagon’s sudden decision to cancel collective bargaining agreements has landed squarely in Cleveland, where union leaders say more than 600 civilian employees at the Defense Finance and Accounting Service have seen their locally negotiated contracts wiped out. Without those agreements, many workers who handle military pay and benefits say they are now operating like at-will employees, a shift that has local stewards and lawmakers warning of major upheaval on the shop floor.
What the memo ordered
An April 9 memo from Defense Secretary Pete Hegseth instructed senior leaders to terminate collective bargaining agreements that are not covered by court injunctions within 24 hours, saying the move is necessary to align operations with national security rules, according to Government Executive. The memo carries out President Trump’s March 27, 2025 executive order on exclusions from federal labor management programs, which is published in the Federal Register.
Impact in Cleveland
The cancellations hit AFGE Local 3283, which represents the DFAS Cleveland bargaining unit. Local leaders told reporters the chapter has shrunk to just over 600 members after payroll deduction for dues was halted and a deferred resignation program was rolled out, as reported by Cleveland.com. On its website, AFGE Local 3283 identifies the chapter as the representative for DFAS Cleveland employees.
Union leaders sound the alarm
“Workers would effectively become at-will employees without a contract,” AFGE Local 3283 President Ebonie Douglas told Cleveland.com. Douglas said some supervisors have already begun acting outside the now-canceled contract terms, including making changes to dress codes and to workplace accommodations.
She also told the outlet that some employees who opted into the deferred resignation program have returned to DFAS after being unable to find better jobs elsewhere, underscoring how few appealing alternatives many of these specialized workers feel they have.
Political backlash and union response
Congresswoman Shontel Brown blasted the decision and urged congressional action in a press release from her office, noting that she is a cosponsor of the Protect America’s Workforce Act, which the House passed last year. In her statement, Shontel Brown also criticized the move for targeting Cleveland workers who process military pay.
At the national level, union leaders are preparing for a long fight. American Federation of Government Employees President Everett Kelley labeled the Pentagon’s step “cowardly” and said AFGE will pursue legal options, according to reporting from Defense One.
Legal fight likely
The Pentagon’s move is rooted in Executive Order 14251, and unions have already challenged related exclusions in court. A handful of unions have secured preliminary injunctions that temporarily shield some bargaining units, while others remain exposed, Government Executive reports.
AFGE and allied unions have signaled they will keep pressing their legal cases while also seeking help from Congress. The House approved H.R. 2550 last December, but the measure has not cleared the Senate, according to Congress.gov and reporting.
Why this matters locally
DFAS manages pay and a wide array of financial services for the Department of Defense, and the agency says it processes millions of pay transactions and large annual disbursements each year, work that Cleveland employees handle daily, according to the agency’s summary. Union leaders and lawmakers warn that any loss of contract protections or wave of departures at DFAS Cleveland could ripple through payroll and benefits processing far beyond Northeast Ohio, turning the Cleveland office into a focal point in the broader national fight over federal labor rights.
