A Pay Cut in Exchange for Our Rights? No Thanks.

Press Release May 23, 2025

WASHINGTON – Forcing new federal employees to give up part of their paycheck in exchange for the workplace rights they are entitled to by law, as outlined in House-passed legislation, is an especially nefarious tactic to dissuade people from careers in public service and erode the nation’s nonpartisan, merit-based federal workforce.

 

The budget reconciliation bill now pending in the Senate includes a provision that new hires would be considered at-will employees – meaning they could be fired without cause – unless they agree to contribute more of their salary toward their retirement plan.

 

“Federal pay and benefits are not favors to be traded away,” said NTEU National President Doreen Greenwald. “They are the basic compact that the federal government makes with the people who swear an oath of public service and join the federal workforce, which is why this unprecedented proposal is so reprehensible.”

 

This is the second current effort to push frontline federal staff into at-will employment. The White House is also plotting to involuntarily reclassify tens of thousands of existing federal employees in order to remove their civil service protections and allow them to be fired for political reasons, or no reason at all.

 

NTEU members across the country are raising their voices in opposition to both.

 

“These proposals have nothing to do with efficiency and everything to do with turning the clock back to a time when presidents lorded over government jobs with patronage and favoritism. It is also why Congress, 142 years ago, dismantled the spoils system and helped create the competitive, merit-based system we have today, where agencies hire experts to provide quality, unbiased services to the American people without regard to political affiliation,” Greenwald said.

 

The Congressional Budget Office estimates that about 25 percent of new hires would agree to pay 5 percent more of their paycheck toward retirement in order to avoid at-will status, saving $4.5 billion over 10 years in reduced retirement contributions.

 

“We cannot put a price on basic workplace rights. The real cost of this plan is the loss of professional, nonpartisan experts who are dedicated to the rule of law and serving the American people, and the degradation of those services when they are provided by unqualified political loyalists,” Greenwald said.   

 

The same bill also includes two other harmful changes for federal employees: eliminating the Federal Employee Retirement System Supplement for most federal employees who retire before they are eligible for Social Security, and requiring employees pay a fee for filing an appeal with the Merit Systems Protection Board.

 

NTEU members will continue to fight these proposals as the budget reconciliation package moves to the Senate for further consideration.

 

NTEU represents employees in 37 federal agencies and offices.  

Contact: ,

Share: