BOP Re-terminates Union Contract Days After Court Ordered Its Restoration

Key points

• BOP Director William K. Marshall III issued a new termination notice on October 7, 2026, re-terminating the AFGE contract days after a federal judge ordered its restoration.
• The contract covers approximately 30,000 BOP employees and was originally terminated in September 2025, with AFGE suing in November 2025 alleging retaliation and violations of the Administrative Procedure Act.
• Judge Vernon Oliver granted a preliminary injunction on September 29, 2026, ordering BOP to reinstate the contract immediately until its expiration in 2029.
• AFGE filed for civil contempt on October 6, 2026, alleging BOP ignored the court order, denied union representation in disciplinary meetings, and refused to provide official time or office space.
• BOP stated it was complying with the court order but re-terminated the contract before reinstatement steps were completed, citing a new basis tied to presidential executive orders rather than the original rationale.

Background

This dispute follows a broader federal effort to eliminate collective bargaining agreements, including a March 2025 executive order targeting national security and intelligence agencies. The BOP had allowed its union to operate for approximately six months after the order before terminating the contract in September 2025. Earlier this year, other federal unions, such as Boeing engineers and Blizzard staff, secured new contracts or safeguards, highlighting ongoing tensions between federal agencies and labor unions.

How outlets are covering it

Federal News Network and CBS News report that BOP re-terminated the contract on October 7, 2026, citing presidential orders, despite a September 29 court order requiring reinstatement. AFGE, in its own statement, calls the move 'absurd and shameful,' arguing it flouts the rule of law and compromises officer safety. BOP, as reported by Federal News Network, claims it was in the process of reinstating the contract but re-terminated it before completion, arguing the court order did not prevent a new decision. CBS News notes that the Justice Department filed a notice of compliance on October 2 but did not seek a stay of the ruling, while AFGE alleges BOP ignored the order and refused to provide union representation. The outlets differ in emphasis: AFGE focuses on the contempt and safety implications, while BOP and CBS News highlight the legal and procedural aspects of the re-termination.

Why it matters

The re-termination of the BOP contract sets a precedent for federal agencies challenging court orders to restore union agreements, potentially undermining collective bargaining rights for federal employees. It also highlights the tension between presidential executive orders and judicial rulings on labor issues, with implications for other federal agencies and unions.

What to watch

AFGE is expected to pursue the civil contempt motion, potentially leading to further legal action against BOP. The outcome of the contempt case and any subsequent court rulings will determine whether the contract is restored or if BOP's re-termination stands. The Justice Department may also face pressure to clarify its stance on the court order and the re-termination.