New I4AW Report Reveals Taxpayer Price Tag Likely in the Hundreds of Millions Spent on Federal Bargaining

HAMILTON (January 13, 2025) – A new report released today by Institute for the American Worker (I4AW) reveals that likely hundreds of millions of taxpayer dollars are spent each year on costs associated with the process of collective bargaining between the federal government and labor unions.

I4AW’s report, titled “Transparency Needed in the Process of Federal Collective Bargaining,” reveals through Freedom of Information Act requests and other research the massive cost of collective bargaining at the federal level.

The report breaks down the costs into four categories: the bargaining process itself, government union perks, government union-focused bureaucracy, and “official time,” a practice in which unionized federal employees perform union-related activities while being paid by taxpayers. This is the first attempt to collect such data since 2019, which was the last time the Office of Personnel and Management (OPM) reported on official time and costs associated with collective bargaining.

“The true cost of collective bargaining, likely in the hundreds of millions of dollars, remains largely unquantified because federal agencies have not yet adequately tracked or reported this data,” said the report’s author, Molly Conway, who is the founder and principal of Conway Capitol Consulting. She was previously appointed to serve in high-ranking positions at the U.S. Department of Labor, including as Chief of Staff to the Secretary of Labor, Assistant Secretary for the Employment and Training Administration (acting), and Assistant Secretary for Congressional Affairs (acting).

Congress has demonstrated an increasing interest in this topic. In the 118^th Congress, legislation was introduced and several oversight letters were sent specifically addressing official time. The Trump Administration could also issue another executive order and require more transparency in this process while working with Congress to establish a statutory requirement for agencies to report this information annually.

“Transparency about the costs of the collective bargaining process is crucial not only for American taxpayers who fund these initiatives but also for federal employees who should be able to evaluate whether the investment yields tangible benefits in their workplaces,” said F. Vincent Vernuccio, president of Institute for the American Worker. “Bringing transparency to the process of federal collective bargaining will help provide accountability to accomplish the goal of ensuring government efficiency.”

Click here to read the full report.

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Institute for the American Worker is a non-profit 501c3 organization that educates policymakers on complex labor legislation and offers policy solutions that benefit the American worker.