President Trump issued an executive order rescinding Executive Order (EO) 14055, Nondisplacement of Qualified Workers Under Service Contracts, signed by President Biden in November 2021. EO 14055 promoted the retention of skilled workers in the federal workforce by requiring contractors and subcontractors covered by federal service contracts to offer service employees covered under predecessor contracts the right of first refusal of employment in successor contracts. EO 14055 also required new contractors to recognize existing unions and bargain with them to change any terms and conditions of employment.
By rescinding EO 14066, federal contractors are not required to offer service employees the right of refusal or recognize existing unions in successor contracts. Further, federal contractors can now use the threat of losing a federal contract to discourage workers’ organizing efforts.
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