Thousands of Virginia jobs might experience a demotion due to an expansion of the ongoing job classification review
The Department of Veterans Affairs (VA) is currently undergoing a department-wide review and restructuring, aimed at improving its mission effectiveness and operational efficiency. This initiative, launched in mid-2025, is part of broader efforts to reorganize the agency and increase operational efficiency.
The review has expanded to cover nearly 160 positions across approximately 60 occupational series, affecting around 24,444 employees as of October 2024. It's important to note that this restructuring follows significant staffing reductions, with the VA having already reduced its workforce by nearly 30,000 employees through normal attrition, early retirements, deferred resignations, and a federal hiring freeze. This has eliminated the need for a large-scale reduction-in-force (RIF) initially planned at up to 80,000 cuts.
In this reorganization process, the VA is prioritizing reviews of occupations eligible for special salary rates, including health care workers, police, security, logistics, contracting, and finance personnel. The review is a "consistency review" required by the Office of Personnel Management (OPM), with the goal of ensuring positions are classified in compliance with OPM classification standards and graded consistently VHA-wide.
Employees who are downgraded as a result of this review are entitled to mandatory grade retention for two years, followed by mandatory pay retention, under OPM rules. However, it's worth mentioning that the focus appears to be primarily on workforce size, mission alignment, and organizational structure rather than compensation adjustments.
The VA is not planning on a "department-wide" reduction in force to cut more than 80,000 positions. The review is an "incumbent only" review, meaning once employees leave, their position descriptions can no longer be used to hire someone else.
The timeline for completion is still unfolding. Staff reductions are expected to conclude by the end of fiscal year 2025 (September 30, 2025). Organizational restructuring details, including new staffing plans, are anticipated soon after. The VA leadership emphasizes a "thoughtful journey," implying a gradual, phased approach to changes.
Thomas Dargon, supervisory attorney for AFGE's National VA Council, stated that the number of affected positions and employees in VA's internal documents exceeds the estimates provided during the previous administration. The VA is committed to taking appropriate steps to correct all impacted positions in accordance with appropriate OPM guides and standards.
In a related development, the VA has ended the moratorium on downgrading employee positions that was implemented in 2012. However, it's important to note that the VA is not recognizing the American Federation of Government Employees' ability to collectively bargain for VA employees at this time.
The VA also plans to eliminate a special salary rate and critical skills incentive that increased pay for human resources officials by about 15%. This decision is part of the VA's ongoing efforts to streamline its operations and align its workforce with its mission.
In summary, the VA is undergoing a comprehensive review and restructuring aimed at improving its mission effectiveness and operational efficiency. The review has expanded to cover nearly 160 positions across approximately 60 occupational series, affecting around 24,444 employees. Staff reductions are expected to conclude by the end of fiscal year 2025, with organizational restructuring details anticipated soon after. The focus appears to be primarily on workforce size, mission alignment, and organizational structure rather than compensation adjustments.
- The reorganization of the VA workforce includes a review of finance personnel as part of efforts to streamline operations and align the workforce with the agency's mission.
- The reimagined federal workforce, following the restructuring, will maintain a consistent classification of positions and their grades across the VA, thanks to the "consistency review" required by the Office of Personnel Management.
