Court upholds job-saving injunction for Trump's layoff plans, as litigation moves towards the Supreme Court.

The U.S. Court of Appeals for the Ninth Circuit has issued a ruling that temporarily halts mass layoffs at most major federal agencies, a decision that could potentially impact federal departments under its jurisdiction in western U.S. states.

In a 2-1 decision, Judge William Fletcher led the majority in favouring unions, municipalities, and advocacy groups that sued over the workforce reduction plans. The court found that the Trump administration has not made any compelling argument for the necessity of the RIFs (Reductions in Force).

The court's ruling prevents most reductions in force and agency reorganizations from taking place indefinitely, and the order applies to a wide range of federal agencies and departments, including the Departments of Agriculture, Commerce, Energy, Health and Human Services, Housing and Urban Development, Interior, Labor, State, Treasury, Transportation, and Veterans Affairs. Other affected agencies are the Office of Management and Budget, Office of Personnel Management, Department of Government Efficiency, AmeriCorps, Peace Corps, the Environmental Protection Agency, the General Services Administration, the National Labor Relations Board, the National Science Foundation, the Small Business Administration, and the Social Security Administration.

The Trump administration initially brought the case on an emergency basis, seeking a stay of a district court ruling. However, the administration later withdrew its appeal after a preliminary injunction replaced the temporary restraining order. The court's decision now expects the Trump administration to once again pursue relief before the Supreme Court.

Judge Consuelo Callahan, who dissented from the majority, believes the president has the authority to govern the executive branch, including empowering agencies to terminate and lay off employees. However, her argument was not persuasive to the court. The court found that the Merit Systems Protection Board and Federal Labor Relations Authority do not have the authority to address the constitutional and statutory claims raised by the plaintiffs.

The current order indefinitely bars most major federal agencies from issuing mass layoffs, a decision that could have far-reaching implications for federal employees and the agencies themselves. As the case moves forward, it will be interesting to see how the Supreme Court rules on this important matter.