You have clearly never worked in any sizeable workforce, and I can assure you your basic presumption that large private sector workforces does not have broken processes is childishly naive. The "problem" is you, making assumptions of waste where there is none to speak off, unless you can provide some actual data to back that up. The average federal employee earns about $60k/y, they are not there for the money. Firing all federal employees will same about 7h of borrowing.
I'm sorry but the narrative you have invested in so deeply is not founded in reality, not that I expect anyone explaining facts to you will make any appreciable difference.
Enjoy the pain you elected to bring upon yourself, you deserve the government you got.
They've just been put into a strong negotiating position, because now both parties acknowledge that these are key employees.