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Teamsters Label UPS Driver Buyouts Illegal Under 2023 Contract

Teamsters claim the buyout breaches staffing obligations, excludes retiree healthcare benefits, preparing legal action

United Parcel Service (UPS) vehicles are seen at a facility in Brooklyn, New York City, U.S., May 9, 2022. REUTERS/Andrew Kelly/File Photo
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Overview

  • UPS has launched a voluntary buyout program affecting 20,000 full-time U.S. drivers as part of its largest network reconfiguration driven by automation and cost pressures.
  • Teamsters President Sean O’Brien argues the plan violates the 2023 agreement’s requirement to create 22,500 new jobs and has called the offer unlawful.
  • The union says the buyout excludes employer-paid health coverage in retirement for long-tenured drivers and falls short of promised air-conditioning upgrades in delivery vehicles.
  • Teamsters General Secretary-Treasurer Fred Zuckerman urged members to reject the offer and vowed to use every available resource to block its rollout.
  • UPS also disclosed plans to halve its handling of Amazon packages by the second half of next year as part of broader cost-management measures.