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UPS Rolls Out Voluntary Buyouts for Drivers; Teamsters Label Plan Illegal

The Teamsters vow to mobilize every resource to oppose what they say is an illegal breach of their 2023 agreement.

The UPS logo is displayed on the side of a delivery truck in Mount Lebanon, Pa., Sept. 21, 2021.
A UPS driver makes a delivery in the Brooklyn borough of New York on March 26, 2024.
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 launched a voluntary buyout program this week for its full-time U.S. delivery drivers, marking the first time the company has offered such packages to union-represented drivers.
  • The buyout includes a generous financial incentive on top of any earned pension and retiree healthcare benefits.
  • The initiative is part of UPS’s largest network overhaul to date, which also entails cutting about 20,000 jobs and closing 73 facilities.
  • UPS has signaled plans to reduce its Amazon package volume by more than 50 percent by the second half of 2026 as demand shifts and costs rise.
  • The company says it notified the Teamsters in advance and remains committed to the agreements reached in its 2023 contract negotiations.