UPS Offers Buyout Option to Full-time Drivers in Bid to Trim Workforce

UPS has announced a voluntary buyout program for its full-time drivers, marking what it calls “the largest network reconfiguration” in the company’s history.

This is the first time the company is offering such a package to full-time drivers, allowing them to leave the company in exchange for what it describes as a “generous financial package.” While the specific terms of the package were not disclosed, UPS stated that it would be offered in addition to any existing retirement benefits, including pension and healthcare.

“Each driver will have the opportunity to determine whether this voluntary program aligns with their personal and family goals,” the company said in a statement on Tuesday. UPS also noted that the union representing the drivers had been informed and that the company remains committed to the terms of its 2023 labor agreement.

However, the International Brotherhood of Teamsters, which represents UPS drivers, strongly opposed the buyout plan. The union accused the company of violating their contract, which includes a commitment to protect 340,000 union jobs and create at least 22,500 new full-time positions over five years.

“UPS is trying to dodge its responsibility to create good union jobs by offering what we consider insulting buyouts,” said Teamsters General President Sean O’Brien. “This is an illegal violation of our national contract.”

O’Brien also criticized UPS for allegedly failing to meet other contract obligations, including the provision of 28,000 air-conditioned delivery vehicles by 2028.

“Our members are not for sale, and we will not allow this to happen,” O’Brien warned. “The Teamsters are ready to fight UPS on every front and with every available resource to stop this illegal program.”

This announcement follows UPS’s statement in April that it plans to cut about 20,000 jobs in 2025.