UPS Limits Driver Buyouts to 7,500 Following Teamster Settlement

Key Details UPS has agreed to cap its voluntary driver buyout program at 7,500 positions after reaching a settlement with the Teamsters union. The deal allows the company to offer $150,000 severance packages nationwide to long-haul feeder and package car delivery drivers, with selections based on seniority. Why It Matters This agreement ends a significant dispute over job elimination authority under the 2023 national contract. The Teamsters had challenged UPS through grievance procedures and federal court, arguing that direct buyout negotiations with workers violated employment security guarantees. Context UPS initially withdrew the buyout program from 13 central states in March after union opposition. The company is targeting 30,000 total job cuts this year as part of a network restructuring tied to Amazon service phase-outs and reduced shipping demand. Only about 3,000 drivers accepted less lucrative buyout offers last fall, but initial letters went to roughly 105,000 drivers in February, suggesting UPS anticipated significantly higher participation. What Happens Now The Driver Choice plan will reopen to eligible drivers nationwide. UPS maintains the seniority-based selection process was always intended to prioritize higher-paid, longer-tenured drivers for removal due to cost savings considerations.