Teamsters Challenge UPS Over Illegal Employee Buyout Plan

United Parcel Service (UPS) is set to introduce a proposed buyout strategy for its full-time Teamsters employees, sparking potential controversy. The plan, which aims to offer financial incentives for early retirement or resignation, is anticipated to conflict with the union's national contract covering 340,000 delivery workers.

Although UPS has yet to officially release details, the Driver Voluntary Severance Plan (DVSP) is believed to provide cash offers that fall short of what current Teamsters could earn under the existing agreement. This plan could potentially deprive retiring drivers of quality health insurance, contradicting the company's legal obligations to create 22,500 new jobs as outlined in the Teamsters contract.

"UPS is trying to weasel its way out of creating good union jobs here in America by dangling insulting buyouts in front of Teamsters drivers. It is an illegal violation of our national contract," stated Sean M. O’Brien, General President of the Teamsters. He emphasized the importance of UPS honoring its commitment to establish new positions, as per the agreement.

Under the contract ratified in August 2023, UPS committed to converting 22,500 part-time positions into full-time roles and creating an additional 7,500 full-time jobs over the next three years. Furthermore, the agreement mandates the introduction of 28,000 air-conditioned delivery vehicles by 2028 to improve working conditions.

However, the union has expressed concerns about UPS's adherence to its commitments, including the timely delivery of air-conditioned trucks. The Teamsters recently requested data on open positions and vehicle upgrades, but UPS has delayed its response, requesting more time.

The potential rollout of the DVSP coincides with mounting worries about UPS's dedication to providing necessary heat relief measures for its workforce. The Teamsters are also investigating whether UPS is redirecting some delivery tasks to nonunion affiliates, which could undermine union agreements.

"Our members cannot be bought off and we will not allow them to be sold out. The Teamsters are prepared to fight UPS on every front with every available resource to shut down this illegal buyout program," asserted O’Brien, expressing the union's readiness to oppose the DVSP.

In a similar move in 2020, UPS offered buyouts at the corporate level to reduce payroll expenses for middle management. Teamsters General Secretary-Treasurer Fred Zuckerman urged drivers to stand firm, stating, "All drivers should reject this illegal and insulting buyout when UPS makes it public. UPS has forced buyouts on its own management in the past. They can’t force anything on us."

The International Brotherhood of Teamsters, established in 1903, represents 1.3 million members across the U.S., Canada, and Puerto Rico. For more details, visit Teamster.org and follow their updates on @Teamsters and Facebook.com/teamsters.