UPS Agrees to New Teamsters Settlement on Driver Buyouts and Severance

The Facts -

UPS and Teamsters Reach Agreement Over Disputed Driver Severance Packages

In a significant development for United Parcel Service (UPS) employees, a new agreement has been reached with the Teamsters National Negotiating Committee. This agreement follows a period of tension over UPS's unilateral decision to offer driver buyouts, which was met with resistance from the union.

The Teamsters General President, Sean M. O’Brien, played a pivotal role in bringing UPS back to the negotiating table. This move came after the union filed national grievances against UPS over its Driver Choice Program (DCP), launched without union consent in February. The pressure from these grievances led to the program being withdrawn in 13 states by March, eventually prompting UPS to agree to negotiate.

Under the terms of this new settlement, UPS is restricted in the number of severance packages it can offer to its drivers. Those drivers who opt for early retirement will receive a severance payment of $150,000. The offers will prioritize long-haul feeder drivers and Regular Package Car Drivers based on seniority across the country. Additionally, UPS committed not to propose any additional severance programs for the duration of the current Teamsters National Master Agreement, which will remain effective until July 31, 2028.

“UPS never had the contractual right to unilaterally offer driver buyouts, but with enough pressure and member solidarity UPS finally did the right thing by putting its commitments to hardworking Teamsters down in writing,” O’Brien remarked. He emphasized the importance of union seniority and the necessity of respecting the rights of all union members at the bargaining table.

The newly forged agreement limits the total number of severance payments to 7,500 drivers nationwide. O’Brien highlighted the significant contribution of rank-and-file Teamsters, saying, “Rank-and-file Teamsters have given their blood, sweat, tears and, most importantly, their labor to ensure UPS’s success for a century. This agreement is a powerful reminder to UPS executives that the Teamsters never want to harm the company’s ability to be competitive, but we will also never tolerate any violations of our contract or our members’ rights.”

The International Brotherhood of Teamsters, established in 1903, represents over 1.3 million workers across the U.S., Canada, and Puerto Rico. For further details, visit Teamster.org. Stay updated by following the Teamsters on @Teamsters and on Facebook.

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