Home / Business and Economy / UPS Drivers' $150K Buyout Proceeds After Union Loss
UPS Drivers' $150K Buyout Proceeds After Union Loss
24 Feb
Summary
- Judge rejected Teamsters' bid to block UPS driver buyout program.
- UPS plans to offer $150,000 buyout packages to drivers.
- Union accused UPS of violating its 2023 labor contract.
A federal judge has cleared the way for United Parcel Service (UPS) to offer $150,000 buyout packages to its drivers, rejecting a legal challenge from the International Brotherhood of Teamsters union. Chief U.S. District Judge Denise Casper ruled against the union's request for an injunction. The Teamsters had sought to block the program while an arbitrator determined UPS's authority to implement it.
The union accused UPS of violating its 2023 labor contract by offering individual buyout agreements without negotiation. Judge Casper stated the union's arguments relied on a "flawed" interpretation of the contract, which she believes grants arbitrators power to nullify conflicting employee agreements.
UPS plans to move forward with its Driver Choice Program, which aims to reduce its driver workforce by offering voluntary buyouts. The company cited an 8.6% decline in package deliveries and a strategic shift away from low-profit deliveries for Amazon as reasons for the workforce reduction.
The proposed buyouts come after a previous severance offer in July 2025, which saw limited participation from union members. UPS is extending offers to 105,000 drivers for the current program, which includes $150,000 and retirement benefits.
