UPS Buyout Offer Now Faces Strong Opposition from Teamsters

Union Dispute Builds Over UPS Buyout Offer to Drivers

UPS Buyout Offer Presented to Full-Time Drivers

UPS is offering a new voluntary program to its full-time drivers across the United States. The program is called the UPS buyout offer, officially named the Driver Voluntary Severance Plan (DVSP). It allows drivers to leave the company in exchange for a financial package.

UPS says this is part of a larger change to its delivery network. The company calls it the biggest reorganization in its history. The UPS buyout offer is optional. Drivers who accept it would also keep any retirement benefits they’ve already earned, including pensions and healthcare.

UPS said in a statement, “Each driver would have the ability to decide if this voluntary program is beneficial to their family and the plans they have for their future.” The company also said it spoke with the Teamsters about the program.

Teamsters Say UPS Buyout Offer Breaks Contract

The Teamsters Union strongly disagrees with the UPS buyout offer. The union says it violates the national contract between UPS and the union. That agreement was approved in August 2023 and covers about 340,000 workers.

According to the union, UPS agreed to turn 22,500 part-time jobs into full-time ones. UPS also promised to create 7,500 new full-time jobs before the contract ends. The Teamsters say the UPS buyout offer could keep the company from reaching those goals.

Union leaders are also concerned that not all drivers would get full retirement health benefits if they leave through the program.

“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,” said Teamsters General President Sean M. O’Brien. “It is an illegal violation of our national contract.”

Union Requests Job and Vehicle Data from UPS

As part of the dispute over the UPS buyout offer, the union is also asking for updates on other contract items. One of these is about delivery vehicles. UPS agreed to provide at least 28,000 air-conditioned trucks by 2028.

Last week, the Teamsters formally asked UPS for details on how many jobs are open and how many cooled vehicles have been delivered. The union gave the company until July 1 to respond. UPS did not provide the data by the deadline. The company asked for more time.

Heat Relief and Subcontracting Concerns Continue

The UPS buyout offer comes as other issues remain unresolved. The Teamsters say drivers still do not have enough heat protection. They are also looking into whether UPS is moving some delivery work to non-union partners. At this point, no official findings have been made.

The union says these concerns are connected. It believes the company is not fully honoring the terms of the current labor deal.

Teamsters Prepare to Challenge UPS Buyout Offer

The Teamsters are preparing for a possible legal fight. They claim the UPS buyout offer goes against the contract. Union leaders say they will use all available resources to stop the plan.

“Our members cannot be bought off and we will not allow them to be sold out,” said O’Brien. “The Teamsters are prepared to fight UPS on every front with every available resource to shut down this illegal buyout program.”

Fred Zuckerman, General Secretary-Treasurer of the Teamsters, added, “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.”

What’s Next for the UPS Buyout Offer

UPS has not released full details about the UPS buyout offer. It’s still unknown how much money is being offered or how many drivers might take the deal. UPS says it has followed the contract and has talked with the Teamsters about the plan.

The company says the UPS buyout offer gives drivers more freedom and choice. But the Teamsters believe it could reduce union jobs and break key promises. With both sides at odds, the issue could grow more serious in the coming weeks.