UPS Driver Buyout: Legal Challenge Made by Teamsters

Teamsters Ask Court to Block UPS Driver Buyout Program

The International Brotherhood of Teamsters has filed an emergency legal motion to stop a new UPS driver buyout program. The union says the plan violates the national contract that covers UPS drivers.

The filing was submitted to the U.S. District Court in Massachusetts. The Teamsters are asking for a temporary restraining order and a preliminary injunction. The goal is to prevent United Parcel Service from launching the Driver Choice Program, known as the DCP. According to the union, UPS plans to announce the program this week.

Union Alleges Contract Violations in UPS Driver Buyout

In court documents, the Teamsters list at least six violations of the National Master Agreement tied to the UPS driver buyout. The union claims UPS engaged in direct dealing with drivers instead of bargaining through the union.

The filing also states that UPS eliminated union jobs. This is significant because the company had agreed in the contract to create more positions. The union further alleges that UPS weakened the authority of union shop stewards, reducing workplace protections.

According to the Teamsters, UPS also failed to share required information. Since late January, the union sent more than 57 requests for documents related to the UPS driver buyout. The filing says those requests were ignored while the company developed the program behind closed doors.

UPS Driver Buyout Conflicts With 2023 National Contract

The National Master Agreement between UPS and the Teamsters was ratified in 2023. It covers hundreds of thousands of full-time and part-time workers across the country.

Union leaders say the contract was approved by a strong majority of members. They argue it was designed to protect jobs, pay, benefits, and union rights. The Teamsters say the UPS driver buyout undermines those protections.

How the UPS Driver Buyout Program Would Work

Under the proposed UPS driver buyout, drivers would be offered a one-time lump sum payment. In exchange, drivers would have to agree to never work for UPS again.

The union says drivers would also be required to waive their right to union representation. They would give up long-term union wages, employer-paid health care, and guaranteed retirement benefits.

According to the filing, drivers would be forced to sign an irrevocable separation agreement. Once signed, the agreement could not be challenged. That would prevent drivers from filing grievances or seeking arbitration in the future.

UPS Driver Buyout Would Apply to All Drivers

The Teamsters say the UPS driver buyout would be offered to all drivers, regardless of seniority or years of service. This marks a major expansion compared to earlier buyout efforts.

The union argues that offering the program to all drivers would cause lasting damage. It says the plan would weaken the union and interfere with its legal right to represent workers.

Earlier UPS Driver Buyout Program Still in Dispute

The court filing compares the current UPS driver buyout to an earlier program called the Driver Voluntary Separation Program, or DVSP. That program was rolled out last summer.

According to the Teamsters, the DVSP was widely rejected by drivers nationwide. Many drivers criticized the offer publicly, including on social media.

Multiple Teamsters local unions filed grievances over the DVSP. Those grievances allege contract violations. They are expected to move to binding arbitration next month following a National Grievance Committee hearing.

The Teamsters argue that the DVSP and the current UPS driver buyout are nearly identical. Because of that, the union is asking the court to pause any new buyout efforts until arbitration is complete.

Teamsters Leaders Respond to UPS Driver Buyout

Teamsters General President Sean M. O’Brien criticized UPS leadership in a statement included in the filing.

“For the second time in six months, UPS has proven it doesn’t care about the law, has no respect for its contract with the Teamsters, and is determined to try to screw our members out of their hard-earned money,” O’Brien said.

“If Carol Tomé has buyer’s remorse for the historic, legally binding contract she signed with rank-and-file Teamsters, that’s her problem. Our union will not allow UPS to inflate its earnings reports on the backs of Teamsters families. We’ve given too much to grow and sustain this company, and we will not be sold short. UPS must dismantle its illegal buyout program and resolve its contract violations in the courts, or the Teamsters will see this greedy corporation in the streets.”

Teamsters General Secretary-Treasurer Fred Zuckerman also addressed the UPS driver buyout.

“UPS’s latest DCP scam is more than a contract violation — it’s an assault on the rule of law and on every member of the International Brotherhood of Teamsters,” Zuckerman said. “If UPS is allowed to move forward with this illegal program, it would cause irrevocable harm to our union and a majority of our hardworking members. The Teamsters Union ensured our members rejected UPS’s insulting payoff last year. Unfortunately, UPS continues to reach new levels of greed and corruption that require our fight to continue.”

UPS Financial Results Cited in Buyout Dispute

The Teamsters also referenced UPS financial data in the court filing. On Jan. 27, UPS reported collecting more than $8.5 billion in cash during the previous quarter.

The company also returned more than $6.4 billion to shareholders. In addition, UPS spent $1 billion on stock buybacks during the same period.

Union leaders cited those figures as evidence that UPS has the financial strength to honor its labor commitments without pursuing a UPS driver buyout that the union says violates the contract.

What Happens Next in the Case

The Teamsters are asking the court to immediately block the UPS driver buyout. They also want a pause on any similar incentive programs until an arbitrator rules on the earlier DVSP grievances.

If the court grants the restraining order, UPS would be prevented from moving forward with the program for now. Arbitration related to the earlier buyout is expected to begin next month.

The legal fight highlights ongoing tensions between UPS and the Teamsters following the 2023 national contract. The outcome could have lasting effects on union drivers and labor relations across the trucking and package delivery industry.