UPS offers buyouts while Teamsters reject plan as illegal

In the United States, on July 4, 2025, the United Parcel Service (UPS) announced it would implement a voluntary buyout program for its full-time drivers. This decision is part of UPS's effort to execute what it describes as the largest network reconfiguration in the company's history. As a first-of-its-kind initiative, full-time drivers are being offered a financial package to voluntarily leave their positions. Though the specifics of the financial package have not been disclosed, UPS has indicated that it would be in addition to any retirement benefits that the drivers may have accrued, including pensions and healthcare. UPS stressed that drivers could assess whether this option was beneficial for them and their families, a critical consideration amid the changing employment landscape. Moreover, the drivers' union, the International Brotherhood of Teamsters, has been informed of this plan. However, the union has publicly rejected the buyout, arguing that it undermines their commitment to protect the jobs of 340,000 delivery workers and create an additional 22,500 jobs. Teamsters general president Sean O'Brien issued a statement accusing UPS of attempting to evade their obligations to create good union jobs, characterizing the buyout offer as insulting. He has declared that the union would take necessary actions to oppose this program, claiming it violates their existing national contract. Furthermore, O'Brien highlighted the contract's requirement to fill a guaranteed minimum of 22,500 permanent full-time positions, thereby reinforcing the union's stance against the buyout program. The announcement of this buyout also aligns with the union's claims that UPS has fallen short on supplying at least 28,000 air-conditioned vehicles to its drivers by the deadline of 2028. The contention surrounding the buyout offer has heightened tensions between UPS and the union, as the latter has expressed readiness to contest UPS's actions through various methods available to them. As UPS anticipates reducing its workforce by around 20,000 positions this year, the buyout proposal has emerged as a controversial topic within labor circles, further complicating the employer-employee relationship in the delivery sector.