In a controversial decision as part of an aggressive overhaul to its network, UPS is offering buyouts to full-time U.S. drivers, aiming to cut 20,000 jobs.
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The move has stirred a storm of criticism from the Teamsters union, which alleges a breach of contract.
For the first time in its illustrious history, UPS is offering voluntary buyouts to its full-time U.S. drivers.
In an era where every company is looking to tighten its belt, UPS has embarked on this radical transformation plan.
The company intends to close 73 facilities, drastically reshaping its operational footprint.
This drastic reconfiguration comes in the wake of reduced Amazon deliveries and the impact of tariffs introduced during President Trump’s administration.
UPS aims to enhance its financial health by cutting 20,000 front-line positions and shutting down numerous facilities nationwide.
UPS revealed in a press release that the buyout package includes benefits like pension and healthcare, in addition to the severance pay.
“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. It is an illegal violation of our national contract,” stated Teamsters President Sean O’Brien.
The Teamsters union, representing about 330,000 UPS workers, has condemned these buyouts as a violation of its contract.
UPS had supposedly committed to adding 22,500 more jobs.
UPS’s “Network of the Future” plan aims to improve profits by eliminating the excess capacity.
UPS expects to save over $1.2 billion with these reductions.
However, this transition isn’t just about cutting down; UPS plans to increase automation, moving towards a more efficient and technologically driven framework.
“The Teamsters said the buyout program, called a Driver Voluntary Severance Plan, would directly violate its contract protecting 340,000 delivery workers,” AJC reports.
The landscape of parcel deliveries is evolving, and with it comes the challenge of adapting to unforeseen circumstances such as changes in tariff regulations.
As UPS forges ahead with its ambitious reconfiguration, stakeholders will watch closely to see how the dust settles in this high-stakes game of logistics and labor rights.
UPS VIOLATES TEAMSTERS NATIONAL CONTRACT WITH PLAN FOR BUYOUTS
United Parcel Service (UPS) is expected to unveil an illegal plan later this month to buyout full-time employees represented by the Teamsters, a corporate scheme that will directly violate the union’s national… pic.twitter.com/FgdXQWWQLA
— Teamsters (@Teamsters) July 3, 2025
