UPS, Teamsters Reach Driver Severance Settlement

UPS and the Teamsters National Negotiating Committee have reached a settlement regarding driver severance offers, limiting the number of buyouts and protecting driver seniority. This agreement concludes a period of significant dispute between the company and the union.

Background on the Driver Choice Program

The settlement follows months of negotiations and national grievances filed by the Teamsters against UPS’s Driver Choice Program (DCP). The union had strongly opposed the DCP, which UPS initially introduced in February without prior union agreement. This opposition led to the program's withdrawal in 13 states in March, prompting the formal negotiations.

Details of the New Severance Agreement

Under the new settlement, UPS will cap the total number of severance packages. The company will offer a maximum of 7,500 buyouts to drivers across all job classifications nationwide.

Eligible drivers, including long-haul feeder drivers and Regular Package Car Drivers, will receive $150,000 for early retirement. These offers will be based on seniority in all regions.

UPS has committed not to pursue any other severance programs for the duration of the current Teamsters National Master Agreement, which is set to expire on July 31, 2028.

Teamsters General President Sean M. O’Brien commented that UPS did not have the contractual right to unilaterally offer driver buyouts. He emphasized that the company has now formalized its commitments in writing, ensuring that union seniority and member rights will be honored.