UPS starts informing delivery drivers about a voluntary buyout offer

UPS Offers Voluntary Buyouts to Thousands of Drivers

UPS has started reaching out to approximately 105,000 package van drivers nationwide, inviting them to participate in a voluntary severance program. This initiative provides a $150,000 payout for those who choose to resign, as confirmed by the company on Wednesday.

Last week, a federal judge authorized the logistics giant to proceed with these buyout offers, despite objections from the Teamsters union. UPS is implementing a plan to cut 30,000 jobs this year, aiming to streamline operations and reduce expenses in response to lower package volumes. During court proceedings, Teamsters representatives estimated that as many as 10,000 drivers might accept the offer.

Through the Driver Choice Program, full-time drivers can opt to leave their positions in exchange for a $150,000 pre-tax lump sum, along with any accrued retirement benefits such as pension and healthcare. All drivers, regardless of their length of service, are eligible for this payment.

Genny Bowman, UPS’s vice president of communications, confirmed that notifications about the buyout program are being sent to drivers across the United States.

“We are in the process of sharing program details with our drivers over the next several days,” UPS stated.

Court documents reveal that the separation date for those accepting the offer is set for late April.

UPS has also indicated that if not enough drivers accept the voluntary package, involuntary layoffs may be necessary. In addition, the company is reducing its warehouse workforce through attrition and layoffs as it consolidates operations, with 22 facilities scheduled to close this year.

Last fall, around 3,000 drivers accepted a previous buyout offer from UPS, but that package was less lucrative, providing $1,800 per year of service with a minimum payout of $10,000.

The Teamsters union has argued that UPS’s actions violate the national contract signed in August 2023, which included commitments to increase staffing. The union contends that such buyouts represent a change in employment terms that should be negotiated. However, Judge Denise Casper of the U.S. District Court in Massachusetts dismissed the union’s concerns, noting that any arbitration outcomes would still apply to affected workers and that voluntary buyouts are preferable to forced terminations.