'Insulting buyouts': UPS announces voluntary buyout program for U.S. drivers as the company focuses on restructuring

ATLANTA — United Parcel Service (UPS) is offering a voluntary buyout program with a financial package for its full-time U.S. drivers as part of a major network reconfiguration, allowing drivers to choose whether to leave while maintaining their earned retirement benefits.

On July 3, UPS released a statement on its website about a voluntary buyout program for U.S. drivers, offering a financial package for those who choose to leave the company.

The program comes as UPS undertakes what it calls the "largest network reconfiguration in its history" to adapt to a changing business landscape.

The program would allow drivers to receive a payout in addition to earned retirement benefits, such as pension and healthcare plans.

"As we navigate an unprecedented business landscape, we are executing the largest network reconfiguration in UPS history," the UPS statement read. 

According to UPS, the program is voluntary and has approached the Teamsters union, reaffirming its commitment to the agreements reached during 2023 contract negotiations.

The Teamsters said that the program violates their contract and made the following post on X to its members:

"Remember: UPS is obligated to create at least 22,500 new permanent positions under our current agreement — not to try to thin the workforce by dangling paltry, insulting payoffs to drivers to walk away. Stay informed. Enforce the contract. Say NO to UPS."

The Teamsters' general president will speak to its members on July 7 at 8 p.m. EST on YouTube and the UPS Teamsters app.

“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,” said Teamsters General President Sean M. O’Brien on X. 

Details about the financial package and drivers expected to participate were not disclosed.

UPS employs approximately 406,000 workers in the U.S., with drivers making up more than 75%, according to a 2024 annual report.

As UPS reconfigures its network, the company stated that it will remain committed to maintaining its industry-leading service.