UPS plan under fire: Teamsters sue to halt buyout offers

United Parcel Service's plan to offer buyouts to full-time U.S. drivers has moved from internal debate to federal court amid mounting opposition from the International Brotherhood of Teamsters.

What's Happening Now

On Feb. 9, the Teamsters filed a lawsuit and emergency motion in U.S. District Court in Massachusetts seeking a temporary restraining order and preliminary injunction to halt what the union calls "a second illegal buyout scam targeting UPS Teamsters drivers." 

The Teamsters allege that UPS's Driver Choice Program, a second round of voluntary separation offers for drivers, violates provisions of the 2023 National Master Agreement between the union and UPS. The union says UPS ignored repeated requests for contract-related information and dealt with employees outside agreed procedures.

UPS, in a statement with multiple outlets, said the separation program is "entirely voluntary" and aimed at giving drivers a choice during a major network reconfiguration. UPS emphasized that it engaged the union earlier in January and maintains that operations will not be disrupted by the legal action.

 

Background: The Buyout Program

The buyout effort traces back to mid-2025, when UPS unveiled its Drivers Voluntary Severance Plan (DVSP), offering to pay full-time drivers $1,800 for every year of service, in addition to existing retirement benefits such as pensions and healthcare.

At the same time, UPS has been cutting jobs as part of broader cost-saving measures, which include plans to eliminate up to 30,000 operational positions and close dozens of facilities.

Union Response and Legal Action

The Teamsters have criticized the buyout offer since it was first announced in July 2025, calling it illegal and a contract violation. 

"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," said Teamsters General President Sean M. O'Brien. "It is an illegal violation of our national contract."

The lawsuit and emergency motion specifically cited at least six contract violations, alleging UPS's refusal to provide information and altering job creation commitments agreed in 2023. The union argues that broad voluntary buyouts effectively reduce union jobs and could force drivers into unfavorable terms without negotiated protections.

Worker Reaction (Unofficial Social Forums)

• Some drivers took to Reddit saying the buyout could be attractive to those nearing retirement, while others warned it might undermine seniority structures and weaken future bargaining power.
• A driver took to TikTok criticizing how poorly the process is being handled amongst all parties and urges employees to do what's in their best interest.
• Others online are sharing communications they received titled "Driver Choice Program for U.S. full-time drivers" directly from UPS about the offer.

What Are The Effects

Teamsters Union

• The legal fight strengthens the union's stance on contract enforcement but could strain relations with UPS.
• If the injunction is approved, it could set an important precedent for union rights in future employment benefit changes.

UPS Drivers

•  Pro: Drivers who are close to retirement could find it financially appealing.
•  Con: This could disrupt the normal collective bargaining process and protections, which could weaken union influence.

UPS Customers

• There is no clear indication if this reorganization will disrupt your deliveries, even though UPS says it won't.

For now, the program's future is in the hands of the courts, but the dispute highlights a broader tension facing unionized industries. Whether the judge sides with UPS or the Teamsters, the outcome could shape labor relations beyond the delivery industry.

Source Links

• Teamsters union sues UPS over buyout program (Reuters)
• Teamsters ask court to block UPS buyouts (Yahoo Finance)
• UPS official statement on voluntary separation program (WSBTV)
• Background on 2025 Buyouts and union backlash (WDRB)
• Local 638 Statement on Driver Buy-Out (Reddit) 
• Teamsters Post (X) dated Feb. 9, 2026
• Teamsters News dated Jul. 3, 2025 (Teamster413 website)
• UPS Statement on U.S. network optimization (UPS website) 

 

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