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UPS Driver Buyout Proposal Violates Labor Contract, Union Says
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UPS Driver Buyout Proposal Violates Labor Contract, Union Says
Jul 3, 2025 8:16 AM

10:53 AM EDT, 07/03/2025 (MT Newswires) -- United Parcel Service ( UPS ) is drawing fire from the Teamsters union, which claims a company's plan to offer voluntary buyouts to delivery drivers violates their labor contract.

The International Brotherhood of Teamsters, which represents 340,000 UPS workers, called a voluntary severance plan an "illegal violation" of the national agreement ratified in 2023.

"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," Teamsters President Sean O'Brien said Thursday in a statement.

A UPS spokesperson said the company is "looking to offer our full-time US drivers the opportunity to participate in a voluntary program" that would provide a "generous" financial package.

"We have approached the Teamsters on this topic and remain committed to the agreements we reached in 2023," the spokesperson said in an emailed statement to MT Newswires.

UPS said the financial package would be offered in addition to earned retirement benefits, including pensions and health care.

The union said the program would undermine the company's obligation to convert part-time jobs into 22,500 full-time positions under the five-year labor deal.

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