UPS Withdraws $150,000 Driver Buyout Offer in 13-State Central Region After Union Grievances
United Parcel Service is rescinding its $150,000 voluntary departure incentive for parcel and linehaul drivers across 13 central states following grievances filed by 37 local Teamsters unions. The move reduces the pool of eligible drivers from about 105,000 nationwide, complicating efforts to cut 30,000 roles.
1. Program Retraction
UPS has notified Teamsters it will withdraw its $150,000 Driver Choice program for parcel and linehaul drivers in 13 central states after 37 local unions in the Central Region filed grievances under the supplemental contract rider.
2. Union Opposition
Local Teamsters contend the voluntary separation agreements breach employment security guarantees in the September 2023 national master contract by circumventing union approval for incentive programs, prompting UPS to rescind the offer in the affected states.
3. Impact on Job Cuts
With the Central Region removed, the eligible driver pool falls from roughly 105,000 to about 68,000, complicating UPS’s plan to eliminate 30,000 positions as parcel volume declines. UPS is expected to inform prior applicants of their ineligibility shortly.