UPS Seeks Dismissal of Teamsters Lawsuit Over $150K Driver Buyout
UPS has asked a federal court to dismiss the Teamsters’ lawsuit against its $150,000 Driver Choice Program, calling the union’s injunction request an “improper effort” to litigate a labor dispute while arbitration is pending. Available to 105,000 drivers and following last year’s 3,000-employee buyout, it remains on hold pending arbitration.
1. UPS Requests Dismissal
UPS filed a 26-page opposition in federal court, arguing the Teamsters’ lawsuit over its 2026 Driver Choice Program is an improper attempt to substitute litigation for arbitration under the Norris-LaGuardia Act.
2. Teamsters’ Objections
The union claims the $150,000 buyout plan and last year’s 3,000-employee program violate the 2023 national master agreement by altering employment terms without negotiation.
3. Program Details and Scope
The voluntary buyout offers $150,000 severance plus accrued pension and healthcare benefits to about 105,000 U.S. drivers, following last year’s program that saw over 3,000 exits.
4. Next Steps and Operational Impact
A preliminary injunction paused the program rollout for February-March offers, with an arbitrator’s decision needed before buyouts proceed in April to clarify second-quarter staffing.