A lawyer for the International Brotherhood of Teamsters told a federal judge that the union expects more than 10,000 United Parcel Service drivers would accept $150,000 buyout offers if the company is permitted to go forward with its planned voluntary separation program.
Michael Feinberg, representing more than 320,000 UPS workers, made the estimate as he urged Chief U.S. District Judge Denise Casper in Boston to enjoin UPS from rolling out the program. The union contends the buyout plan was put in place without negotiating with the union and therefore violates the 2023 labor contract between the parties.
The Teamsters say the contract broadly prohibits UPS from entering into individual agreements with drivers of the kind the company proposes. To challenge the program, the union filed suit on February 9. UPS had announced on January 27 that it plans to cut as many as 30,000 jobs and close 24 facilities as part of an effort to exit a large volume of low-profit deliveries tied to its biggest customer, Amazon.com.
Feinberg pointed to a prior buyout program introduced last year that also met resistance from local Teamsters unions. That earlier offer provided $1,800 in severance for each year of service, with a $10,000 minimum, to eligible drivers. Only 3,000 employees participated, the union lawyer said, a response that prompted UPS to enhance its incentive in an apparent effort to secure wider participation.
Feinberg said the company intends to present buyout offers to roughly 105,000 eligible employees. He warned that tens of thousands could be "seduced to apply for this hoping to get the $150,000 jackpot." The union's argument is that employees who accept these voluntary separations could later be deemed to have left under agreements that an arbitrator might rule improper. Without a preliminary injunction from Judge Casper, Feinberg said, an arbitrator would confront an "impossible" task in restoring those workers to their positions.
"It’s going to be chaotic if not impossible for the arbitrator to remedy that situation," Feinberg said.
Opposing the union, UPS lawyer James Nelson argued that the contract does not categorically bar the company from offering buyouts to unionized drivers. Nelson said the alternative to voluntary offers would be compelled layoffs, which the contract plainly permits. He also asserted that federal labor law limits the court's authority to grant injunctive relief in this type of labor dispute.
Nelson stressed that the buyout initiative is intended to provide workers the option to leave in exchange for significant financial consideration while allowing the company to reduce headcount more cooperatively. He added that halting the buyout program would hinder UPS' effort to shrink its driver workforce in response to an 8.6% decline in package deliveries, a downturn the company expects will continue into 2026.
"We’re seeking to give people an opportunity to leave if they like to in exchange for substantial financial consideration," Nelson said.
Judge Casper did not issue an immediate ruling at the hearing but indicated she planned to issue a decision "in short order."
Contextual note: The parties disagree over whether the company may lawfully offer individual separation agreements to unionized employees under the 2023 labor pact. The union’s lawsuit seeks to stop the buyout rollout pending resolution of that contractual dispute. UPS contends that offering buyouts is a lawful management option and that forcing layoffs instead would be more disruptive.