The Teamsters Union on Monday initiated litigation against United Parcel Service, asserting the company's latest driver buyout initiative runs afoul of their national contract. The legal action was filed in Massachusetts District Court and, according to union statements, points to multiple breaches of the National Master Agreement.
The union noted the two sides had negotiated a contract in 2023 that covers roughly 340,000 workers represented by the Teamsters. That agreement had prevented a strike at UPS, which employs more Teamsters-represented workers than any other U.S. company, the union said.
Union documents contend the scope of UPS’s updated buyout program is materially broader than the payouts the company marketed to some drivers late last summer. At that time, UPS was reportedly promoting buyouts primarily to long-tenured drivers who were nearing retirement, the Teamsters said. The union argues the current program goes beyond that narrower offer.
According to the filing, the delivery company previously announced a buyout package in July 2025 as part of a separate network reconfiguration that included 20,000 job cuts and the closure of 73 facilities. Separately, UPS said in January it planned to cut up to 30,000 jobs and close 24 facilities as it sought to shift away from millions of low-profit deliveries for its largest customer, online retailer Amazon.com.
The union said the latest program, which it identified as the Driver Choice Program and said is expected to be announced this week, would provide drivers with a one-time lump-sum payment if they agree to "legally committing to never work for UPS again," per the union's characterization of the proposal.
In its court submission, the Teamsters detailed at least six alleged violations of the parties' National Master Agreement. The union further said UPS had not responded to more than 57 requests for information and documents concerning the revised buyout plan since late January.
UPS responded via email, saying it engaged with the Teamsters on this matter in early January and will address the union's filing through appropriate legal channels. The company added that the court filing would not affect day-to-day operations.
The filing underscores differences between UPS and its non-unionized rivals. The Teamsters pointed out that competitors such as FedEx and Amazon Logistics do not have union representation and typically offer lower pay to drivers and other delivery-related employees.
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