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Teamsters urge judge to block UPS from offering $150,000 buyouts to drivers
Reuters· 2026-02-19 19:22
Core Viewpoint - The International Brotherhood of Teamsters is seeking to block UPS from offering $150,000 buyouts to drivers, fearing that over 10,000 drivers may accept these offers, which the union argues violate their labor contract [1][2]. Group 1: Buyout Program Details - UPS plans to extend buyout offers to 105,000 employees as part of a workforce reduction strategy [1]. - The union claims that the buyout plan was initiated without negotiations, violating the 2023 labor contract [1][2]. - UPS previously launched a buyout program that offered $1,800 per year of service, with a $10,000 minimum, but only 3,000 drivers opted in [1]. Group 2: Union's Position - The union estimates that tens of thousands of drivers will be tempted to apply for the new buyout offers, hoping to receive the $150,000 payout [1]. - The union's attorney argues that accepting the buyouts could lead to chaotic situations if later deemed improper by an arbitrator [1]. Group 3: UPS's Defense - UPS's counsel contends that the labor contract does not prohibit offering buyouts and that layoffs would be the alternative, which the contract allows [1]. - UPS is addressing an 8.6% decline in package deliveries, which is expected to continue into 2026, and is seeking to provide an opportunity for employees to leave voluntarily [1].