UPS Buyout Plan Sparks Outrage: Teamsters Slam Illegal Move Affecting 20,000 Jobs
🚨 UPS Buyout Plan Sparks Outrage: Teamsters Slam Illegal Move Affecting 20,000 Jobs
Atlanta, July 3, 2025 – In an unprecedented move in its 117-year history, United Parcel Service (UPS) has announced a sweeping restructuring plan offering a UPS Buyout Plan to full-time U.S. drivers. Framed as a voluntary exit package, the offer is part of a larger strategy that will reportedly eliminate 20,000 jobs and shut down 73 facilities. The news has triggered severe backlash from the International Brotherhood of Teamsters, the powerful union that represents 330,000 UPS workers, calling the UPS Buyout Plan an “illegal violation” of their national contract.
The Buyout Offer Explained
The UPS Buyout Plan, officially termed the Driver Voluntary Severance Plan (DVSP), aims to incentivize long-tenured drivers to retire or resign early in exchange for a lump sum. While UPS stated that the severance package is in addition to retirement benefits like healthcare and pensions, critics argue the offer is significantly lower than what many drivers could earn if they stayed employed under the current collective bargaining agreement.
UPS claims the restructuring is necessary to respond to reduced delivery volumes—particularly from Amazon—and to navigate economic uncertainties amid past tariffs and changing logistics demands.
However, many within the labor movement say the UPS Buyout Plan is simply a corporate strategy to cut costs at the expense of workers’ rights.
Teamsters Declare War Over Contract Violation
According to Teamsters General President Sean O’Brien, the UPS Buyout Plan directly violates the 2023 national agreement, which legally requires UPS to create 22,500 new full-time positions. The five-year agreement, ratified in August 2023, also committed UPS to establishing 7,500 additional full-time jobs during the last three years of the contract.
“UPS is trying to weasel its way out of creating good union jobs by dangling insulting buyouts in front of drivers,” said O’Brien. “This is a slap in the face to our members.”
He added that the union is prepared to use “every available resource” to shut down the program, labeling the UPS Buyout Plan as “illegal and insulting.”
The Teamsters further argue that the buyout lacks protections like guaranteed employer-paid healthcare in retirement, a critical benefit that existing long-term drivers depend on.
Breach of Trust and Missing Commitments
The Teamsters union has also accused UPS of failing to provide updates required under Article 18 of the national contract, including data on the number of air-conditioned vehicles being deployed. The company had until July 1 to respond to a formal information request about 28,000 air-conditioned vehicles to be delivered by 2028. UPS requested more time but has yet to comply.
Additionally, there are growing concerns that UPS is diverting delivery work to nonunion affiliates, possibly to offset any disruption caused by the expected workforce reduction under the UPS Buyout Plan.
“Our members cannot be bought off and we will not allow them to be sold out,” said O’Brien.
Corporate History and Union Strength
This isn’t the first time UPS has tried to optimize its costs through buyouts. In 2020, the company offered corporate-level severance packages to middle managers, though the scale and controversy were significantly less severe than the current UPS Buyout Plan targeting frontline drivers.
Teamsters General Secretary-Treasurer Fred Zuckerman urged drivers to reject the buyout, reminding members that the union contract is their shield against corporate overreach.
“Carol Tomé can screw over her own team. But she’s not going to push around the Teamsters,” said Zuckerman.
What’s at Stake?
- 20,000 jobs potentially eliminated
- 73 facilities expected to close
- Healthcare and pension rights under threat
- Union contract violations leading to possible legal action
The UPS Buyout Plan represents a significant flashpoint in the broader conversation about labor rights, corporate accountability, and union strength in the United States.
The coming weeks are expected to be crucial as UPS prepares to formally announce the DVSP and the Teamsters gear up for a legal and public relations battle that could reshape labor dynamics across corporate America.
🔍 Frequently Asked Questions (FAQs)
- What is the UPS Buyout Plan?
The UPS Buyout Plan, also called the Driver Voluntary Severance Plan (DVSP), is a voluntary severance offer to full-time U.S. drivers intended to reduce the company’s workforce. - Why is the UPS Buyout Plan controversial?
The Teamsters union believes the plan violates the 2023 national contract, which mandates job creation—not elimination—and also jeopardizes workers’ retirement healthcare benefits. - How many jobs are expected to be affected?
UPS plans to eliminate 20,000 jobs and close 73 facilities under the restructuring strategy. - Does the UPS Buyout Plan include retirement benefits?
UPS claims the buyout is in addition to retirement benefits. However, the union argues many workers could lose guaranteed employer-paid healthcare if they accept the plan. - What is the Teamsters’ response?
The Teamsters have called the buyout illegal, vowed to fight it, and encouraged workers to reject it outright.
🔗 External News References
- Reuters: UPS to Offer Voluntary Buyouts
- Teamstar.org Official Statement
- CNN Business on UPS Restructuring
- Bloomberg Coverage
- Wall Street Journal on UPS-Amazon Relations
🎙️ Breaking News Headlines
- UPS Buyout Plan Sparks Union Uproar
- 20,000 Jobs at Risk, Says Teamsters
- UPS Violates Teamsters National Contract
- Mass Facility Closures Underway at UPS
- Union Declares War Over UPS Plan