UPS Limits Teamsters Driver Buyouts to $150K

UPS reached an agreement with the International Brotherhood of Teamsters that limits its driver buyout program scope. Under the “Driver Choice Program,” UPS can provide $150,000 buyout payments to a maximum of 7,500 drivers.

The Teamsters said lifelong Teamsters have a right of first refusal on severance agreements, and UPS agreed not to pursue other severance programs for the duration of the national master contract, which runs until July 31, 2028. UPS also said applications will be approved based on seniority and business needs, and it previously rolled back the program across 13 states in its central region after local opposition.