UPS Offers Historic Buyouts to Union Drivers

UPS has announced, for the first time in its 117-year history, voluntary buyouts for its full-time U.S. drivers as it restructures operations amid declining parcel volumes, rising labor costs, and a challenging business environment. The initiative is part of a broader plan to cut 20,000 jobs and close 73 facilities. Buyout packages will supplement existing retirement benefits, including pensions and healthcare, with participation left to each driver's discretion. The International Brotherhood of Teamsters, representing about 330,000 UPS workers, opposes the plan and calls it a violation of the national contract, vowing to fight the measure. The union argues the buyouts undermine job security and contractually mandated job creation, while UPS maintains its commitment to the contract and previously agreed terms. The move highlights escalating tensions between UPS and its union workforce over job security and obligations.