Teamsters sue UPS, alleges violations over driver buyout program

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The International Brotherhood of Teamsters, the union representing more than 300,000 UPS workers nationwide, is suing UPS, the shipping and logistics giant, alleging the company has violated the 2023 labor contract with its most recent employee buyout option.

The voluntary separation program, the second UPS has offered employees in less than a year, is focused on full-time drivers and was first announced Jan. 27 during UPS‘ quarterly earnings call.

During the Jan. 27 call, UPS said it plans to globally reduce operational positions by up to 30,000 and close more than 20 facilities across the company in 2026 — and it expects to do this, in part, through buyouts.

“UPS has proven it doesn’t care about the law, has no respect for its contract with the Teamsters, and is determined to try to screw our members out of their hard-earned money,” Teamsters General President Sean O’Brien said in a news release.

“… UPS must dismantle its illegal buyout program and resolve its contract violations in the courts, or the Teamsters will see this greedy corporation in the streets.”

The planned buyout offers for drivers, which Teamsters said is expected to be announced to eligible workers this week, is only the second time in company history that UPS has made an offer like this to drivers, with the first time occurring in July 2025.

Back in 2025 when a buyout was first offered, the Teamsters called the voluntary offer to drivers “insulting” and once again alleged the program violates the terms agreed to in the 2023 labor contract.

“We are aware of the Teamsters‘ response to the voluntary separation program we planned to offer our U.S. full-time drivers and are working to resolve the matter through the legal process. This does not affect our operations, and we will continue to provide the reliable service our customers expect from UPS,” a UPS spokesperson said in an email to The Courier Journal.

“The world is changing, and the rate of change is accelerating. As we navigate these changes and continue to reshape our network, our drivers appreciate having choices, including the option to make a career change or retire earlier than planned. We engaged with the Teamsters on this topic in early January. We are disappointed the Teamsters have chosen to oppose a program that is entirely voluntary and would provide a great benefit to our employees, particularly as we continue to right-size our workforce.”

Here’s what else to know:

Who is eligible for the UPS buyout?

At Teamsters Local 89, which represents UPS workers at Worldport and Centennial Hub in Louisville, the 2025 buyout offer applied to roughly 800 eligible drivers, the union president previously told The Courier Journal. It is unclear how many Louisville-based drivers are eligible for the second wave of buyouts.

Why do Teamsters say the UPS buyout violates the 2023 contract?

The Teamsters said in a news release that UPS has made at least six violations of its National Master Agreement from 2023 with the rollout of the buyouts, “including direct dealing of new contracts with workers, elimination of union jobs when UPS contractually agreed to establish more positions, and erosion of the rights and privileges of union shop stewards, among other charges.”

The 2023 labor contract between the Teamsters and UPS was tensely negotiated over the course of several months, with multiple infliction points where it looked like the Teamsters would walk out on a nationwide strike. In the final days before a strike was inevitable, the two sides agreed to a contract that committed to job growth, wage increases, air conditioning being installed in package cars and a slew of other benefits — with Teamsters ultimately calling the contract a “historic” win for workers.

The union claims since late January it issued more than 57 requests for information and documents to UPS related to the driver buyouts, which are expected to be called “the Driver Choice Program” but UPS “ignored the union‘s requests and appear to have developed the DCP behind closed doors.”

The Driver Choice Program is expected to provide workers who accept a one-time lump sum payment and require workers to legally commit to not work at UPS again in the future and waive union representation, the Teamsters said in the press release.

The Teamsters have requested an injunction in the U.S. District Court in Massachusetts to prevent the rollout of the UPS buyout.

“If UPS is allowed to move forward with this illegal program, it would cause irrevocable harm to our union and a majority of our hardworking members,” said Louisville native and Teamsters General Secretary-Treasurer Fred Zuckerman. “The Teamsters Union ensured our members rejected UPS‘ insulting payoff last year. Unfortunately, UPS continues to reach new levels of greed and corruption that require our fight to continue.”

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Reporting by Olivia Evans.