Teamsters Reach Strong Settlement with UPS on Driver Severance Packages
teamster.org • • general
Key Points:
- UPS has agreed to a new settlement with the Teamsters National Negotiating Committee, capping severance offers and protecting the seniority rights of Teamsters drivers amid disputes over unilateral driver buyouts.
- The agreement limits severance packages to 7,500 drivers nationwide, with early retirement payments of $150,000 offered based on seniority to long-haul feeder drivers and Regular Package Car Drivers.
- UPS withdrew its Driver Choice Program (DCP) in 13 states after national grievances filed by the Teamsters, leading to negotiations that resulted in this settlement.
- The settlement prohibits UPS from offering any other severance programs for the duration of the current Teamsters National Master Agreement, which expires in July 2028.
- Teamsters General President Sean M. O’Brien emphasized that the agreement ensures UPS respects union contracts and seniority rights, marking a victory for Teamsters members and their bargaining power.
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