UPS, Teamsters reach nationwide agreement on Driver Choice Program, following disputes
Summary
UPS and the Teamsters have agreed to roll out the company’s Driver Choice Program (DCP) nationwide following recent disputes and regional pushback. The settlement limits the number of severance packages, sets payment terms and protects union seniority and rights under the National Master Agreement through to July 31, 2028.
Key Points
- The DCP is a voluntary buyout/severance programme offering lump-sum payments to eligible delivery drivers who choose to leave UPS.
- Under the agreement, qualifying drivers who accept will receive $150,000 payments for early retirement.
- Offers will be made based on seniority and business needs, with lifelong Teamsters given first refusal rights.
- UPS has agreed not to pursue or offer any other severance programmes for the life of the current National Master Agreement (through 31 July 2028).
- The total number of severance payments is capped at 7,500 drivers across all national job classifications.
- The move follows UPS’s temporary withdrawal of the buyout in the Teamsters’ Central Region after grievances from nearly 37 local unions.
- The Teamsters previously filed emergency court motions challenging UPS’s earlier rollout of the programme.
Content Summary
After constructive discussions, UPS and the Teamsters reached a nationwide settlement that allows the Driver Choice Program to proceed with firm limits and protections for union members. The agreement formalises payment amounts, seniority-based selection, a cap on total payouts, and a commitment from UPS to refrain from other severance offers while the current labour contract remains in force. The settlement resolves a contentious dispute that included regional pullbacks and legal action from the union.
Context and Relevance
This agreement matters for anyone tracking parcel delivery capacity, labour relations and UPS’s network reconfiguration. It reduces legal and operational uncertainty by setting clear rules for voluntary exits, limiting the scale of buyouts, and protecting seniority rights. For shippers and operations managers, the deal clarifies how UPS intends to right-size staffing without wholesale unilateral moves that could spark broader disputes or service disruption.
Why should I read this
Short version: this settles a messy standoff and lays out how UPS can offer buyouts without bulldozing the union. If you run operations, manage carrier relationships or care about parcel capacity and labour risk, it’s worth a quick read—we’ve condensed the essentials so you don’t have to wade through the legal filings.