The International Brotherhood of Teamsters has filed a lawsuit against UPS, seeking a temporary restraining order on the carrier's next planned round of driver buyouts, according to an announcement from the union Monday.
Last month, UPS revealed plans to launch another voluntary buyout program for full-time U.S. drivers — which are represented by the Teamsters — just months after deploying a similar separation program. The staffing changes come as UPS continues to rightsize its network in the face of lower volume from Amazon.
The Teamsters said the latest program violates the union's labor contract with UPS, including through the "elimination of union jobs when UPS contractually agreed to establish more positions," according to the announcement. The injunction request aims to prevent UPS from rolling out the buyouts and establish a stay on the carrier's ability to offer these programs until an arbitrator rules on alleged violations related to last year's buyout program.
"We’ve given too much to grow and sustain this company, and we will not be sold short," Teamsters General President Sean O’Brien said in the union's announcement. "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."
UPS is working to resolve the matter through the legal process, the company said in an emailed statement to Supply Chain Dive. It added that the lawsuit doesn't affect its operations.
Prior to the lawsuit, UPS planned to offer a $150,000 separation package for full-time U.S. drivers regardless of years of service, according to an internal communication to drivers viewed by Supply Chain Dive.
"The offer is in addition to any retirement benefits earned, including pension and healthcare benefits," the communication said, adding that UPS engaged with the Teamsters about the matter in early January.
Following the Teamsters' lawsuit, which was filed in the U.S. District Court in Massachusetts, the timing of the new buyouts is unclear. While the Teamsters said the carrier had planned to announce the program this week, UPS didn't specify in its statement or communication to drivers its expected timeline to launch the program.
The Teamsters said the planned buyout would be in a one-time, lump sum payment and characterized the program as much broader than what UPS deployed previously. Last year, the company offered full-time U.S. drivers payouts of $1,800 per year of service, with a minimum offer of $10,000. The offer tended to pique the interest of drivers with 25 to 40 years of service, Nando Cesarone, EVP and president U.S. for UPS, said in July.
Upon the rollout of last year's buyouts, experts flagged the loss of veteran driver knowledge as a potential risk to delivery operations, but UPS said it remained committed to providing high levels of service even amid the staffing adjustments.
