Dive Brief:
- UPS is offering voluntary buyouts to its full-time U.S. drivers amounting to $1,800 per year of service, with a minimum payout of $10,000, according to an announcement from the carrier Friday.
- Interested drivers must apply for the program between July 18 and July 31, according to a UPS employee communication viewed by Supply Chain Dive. Applicants will be considered for separation dates between Aug. 31 and Oct. 31 "based on the local needs of the business."
- "If the maximum number of applications is exceeded, approvals will be granted in seniority order," the communication said. "Additional applications may be considered for separation dates between Feb. 1, 2026, and March 31, 2026."
Dive Insight:
The undertaking, called the Driver Voluntary Separation Program, is the first in UPS' history for delivery drivers. The financial incentive available through the program is in addition to earned retirement benefits like pension and healthcare, per UPS.
Word of the program spread on July 3, when the International Brotherhood of Teamsters union said UPS' buyout plan was in motion. The Teamsters represent more than 300,000 UPS employees under a five-year contract reached in 2023.
“Our members cannot be bought off and we will not allow them to be sold out," Teamsters General President Sean O’Brien said in the union's announcement. "The Teamsters are prepared to fight UPS on every front with every available resource to shut down this illegal buyout program."
The union urged members to reject the buyout offers in a LinkedIn post on Friday. UPS did not specify what would happen if a lower-than-expected number of drivers applied for the program.
UPS is enacting the buyout program in the midst of a major network overhaul to boost profitability, which will feature several facility closures and an over 50% volume reduction from Amazon, its top customer. The initiative also comes after the carrier revealed plans in April to cut roughly 20,000 U.S. positions this year.
"As we work through our network reconfiguration, we remain steadfast in our commitment to providing our customers with the reliable, industry-leading service they expect from UPS," the company said in Friday's announcement.
