UPS is rolling back its voluntary driver buyout program across 13 states from Nebraska to Ohio, according to the International Brotherhood of Teamsters.
The decision comes after significant pushback to the Driver Choice Program, with more than 30 local unions filing grievances against the parcel carrier, according to the notice. The Teamsters also filed a lawsuit against the parcel company in February to stop the latest round of driver buyouts, although the case was denied by the U.S. District Court of Massachusetts.
In the suit, the union alleged that the voluntary buyout program had at least six violations of its National Master Agreement with UPS. The alleged violations included the direct dealing of new contracts with workers and the elimination of jobs when UPS contractually agreed to establish more positions.
However, UPS told Supply Chain Dive that the Driver Choice Program complies with its contract with the union and “has been well-received by our U.S. drivers around the country.”
“Teamster local unions in the Central Region have raised strong opposition to the Driver Choice Program (DCP) and have demanded that UPS not offer the DCP to drivers,” UPS said in an emailed statement. “We’ve engaged in discussions with the local unions in the Central Region regarding driver participation and in some areas those conversations continue.”
The 13 states where UPS is walking back the driver buyout program make up the Teamster’s central region, which covers more than 68,000 union members, per the union’s notice.
“The Teamsters strongly urge UPS to take the next right step and dismantle its Driver Choice Program across the country,” Teamsters General President Sean O’Brien said in a statement. “If UPS fails to do right by the men and women who deliver its packages and generate its billions in profit, the Teamsters will pursue our grievances nationwide and defeat UPS in arbitration.”
UPS in January announced its intention to launch its Driver Choice Program as it seeks to improve its bottom line and adjust to handling fewer deliveries for Amazon. Under the latest program, UPS planned to offer a $150,000 separation package for full-time U.S. drivers, with the enrollment window running from Feb. 13 to March 12 and separations beginning April 26.
The initiative came months after UPS implemented a similar separation program called the Driver Voluntary Separation Program. UPS executives touted the program as successful, with about 90% of affected drivers voluntarily exiting the company on Aug. 31.
