04/06/2026
After months of urging UPS to honor its Teamsters contract and return to the bargaining table over unilateral driver buyouts, UPS on Sunday agreed to terms on a new settlement with the Teamsters National Negotiating Committee — capping severance offers while rewarding and protecting the seniority of Teamsters drivers.
Teamsters General President Sean M. O’Brien successfully pushed UPS into negotiations in the wake of national grievances filed against the package giant over its Driver Choice Program (DCP), which UPS pursued in February without agreement from the union. Those grievances forced UPS to withdraw the DCP in 13 states in March before ultimately agreeing to negotiate.
Under terms of the strong new settlement, UPS will be limited in the number of severance packages it can offer. Those who wish to accept them will receive $150,000 payments for early retirement. Offers will be made to long-haul feeder drivers and Regular Package Car Drivers based on seniority in all regions of the country. UPS has agreed not to pursue or offer any other severance programs for the life of the current Teamsters National Master Agreement, which does not expire until July 31, 2028.
“UPS never had the contractual right to unilaterally offer driver buyouts, but with enough pressure and member solidarity UPS finally did the right thing by putting its commitments to hardworking Teamsters down in writing,” O’Brien said. “Lifelong Teamsters who have given so much of themselves to making UPS the king of parcel delivery will have the right of first refusal on any severance agreements. Union seniority and the rights of all our members will be honored. UPS will no longer have the chance to go around the union without giving Teamsters the respect they deserve at the bargaining table.”
The settlement between the Teamsters and UPS caps the total number of severance payments to 7,500 drivers across all job classifications nationwide.
“Rank-and-file Teamsters have given their blood, sweat, tears and, most importantly, their labor to ensure UPS’s success for a century. This agreement is a powerful reminder to UPS executives that the Teamsters never want to harm the company’s ability to be competitive, but we will also never tolerate any violations of our contract or our members’ rights,” O’Brien said.
