UPS's drive to eliminate positions in its workforce has finally come for the rank and file. Just two years after UPS narrowly avoided a strike by its unionized Teamsters employees, the carrier is in hot water with the union once more.

On July 3, UPS announced that, due to reconfigurations, all drivers are now eligible for a voluntary buyout offer. Why the buyout? How has the Teamsters union responded? And how can you protect your bottom line as UPS reduces its workforce? We'll share everything you need to know.

What is UPS offering?

UPS has introduced a voluntary program for its full-time U.S. drivers, offering a "generous financial package" to those who choose to leave the company. This payout is in addition to any earned retirement benefits, including pension and healthcare.

Why now? As UPS cuts 50% of Amazon parcel volume by the end of 2026, it also plans to reduce its workforce by 20,000 positions by the end of 2025. UPS says it's "executing the largest network reconfiguration in UPS history" because of the changing business landscape. UPS states that it has engaged with the Teamsters union regarding this program and reaffirms its commitment to the agreements reached in 2023, emphasizing the crucial role of its drivers in the company's success and the importance of reliable service.

What Does Teamsters Have to Say About the Buyout?

The Teamsters website tells a different story.

The union's General President Sean M. O'Brien calls this buyout an "illegal violation" of the agreement reached in 2023. He says, "UPS is trying to weasel its way out of creating good union jobs here in America by dangling insulting buyouts in front of Teamsters drivers."

Here's a refresher on a few items from the 5-year agreement reached in 2023:

●       Promote 22,500+ part-time workers to permanent full-time positions
●       Create 7,500+ additional full-time jobs in the contract's final three years, which begin at the end of this month
●       Provide 28,000 air-conditioned vehicles by 2028

The Teamsters union prides itself on ensuring that unionized UPS employees with more than 30 years of service receive employer-paid healthcare throughout retirement. Drivers who accept this voluntary buyout would likely not receive quality health insurance.

Teamsters General Secretary-Treasurer Fred Zuckerman calls on drivers to "reject this illegal and insulting buyout when UPS makes it public."

Will 20,000 Fewer Drivers Affect You?

The potential reduction of 20,000 drivers raises questions about the impact on UPS's delivery services and, consequently, on businesses and consumers. While UPS aims to optimize its network and potentially increase efficiency through reconfigurations and automation, a significant reduction in its workforce could lead to changes in delivery speeds, service areas, and overall capacity, particularly if the transition is not seamless or if unforeseen challenges arise.

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