(WASHINGTON, D.C.) – United Parcel Service (UPS) is expected to unveil an illegal plan later this month to buyout full-time Employees represented by the Teamsters, a corporate scheme that will directly violate the Union’s National Contract protecting 340,000 Delivery Workers.

The multi-billion-dollar company’s Driver Voluntary Severance Plan (DVSP), which UPS has not yet publicly disclosed, would offer cash to Drivers to initiate early retirement or quit their job.

The DVSP, likely to be announced to Workers in the coming weeks, would leave most Drivers without quality health insurance if they retire under the program and would undermine UPS’s own legal commitment to create 22,500 more jobs under its current Teamsters contract.

Teamsters General President Sean O’Brien said: “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. It is an illegal violation of our National Contract. UPS is obligated to establish tens of thousands of new full-time jobs under the agreement, but CEO Carol Tomé and UPS’s corporate managers are hoping that if they offer paltry severance packages to enough Workers, no one will notice the company is setting the Union’s contract on fire. UPS Teamsters work too damn hard to be treated with such disrespect.”

Proposed cash offers would be far less than what Rank-and-File Teamsters now earn and could continue to make over the life of the current agreement.

Teamsters contracts have long ensured that UPS Drivers employed 30 years or more receive employer-paid health care throughout retirement, a strong Union benefit that would not be guaranteed to all Workers under UPS’s Severance Plan.

The historic five-year agreement that UPS Teamsters ratified in August 2023 guaranteed the company would fill at least 22,500 permanent full-time jobs with existing part-time Workers and create at least 7,500 additional full-time jobs during the final three years of the contract.

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