UPS chiefs have resorted to making a change that they have never done before in its 117-year history.
Execs revealed the dramatic decision was needed in a bid to adapt to what they describe as an “unprecedented” climate.
UPS chiefs have been scrambling to find ways to make savings and cut costs.
They have decided to offer payouts to delivery drivers, as reported by The Wall Street Journal.
Delivery drivers at the company, which was founded in 1907, earn around $170,000 a year.
Full-time delivery drivers also have access to perks such as seven weeks of paid vacation.
They are given 18 days off on average for holidays and sick leave.
But, it’s not the first time the company has offered payouts.
In 2023, UPS bosses offered payments to pilots and around 200 subscribed to the offer.
Earlier this year, UPS chiefs announced new surge fees would be coming into effect.
A surge fee of $1.25 per pound came into force on May 18 for those shipping items to Canada using the UPS Worldwide economy service.
Meanwhile, a $0.49 per package hike was slated to come into force for customers using the UPS standard service.
Bosses warned that the fee would remain in place until further notice.
Surge fees were also imposed on shipments set for the US earlier this year.
The extra charge was tacked onto items coming from China, Hong Kong and Macau.
The surge fee came against the backdrop of Donald Trump‘s tariff agenda on China.
UPS is not the only delivery service that has rolled out reforms.
Bosses at the USPS have also made a series of changes, affecting millions of customers.
Chiefs announced that there would be two windows where reforms would come into place.
The first set of changes came into effect on April 1, while the second came into place on July 1.
Bosses hope that package of measures will save around $36 billion over the next decade.
The changes came into place against a backdrop of customers being warned about disruptions.
While, The U.S. Sun reported how Americans were faced with lengthy waits for mail.
USPS mess-ups
The United States Postal Service is facing customer complaints as the mail agency struggles to stay afloat admit workforce cuts and financial loss.
Customers were recently warned about major disruptions as mail carriers were assigned new duties under a new plan by the Trump administration.
Other residents were slapped with unexpected bills and fees after their mail was delivered late for months.
The USPS also admitted the reason why packages stopped being delivered to certain homes in rural areas.
The agency gave a pitiful five-word response to homeowners after they didn’t receive mail for two months.
They were also forced to respond after mail sat untouched at a key processing hub for weeks.
Wiesbaden, Germany – May 25, 2012: UPS delivery vehicle and mailman in the city center of Wiesbaden. UPS is one of the largest package company headquartered in Sandy Springs, Georgia.[/caption]
