UPS is taking heat over a dramatic move that could shrink its delivery force, and possibly the number of trucks on the road.
The company is under fire as workers brace for what could be a drastic reduction in deliveries across the country.
UPS drivers are among the highest paid in the country, with strong retirement perks under the union contract (stock image)[/caption]
UPS is offering buyouts to full-time drivers for the first time in its 117-year history.
The program, quietly rolled out Thursday, comes as executives cite “an unprecedented business landscape” in a new statement.
UPS, headquartered in Atlanta, Georgia, said drivers could voluntarily leave the company in exchange for a financial package.
The move sparked outrage from the Teamsters union, which represents roughly 340,000 UPS workers.
“Our members cannot be bought off and we will not allow them to be sold out,” Teamsters President Sean M. O’Brien said in a statement.
The Teamsters accused UPS of violating their national contract and trying to “weasel” out of commitments to create new full-time union jobs.
“UPS is trying to weasel its way out of creating good union jobs here in America by dangling insulting buyouts,” O’Brien said.
Under the 2023 contract, UPS agreed to create 22,500 full-time positions and add another 7,500 over the final three years of the deal.
The union claims UPS’s proposed Driver Voluntary Severance Plan (DVSP) threatens those job guarantees.
It also warns the program could strip retirees of key benefits, including health insurance.
“UPS Teamsters work too damn hard to be treated with such disrespect,” O’Brien added.
According to UPS, the buyout is optional and won’t impact existing retirement packages, including pensions and healthcare.
Each driver would “have the ability to decide if this voluntary program is beneficial to their family,” the company stated.
UPS Rate & Surcharge Changes – Effective June 2, 2025
Zone Realignment: Some ZIP code pairings have shifted to new Zones. Updated zone charts are now available on UPS.com.
Higher Surcharges for Zones 7+:
- Additional Handling – Weight: $55
- Additional Handling – Dimensions: $38
- Additional Handling – Packaging: $31.50
- Large Package – Commercial: $260
- Large Package – Residential: $305
Remote Area Surcharge: Now applies to Ground Saver shipments to remote ZIPs in the lower 48 states.
Shipping Charge Correction Fee: $1.65 per corrected package or 12% of total correction charges- whichever is greater.
Over Maximum Limits Fee: Increased to $1,775 per package.
New UPS rates now match FedEx’s highest Zone 7–8 surcharges, signaling tighter price alignment between the two carriers.
Source: Trans Impact
UPS insists it is honoring its 2023 contract and has spoken with the Teamsters about the plan.
The company is also in the middle of what it called “the largest network reconfiguration in UPS history.”
Earlier this year, UPS revealed it would cut 20,000 jobs and close 73 buildings to save costs.
In January, it slashed its agreement with Amazon, its top client, cutting shipment volume by more than half through 2026.
The Teamsters say the new buyout plan hasn’t been fully disclosed to members yet and warn it’s “illegal.”
They have demanded data from UPS on open positions and delivery vans, including air-conditioned vehicles promised under the current contract.
UPS has so far failed to respond to the union’s request and asked for more time, the Teamsters claim.
“They can’t force anything on us,” Teamsters Secretary-Treasurer Fred Zuckerman said.
Zuckerman also called out UPS CEO, Carol Tomé , saying she could “screw over her own team.”
He added that “she’s not gonna push around the Teamsters.”
UPS previously offered buyouts to corporate-level employees in 2020 to trim payroll.
Earlier this year, UPS revealed it would cut 20,000 jobs and close 73 buildings to save costs (stock image)[/caption]
