Job cuts have hit UPS workers at an unprecedented level, but there is a spark of hope for some workers to leave of their own volition. Parcel delivery firm UPS is offering voluntary buyouts in 2025, giving workers the opportunity to accept the deal and leave their jobs. The Teamster Union was the first to bring the matter to light, and unsurprisingly, they are primarily enraged by the move. Teamsters’ reaction to the buyout has been one of anger, as they referred to it as an “illegal violation” of the national contract, which had required the organization to create 22,500 jobs, not eliminate just as many roles.
The UPS buyout news in July doesn’t come as a shock, as the company had previously announced plans to cut 20,000 roles and close 73 facilities to scale down its operations. The decision to lay off workers at UPS was announced as a direct result of the company’s plans to sever ties with its biggest customer, Amazon. The UPS voluntary buyouts for the drivers are reportedly the first instance of such a dealing in its 117-year history, making this a monumental moment in the organization’s legacy.
UPS’ voluntary buyout offer is facing union resistance as the organization attempts to scale down is operations. (Image: Freepik)
UPS Voluntary Buyouts in 2025—What We Know So Far
United Parcel Service employs around 330,000 full-time and part-time employees, and provides one of the most comprehensive networks of delivery drivers across the country. Unfortunately, due to rising labor costs and a decline in the active demand for its services, the business is now looking to cut down on its extensive network and reposition itself in the market with a smaller workforce on call.
The UPS voluntary buyouts being offered in 2025 represent the first time the company has made such a move, but troubling times have come calling, and job cuts appear to clear the path forward for the business. The terms of UPS’ buyout package have not been made public, so it’s unclear just how much is being offered to those who leave voluntarily.
All we know is that as part of the company’s “largest network reconfiguration” ever, full-time drivers will have the opportunity to agree to the terms of the “generous financial package” and make a gracious exit if they prefer. Reuters reports that the buyout package will be provided in addition to any earned retirement benefits offered, including pension and healthcare services.
As UPS Drivers Are Offered an Early Exit, the Teamsters Union Stands Against It
From the outside looking in, the UPS voluntary buyout packages for 2025 appear to be a good deal for workers who don’t want to wait around and see if they get culled by the cuts. Even without knowing the specifics of the deal, it’s clear that the UPS drivers who are offered an early exit could take the deal and retirement benefits and focus on their family as they plan out their next move. So why is the Teamsters’ reaction to the buyout so negative?
The Teamsters union doesn’t appear to be upset exclusively by the terms of the offer, but more frustrated by UPS’ decision to renege on commitments made during contract negotiations. The business had previously committed to creating 22,500 full-time jobs with existing part-time workers and 7,500 additional full-time jobs in the final years of the 2023 contract. Now, the company is instead cutting 20,000 jobs to keep its business prospects up.
“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,” Teamster General President Sean M. O’Brien said in a statement recently.
“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,” he continued.
Will the UPS Buyout Package See Any Takers?
The UPS voluntary buyout packages are expected to be met with great resistance from the Teamsters Brotherhood, with the union leader committing to fighting the offer extended to workers. “Our members cannot be bought off, and we will not allow them to be sold out. The Teamsters are prepared to fight UPS on every front with every available resource to shut down this illegal buyout program,” O’Brien explained in the released statement.
In the long term, workers who are part of the union could benefit more from extended employment that the union fought for and ratified, over whatever payout they receive from the buyout. UPS’ decision to proceed with the layoffs has been seen as an “illegal” violation of the terms of the contract, with the company attempting to eliminate workers rather than adhere to the demands that were agreed on earlier.
Some workers may be willing to accept the terms of the buyout, but UPS has a battle in store for it if it fails to work with the Teamster Brotherhood. It is unclear if their resistance will be able to lead to concrete results, but the union does not appear to be willing to go down without a fight, actively encouraging its members to reject the “illegal and insulting buyout.”
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