UPS is seeking to block a Teamsters union complaint over its plan to offer $150,000 voluntary buyouts to package car drivers. The company argues that any concerns can be adequately addressed by arbitration provisions in the existing contract. The proposed buyouts are part of a major cost-cutting initiative aimed at reducing parcel workers and consolidating facilities due to slower market demand and a 50% cut in business with Amazon, its largest customer.
['The Teamsters union represents about 347,000 delivery and warehouse workers and has sued UPS over the pending buyouts, alleging they violate the national contract by directly dealing with workers over new contracts. The union also argues that an arbitrator would have no power to create a remedy for any employees that elected to resign under a separation program before a decision on whether the buyout was permissible.', ["Initial plans called for UPS to send about 105,000 employees information about the new Driver's Choice Program on February 11, with a one-month window for workers to apply for the separation package in exchange for resigning. Voluntary separations are scheduled to begin at the end of April. The company is offering a $150,000 payout, regardless of seniority, on top of previously earned healthcare and retirement benefits.", ["The proposed buyouts could create internal union turmoil if rank-and-file members are interested in resigning against the leadership's objections. This could lead to a schism within the union as younger drivers may feel they have missed out on an opportunity for a significant payout.", ["UPS is targeting a younger audience with the buyout offer, which could drive a wedge between unions that want to grow membership and those who are willing to leave in exchange for a large sum of money. The company's strategy may also undermine employment security guarantees.", ["The Teamsters leadership needs to accept some responsibility for UPS's situation because the wage and benefit gains won in the 2023 contract made the company less competitive versus FedEx, Amazon, and other carriers that pay drivers far less. This has led to a significant cost of labor for UPS.", ['UPS is reducing parcel workers and consolidating facilities due to slower market demand and a 50% cut in business with Amazon. The company plans to eliminate another 30,000 jobs this year and close 24 sort facilities. The buyout offer may help reduce the number of layoffs for remaining drivers.', ['The Driver Choice Program provides eligible drivers the opportunity to leave the company with a significant monetary benefit. By offering this program, UPS hopes to reduce the need for involuntary layoffs for drivers later in the year.', ['Courts should not intervene in a labor dispute where a meaningful grievance and arbitration process exists. Any alleged harm can be corrected through monetary damages, reinstatement, or voiding the voluntary separation if warranted under the contract.', ["The proposed buyouts are part of UPS's broader strategy to adjust staffing levels and reduce costs before the summer vacation season and the holiday peak shipping season."]]]]]]]]]
The proposed buyouts could create internal union turmoil if rank-and-file members are interested in resigning against the leadership's objections.
