UPS has agreed with the Teamsters union to limit its latest driver buyout programme to a maximum of 7,500 drivers, creating a compromise that allows the initiative to proceed while addressing union concerns over scale and seniority rights.
Under the agreement, eligible drivers may receive payments of up to $150,000 through the company’s Driver Choice Program. Previously, there had been no defined cap on how many of UPS’s roughly 105,000 eligible drivers could take part. Teamsters president Sean O’Brien said the deal ensures that seniority rights and the interests of longtime union members will be respected.
The agreement gives UPS a clearer path to continue a key part of its cost-reduction strategy without reigniting a broader labour conflict. The company previously rolled out a similar programme in 2025, when about 3,000 drivers accepted offers. This year’s version triggered legal and political pushback, including a Teamsters lawsuit filed in February. Although UPS ultimately won that case, the programme still faced resistance in some regions.
As part of the new deal, UPS has also agreed not to pursue any other severance programmes during the life of the current national master contract, which runs through 31 July 2028. The arrangement comes as the company reshapes its network amid a sharp reduction in Amazon volume and plans to cut up to 30,000 operational jobs while closing 24 buildings in the first half of 2026.
