UPS is rolling back its voluntary driver buyout program across 13 states in the US central region, following mounting resistance from the International Brotherhood of Teamsters.
The decision affects a broad stretch of states from Nebraska to Ohio and comes after more than 30 local unions filed grievances against the Driver Choice Program. The Teamsters had also taken legal action in February in an effort to stop the latest round of buyouts, although the case was rejected by the US District Court of Massachusetts.
In its lawsuit, the union argued that the buyout offer violated at least six provisions of the National Master Agreement between UPS and the Teamsters. The alleged breaches included direct dealing with workers over new contract terms and the elimination of jobs in cases where UPS had committed to creating additional positions.
UPS, however, maintains that the Driver Choice Program complies with its contract obligations and said the initiative had been well received by drivers across the United States.
In a statement, the company said local Teamsters unions in the central region had expressed strong opposition and demanded that UPS stop offering the program to drivers in that part of the country. UPS added that discussions with those unions had taken place and that talks remain ongoing in some areas.
The 13 affected states form the Teamsters’ central region, which represents more than 68,000 union members employed by UPS.
Sean O’Brien, general president of the Teamsters, said the union now wants UPS to go further and dismantle the Driver Choice Program nationwide. He warned that if the company fails to do so, the union will continue to pursue grievances across the country and challenge UPS in arbitration.
UPS first announced the Driver Choice Program in January as part of efforts to improve profitability while adjusting to lower package volumes from Amazon. Under the latest version of the plan, full-time US drivers were to be offered a $150,000 separation package, with enrolment running from 13 February to 12 March and separations scheduled to begin on 26 April.
