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UPS, Teamsters Strike Deal Limiting Driver Buyouts to 7,500

The settlement protects seniority by barring other severance through 2028.

Overview

  • UPS and the Teamsters reached a Sunday agreement that caps the Driver Choice Program, a voluntary driver buyout, at 7,500 packages nationwide.
  • Eligible long‑haul feeder and regular package car drivers can take $150,000 to retire early, with offers going out in seniority order.
  • UPS agreed not to introduce any other severance programs for the life of the current national contract, which runs through July 31, 2028.
  • The deal follows a February rollout without union consent, grievances that led UPS to withdraw the program in 13 states in March, and a court order sending the dispute to arbitration.
  • Roughly 105,000 drivers were eligible for the buyout, so the cap narrows the reach as UPS pursues broader cuts after 48,000 job losses last year and plans that could remove up to 30,000 roles in 2026.