UPS withdraws latest driver buyout scheme in central region states

March 24, 2026 2:44 PM EDT

A person walks by United Parcel Service (UPS) trailers at a facility in Brooklyn, New York City, U.S., May 9, 2022. REUTERS/Andrew Kelly

March 24 (Reuters) - United ‌Parcel ​Service ​notified the International Brotherhood of Teamsters that it was withdrawing its ‌latest driver buyout scheme in central ⁠region states, the union said on Tuesday.

The ‌move comes a month ‌after the delivery giant announced its plans to proceed with offering $150,000 buyout packages ​to its drivers after a federal judge rejected the union's bid to ⁠block its workforce-cutting program on contract violation concerns.

On February ​9, Teamsters sued UPS for its January 27 announcement plan to ​cut up to 30,000 ‌jobs and shut 24 facilities as it moves away from ⁠millions of low-profit deliveries for Amazon.com, its largest customer.

"The latest buyout, which the company ⁠calls the Driver Choice Program (DCP), had asked drivers ​to accept a one-time lump sum payment in exchange for legally committing to never work for ‌UPS again," Teamsters said on Tuesday.

The Teamsters Central Region encompasses ‌13 U.S. states and is home ⁠to more than ‌68,000 rank-and-file union ​represented UPS employees.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shailesh ‌Kuber)



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