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Teamsters union sues UPS for new driver buyout program

Teamsters Union announced on Monday that it has sued United Parcel Service for violating their national contract with the new buyout packages? offered by the delivery giant to drivers.

The two agreed to a contract ?deal covering 340,000 Teamsters-represented workers in 2023. The ?deal averted ?a strike at UPS, which has more Teamsters-represented employees than any other U.S. company.

UPS announced in January that it would close 24 facilities and cut up to 30 000 jobs as it sought to shift away from millions low-profit deliveries to its largest customer, the online retailer Amazon.com.

The union stated that "the scope of UPS’s updated buyout is much wider than the payoff offered to workers last summer when UPS advertised payouts to more 'tenured drivers approaching retirement".

As part of its network restructuring, the delivery company announced that it would offer a buyout to its drivers by July 2025. This included 20,000 job cuts and the closing 73 locations.

The union announced in a press release that the latest buyout program, called Driver Choice Program, will be announced this coming week.

According to the union, if implemented, this program would provide drivers with a lump-sum payment if they "legally commit to never working for UPS again."

Teamsters has detailed six violations in its National Master Agreement filed with the Massachusetts District Court.

UPS has failed to respond to over 57 requests for information and documents relating to the revised plan of driver buyout since late January, according to Teamsters.

UPS sent an email to UPS saying that they had engaged the Teamsters on the topic of this issue in early January. They would address the Teamsters' response via the legal channels.

UPS said in a statement that the court filing will not impact operations.

FedEx, Amazon Logistics and other UPS competitors are not unionized. They offer lower wages to delivery employees and drivers. Reporting by Aishwarya Jain, Los Angeles and Lisa Baertlein; editing by Sriraj Kaluvila.

(source: Reuters)