Dive Transient:
- UPS is providing voluntary buyouts to its full-time U.S. drivers amounting to $1,800 per yr of service, with a minimal payout of $10,000, in line with an announcement from the provider Friday.
- drivers should apply for this system between July 18 and July 31, in line with a UPS worker communication considered by Provide Chain Dive. Candidates shall be thought of for separation dates between Aug. 31 and Oct. 31 “primarily based on the native wants of the enterprise.”
- “If the utmost variety of purposes is exceeded, approvals shall be granted in seniority order,” the communication mentioned. “Further purposes could also be thought of for separation dates between Feb. 1, 2026, and March 31, 2026.”
Dive Perception:
The endeavor, referred to as the Driver Voluntary Separation Program, is the primary in UPS’ historical past for supply drivers. The monetary incentive accessible via this system is along with earned retirement advantages like pension and healthcare, per UPS.
Phrase of this system unfold on July 3, when the Worldwide Brotherhood of Teamsters union mentioned UPS’ buyout plan was in movement. The Teamsters signify greater than 300,000 UPS workers below a five-year contract reached in 2023.
“Our members can’t be purchased off and we is not going to permit them to be offered out,” Teamsters Common President Sean O’Brien mentioned within the union’s announcement. “The Teamsters are ready to struggle UPS on each entrance with each accessible useful resource to close down this unlawful buyout program.”
The union urged members to reject the buyout provides in a LinkedIn put up on Friday. UPS didn’t specify what would occur if a lower-than-expected variety of drivers utilized for this system.
UPS is enacting the buyout program within the midst of a serious community overhaul to spice up profitability, which is able to characteristic a number of facility closures and an over 50% quantity discount from Amazon, its high buyer. The initiative additionally comes after the provider revealed plans in April to minimize roughly 20,000 U.S. positions this yr.
“As we work via our community reconfiguration, we stay steadfast in our dedication to offering our prospects with the dependable, industry-leading service they anticipate from UPS,” the corporate mentioned in Friday’s announcement.
