Teamsters Secure Comprehensive UPS Settlement on Driver Severance Packages

Rowan Ashford

Published: April 6, 2026 5:12 AM ET

Teamsters Secure Comprehensive UPS Settlement on Driver Severance Packages

After extensive discussions, United Parcel Service (UPS) has reached a comprehensive settlement with the Teamsters National Negotiating Committee regarding driver severance packages. This agreement comes following UPS’s unilateral decision to implement driver buyouts, which sparked a wave of grievances by the Teamsters union.

Background of Negotiations

UPS’s Driver Choice Program (DCP) was announced in February without prior agreement from the Teamsters, leading to significant pushback. The union filed grievances that successfully compelled UPS to withdraw the DCP in 13 states in March. Consequently, negotiations resumed, resulting in the current settlement.

Key Terms of the Settlement

UPS will limit severance offers to 7,500 drivers across various job classifications nationwide.
Drivers opting for early retirement will receive a severance payment of $150,000.
Severance offers will be prioritized for long-haul feeder drivers and Regular Package Car Drivers based on seniority.
No other severance programs can be pursued by UPS until the current Teamsters National Master Agreement expires on July 31, 2028.

Union Leadership Response

Teamsters General President Sean M. O’Brien emphasized the importance of this agreement, stating that UPS did not have the right to offer buyouts unilaterally. He highlighted the significance of the settlement in maintaining the rights and seniority of the union’s drivers. “This agreement allows lifelong Teamsters to have the first right of refusal on severance agreements,” he affirmed.

Impact on Teamsters Members

O’Brien remarked that the settlement serves as a reminder of the hard work and dedication Teamsters have contributed to UPS over the past century. The agreement seeks to uphold the competitive stance of the company while also protecting members’ rights and contract integrity.

About the Teamsters

The International Brotherhood of Teamsters, established in 1903, advocates for 1.3 million workers across the U.S., Canada, and Puerto Rico. The union remains committed to protecting the rights and welfare of its members.

For further information, visit Filmogaz.com and follow the Teamsters on social media platforms.