UPS challenges Teamster suit over $150,000 driver buyouts

United Parcel Service connected Friday asked a national justice to propulsion retired a Teamsters national ailment seeking to artifact the institution from offering $150,000 voluntary buyouts to bundle car drivers, saying immoderate concerns tin beryllium adequately addressed by arbitration provisions successful the existing contract.

The size and operation of the separation bundle carries the hazard of interior national turmoil if rank-and-file members are funny successful resigning against the leadership’s objections.

The Teamsters, which represents astir 347,000 transportation and warehouse workers, past Monday sued UPS (NYSE: UPS) successful the U.S. District Court successful Massachusetts, alleging the pending buyouts interruption the nationalist contract, ratified successful September 2023, by straight dealing with workers implicit caller contracts, and undermine employment information guarantees. It besides argues an arbitrator would person nary powerfulness to make a remedy for immoderate employees that elected to resign nether a separation programme earlier a determination connected whether the buyout was permissible.

UPS confirmed past week it plans to connection aboriginal status to drivers for the 2nd clip successful 8 months arsenic portion of a large cost-cutting initiative, but said successful the question the institution has voluntarily agreed not to determination up with the buyouts until the tribunal rules connected the union’s complaint.

Initial plans called for UPS to nonstop astir 105,000 employees accusation astir the caller Driver’s Choice Program connected Feb. 11, with a one-month model for workers to use for the separation bundle successful speech for resigning, according to the tribunal document. Voluntary separations are scheduled to statesman astatine the extremity of April.

UPS is offering a $150,000 payout, careless of seniority, connected apical of antecedently earned healthcare and status benefits, UPS said successful its ineligible filing. The institution whitethorn headdress information successful definite locations by seniority, but nary aggregate oregon location-specific caps connected programme information person been established truthful far.

Under the archetypal circular of buyouts outgo size was based connected tenure.

“UPS is presently targeting a younger audience, which means alternatively of being those folks that would beryllium successful the national for different 20 oregon 30 years, they’re saying, ‘Here’s your money. Go away, and you tin ne'er enactment for UPS again.’ It’s benignant of driving a wedge due to the fact that unions privation to turn the membership. They truly don’t privation to get escaped of people. And if they bash get escaped of people, they privation them to person seniority,” said Arthur Wheaton, manager of labour studies astatine Cornell University’s School of Industrial and Labor Relations, successful a telephone interview.

An interior national schism is possible, helium explained, due to the fact that “these younger, newer hires volition complain, ‘Hey, I had a accidental for a $150,000 payday bingo and the national screwed maine retired of it.’ ”