The shipping giant United Parcel Service announced Sunday it has resolved a labor dispute with the International Brotherhood of Teamsters regarding limitations on driver severance packages, restricting the offers to 7,500 employees.
The settlement establishes early retirement compensation at $150,000 per eligible driver.
The Teamsters union had challenged UPS’s Driver Choice Program, claiming the company launched the initiative without proper contract negotiations, violating terms of their 2023 labor agreement. Union representatives maintained that contract language prevents UPS from making individual deals with drivers without union involvement.
Earlier this year in January, UPS revealed plans to eliminate as many as 30,000 positions and close 24 operational centers as part of a strategic shift away from handling millions of low-margin shipments for Amazon.com, its biggest client.
