Teamsters Union Sues UPS to Block Buyout Offer to Delivery Drivers

Union claims UPS's voluntary separation program violates their national contract

Published on Feb. 10, 2026

Got story updates? Submit your updates here. ›

The Teamsters union has filed an emergency motion in federal court to stop UPS from initiating a second voluntary buyout program for package car drivers, arguing that the effort to eliminate jobs violates their national contract. The union claims the "Driver Choice" program UPS plans to announce this week was not negotiated and any program that changes the terms of employment, such as compensation and separation, must be bargained with the union.

Why it matters

This dispute highlights the ongoing tensions between UPS and the Teamsters union as the company looks to reshape its network and workforce. The Teamsters argue UPS is violating their contract by unilaterally offering buyouts to drivers, while UPS says the voluntary program provides choices for employees as the company adapts to changing market conditions.

The details

According to the lawsuit, UPS notified the Teamsters it plans to announce the "Driver Choice" voluntary separation program this week. The Teamsters claim the program violates the national master contract in at least six ways, including direct dealing with workers over new contracts and eliminating jobs when obligated to create more positions. UPS says it has been engaged with the Teamsters on a voluntary separation plan since early January.

  • UPS offered a similar buyout program to delivery drivers last summer, which the Teamsters loudly objected to.
  • Multiple Teamsters local unions have filed grievances against UPS over the contract violations associated with last year's voluntary separation program, which are expected to enter binding arbitration next month.

The players

Teamsters Union

The labor union that represents about 338,000 UPS drivers and has filed an emergency motion to stop UPS from initiating a second voluntary buyout program.

UPS

The Atlanta-based shipping and logistics company that is planning a second voluntary buyout program for delivery drivers as part of an effort to save $3 billion by cutting an additional 30,000 frontline jobs and two dozen facilities.

Sean M. O'Brien

Teamsters General President who said UPS "has proven it doesn't care about the law, has no respect for its contract with the Teamsters, and is determined to try to screw our members out of their hard-earned money."

Fred Zuckerman

Teamsters General Secretary-Treasurer who said "If UPS is allowed to move forward with this illegal program, it would cause irrevocable harm to our union and a majority of our hardworking members."

Carol Tomé

UPS CEO who the Teamsters claim has "buyer's remorse" over the "historic, legally binding contract" signed with the union.

Got photos? Submit your photos here. ›

What they’re saying

“For the second time in six months, UPS has proven it doesn't care about the law, has no respect for its contract with the Teamsters, and is determined to try to screw our members out of their hard-earned money.”

— Sean M. O'Brien, Teamsters General President (FreightWaves)

“If UPS is allowed to move forward with this illegal program, it would cause irrevocable harm to our union and a majority of our hardworking members.”

— Fred Zuckerman, Teamsters General Secretary-Treasurer (FreightWaves)

What’s next

The judge in the case will decide on whether or not to grant the Teamsters' request for a temporary restraining order to prevent UPS from rolling out the "Driver Choice" buyout program.

The takeaway

This dispute underscores the ongoing tensions between UPS and the Teamsters union as the company looks to reshape its workforce and network. The Teamsters argue UPS is violating their contract, while UPS says the voluntary program provides choices for employees. The outcome of this legal battle could have significant implications for the future of UPS's relationship with its unionized workforce.