Teamsters Urge Judge to Block UPS Buyout Offers to Drivers

Union argues $150,000 buyouts violate labor contract, could lead to chaos if accepted by thousands of workers

Published on Feb. 25, 2026

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The International Brotherhood of Teamsters has asked a federal judge in Boston to block UPS from offering $150,000 buyouts to over 105,000 eligible drivers, arguing the plan was initiated without negotiations and would violate the union's 2023 labor contract. The Teamsters estimate over 10,000 drivers could accept the buyouts, leaving their jobs in a way that would be difficult for an arbitrator to remedy later.

Why it matters

The dispute highlights tensions between UPS and its largest union as the delivery giant looks to cut costs and workforce amid declining package volumes. The Teamsters argue the buyouts undermine their collective bargaining agreement and could lead to widespread disruption if many drivers depart.

The details

UPS announced plans in January to cut up to 30,000 jobs and close 24 facilities as it seeks to reduce low-profit deliveries for Amazon. The company launched a prior buyout program last year that 3,000 drivers accepted, prompting UPS to increase the offer to $150,000 this time to get more participation. The Teamsters argue the new buyout plan was initiated without negotiation and violates contract provisions barring such individual agreements with drivers.

  • On January 27, UPS announced plans to cut up to 30,000 jobs and shut 24 facilities.
  • On February 9, the Teamsters union sued UPS over the planned buyout program.

The players

International Brotherhood of Teamsters

The labor union representing over 320,000 UPS workers, including drivers.

United Parcel Service (UPS)

The major delivery company that is seeking to cut costs and its workforce amid declining package volumes.

Michael Feinberg

An attorney representing the Teamsters union in the legal dispute with UPS.

Denise Casper

The Chief U.S. District Judge in Boston presiding over the case.

James Nelson

Counsel representing UPS in the legal dispute with the Teamsters union.

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What they’re saying

“We're seeking to give people an opportunity to leave if they like to in exchange for substantial financial consideration.”

— James Nelson, UPS Counsel (marketscreener.com)

“It's going to be chaotic if not impossible for the arbitrator to remedy that situation.”

— Michael Feinberg, Teamsters Attorney (marketscreener.com)

What’s next

Judge Casper is expected to issue a decision on whether to block the UPS buyout program in the near future.

The takeaway

This dispute reflects the ongoing tensions between UPS and its largest union as the company seeks to cut costs and reshape its workforce. The Teamsters argue the buyouts undermine their collective bargaining power, while UPS contends the offers provide an opportunity for workers to voluntarily leave with substantial compensation.