UPS Offers Drivers Buyout Plan
How much money would it take you to jump without a parachute? That is the question being asked of the over 25,000 full-time drivers for UPS, one of the (if not simply “the”) largest freight carrier(s) in the world.
Details
The United Parcel Service is hoping to undergo some “network reconfiguration” as it lets go of drivers, but is still beholden to labor contracts negotiated in 2023. To undergo the reconstruction, UPS is offering a settlement to its full-time drivers of a severance package of $1,800 per year of full-time service, with a minimum of $10,000. The package also includes any due retirement benefits such as accumulated pension and healthcare benefits.
Needless to say, this is a very expensive deal on behalf of UPS. If every driver took the offer, they would be out a minimum of $250 million. Their plans for reorganizing the company are extremely vague, but clearly they must be gargantuan if they are willing to part with so much money in order to make it work.
The Teamsters union representing the drivers at UPS imply that if a deal is too good to be true, it likely is, and posts on Facebook imploring its drivers to reject the voluntary severance package.
“UPS wants to shovel more cash to its executives and buy back even more of its own stock — all off the backs of hardworking Teamsters. UPS is violating our national contract. All full-time members are urged to reject this sham buyout proposal. We will not be sold out or sold short.”
The Teamsters General President Sean M. O’Brien went a step even further beyond, stating that the buyout plan was “illegal.” We do not know the full ramifications of the contract between the Teamsters and UPS, but if what O’Brien says is true, there are likely to be court battles over this.
Conclusion
What could UPS have planned that would justify such a massive investment of settling union negotiation contracts with its employees? Are they hoping to make the transition to automatic vehicles, or perhaps even drone delivery? Only the future can tell.
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