UPS offers voluntary buyouts to drivers to cut costs and reduce excess capacity

UPS is offering voluntary buyouts to unionized delivery drivers for the first time in its history. This move is part of the company’s downsizing efforts in response to network optimization plans and decreased Amazon business. The buyouts include financial packages and other benefits for drivers who choose to leave.

The company aims to eliminate 20,000 front-line positions as part of its efforts to cut excess capacity and boost profits. This involves closing 200 sortation centers and increasing automation. Parcel volumes are facing challenges from various factors, including tariffs and reducing unprofitable Amazon business.

The voluntary severance plan has sparked backlash from the Teamsters union, which argues that UPS is reneging on its obligation to create 30,000 jobs under a contract. The union urges members to reject the buyout offer, stating that UPS is violating the contract and disrespecting hardworking Teamsters.

UPS executives expect to save over $1.2 billion this year by cutting 25 million operating hours and reducing 20,000 employees. The Teamsters are pushing back against UPS’s buyout program, demanding compliance with the existing contract and emphasizing the importance of honoring commitments over profits.

Read more at Yahoo Finance: UPS drivers to receive buyout offer as company shrinks parcel network