The Teamsters are suing UPS over the logistics giant’s planned rollout of another voluntary buyout program for full-time drivers, alleging that the decision constitutes a violation of the national contract agreed between both parties in 2023.

The emergency motion included both a temporary restraining order and preliminary injunction, preventing the logistics giant from implementing any such separation program until an arbitrator rules on the alleged violations. The union filed the complaint Monday in a Massachusetts federal court.

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The Teamsters argue the program violates six articles of the five-year union contract because it wasn’t negotiated and any program that changes the terms of employment, such as compensation and separation, must be bargained with the union.

According to a UPS spokesperson, the company engaged with the Teamsters on the buyout program in early January.

UPS first acknowledged it would offer the voluntary buyout during a January earnings call, saying it would be a tool to assist the company in reducing up to 30,000 employees.

The company has not publicly given details of the scope of the program, or indicated when buyouts would start taking place.

The Teamsters said in a Monday statement that UPS was set to announce the program this week, noting that the company would give drivers a one-time lump sum payment if they quit.

According to a document sent from UPS to the drivers that was filed with the complaint, drivers would receive a separation package of $125,000, in addition to any pension and healthcare benefits earned. A second document, a letter to Teamsters president Sean O’Brien dated Jan. 30, indicated the separation package was increased to $150,000.

Drivers could apply for the program through March 12. Most separations would take place April 12, the first document said.

“We are aware of the Teamsters’ response to the voluntary separation program we planned to offer our U.S. full-time drivers and are working to resolve the matter through the legal process,” said a UPS spokesperson in a statement. “This does not affect our operations, and we will continue to provide the reliable service our customers expect from UPS.”

UPS debuted a buyout program for its full-time drivers—all of which are represented by the Teamsters—last summer. That separation program was launched months after the company had committed to laying off 20,000 employees. UPS has not disclosed how many drivers took the voluntary separation.

The headcount reduction across 2025 and 2026 comes as UPS has been downsizing its Amazon volumes, cutting out 1 million Amazon parcels flowing through its network per day since the start of last year.

That move was deliberately designed to cut out less profitable e-commerce volumes through its network, and resulted in an 8.6 percent decline in average daily domestic packages for the year.

In total, UPS’s goal to cut Amazon’s volumes with the company 50 percent is set to be complete by June 30.

The draft document filed by the Teamsters also indicated that the staff adjustments also are related to the transitioning of some last-mile Ground Saver packages back to the U.S. Postal Service (USPS).

UPS anticipates additional driver layoffs beginning in early 2026 because of the network changes, the document said.

“The world is changing, and the rate of change is accelerating. As we navigate these changes and continue to reshape our network, our drivers appreciate having choices, including the option to make a career change or retire earlier than planned,” the UPS spokesperson noted, saying the company was “disappointed” in the union’s opposition.

UPS has not said how many drivers it expects to accept the voluntary separation if the arbitrator rules in its favor. In the recent earnings call, chief financial officer Brian Dykes said driver staffing “will align with our new delivery volume level.”

The Teamsters say they issued more than 57 requests for information and documents to UPS related to the driver buyout, claiming that UPS CEO Carol Tomé and other corporate executives ignored the requests.

“If Carol Tomé has buyer’s remorse for the historic, legally binding contract she signed with rank-and-file Teamsters, that’s her problem. Our union will not allow UPS to inflate its earnings reports on the backs of Teamsters families,” said O’Brien in a statement. “We’ve given too much to grow and sustain this company, and we will not be sold short. UPS must dismantle its illegal buyout program and resolve its contract violations in the courts, or the Teamsters will see this greedy corporation in the streets.”

Under last year’s buyout terms, UPS offered full-time U.S. drivers payouts of $1,800 per year of service, with a minimum offer of $10,000. The courier had geared the program to its 10,000 full-time drivers with 25 years of service.