UPS Pushes Back Driver Buyout Deadline After Lukewarm Response

UPS is giving its package van drivers a little extra time to decide whether to take a buyout. The company’s voluntary separation program, originally set to close on July 31, will now accept applications until August 14, according to the Teamsters union.

The extension suggests the offer hasn’t drawn as many takers as UPS hoped. CEO Carol Tomé recently told investors the program has generated “a lot of interest,” but the company isn’t saying how many have signed up so far.

The offer targets long-time drivers — especially those with 25 to 40 years on the job. The payout is $1,800 for every year of service, with a $10,000 minimum. That means a driver with 27 years could walk away with $48,600, plus existing pension and healthcare benefits.

Drivers approved for the program could leave between Aug. 31 and Oct. 31, depending on staffing needs. If too many apply, seniority will decide who goes first, and others might have to wait until Feb. 1 – Mar. 31 next year.

The Teamsters aren’t happy about any of it. Union leaders say the buyout violates UPS’s 2023 master contract, which commits the company to creating 30,000 full-time jobs. They also argue the payout is too small — roughly a week’s pay for each year worked — and that any changes to pay or separation terms should be negotiated at the bargaining table.

The buyout plan is part of a larger shakeup at UPS that includes closing 200 sorting centers, investing heavily in automation, consolidating facilities, and cutting 20,000 front-line jobs. The company is also scaling back its business with Amazon, its largest customer, by about half.