On Friday, Feb. 20, a federal choose within the District Courtroom in Massachusetts gave UPS the inexperienced mild to implement its Driver Selection Program, a lot to the supply firm’s reduction.
UPS secured a key authorized victory in its effort to reshape its workforce. The choose cleared the best way for the corporate to maneuver ahead with its $150,000 separation fee, provided to eligible drivers on prime of any earned retirement advantages, together with pension and well being care.
As a part of the buyout, UPS drivers can voluntarily go away the corporate in alternate for a lump-sum fee, offered they waive their proper to union illustration. The corporate, in an emailed assertion shared with TheStreet, mentioned it would share particulars with drivers within the coming days.
Teamsters, the union representing UPS drivers, expects greater than 10,000 drivers to take the buyout, Reuters reported. The UPS spokesperson didn’t affirm the quantity.
“We do not know how many drivers are interested in taking the offer — any estimate would be speculation at this point,” the spokesperson mentioned.
UPS inventory is up 16% 12 months so far.
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UPS’ turning level after authorized pushback
The choice marks a major shift from the authorized roadblock UPS encountered earlier this month. In January, the corporate revealed 30,000 deliberate job reductions throughout its This fall 2025 earnings name, as a part of a technique to chop Amazon quantity.
In a transfer to trim its workforce for the second time (the corporate introduced 48,000 job eliminations in October 2025), UPS launched a Driver Selection Program, beneath which it could supply drivers a voluntary exit in alternate for a predetermined severance bundle.
Extra Employment:
- Layoffs surge simply weeks into the brand new 12 months
- UPS’ plan to chop 30,000 jobs hits authorized roadblock amid Amazon pivot
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Nevertheless, the Worldwide Brotherhood of Teamsters, one of many largest unions for truck drivers throughout the nation, sued UPS on February 9, calling it an unlawful buyout scheme and demanding a halt to the corporate’s plan to implement cuts for unionized drivers.
You’ll be able to learn extra concerning the court docket case I coated earlier right here.
Teamsters argued that the job reductions violate the 2023 contract, which obligates UPS to extend employment.
However on Friday, Feb. 20, Chief U.S. District Choose Denise Casper dismissed the union’s request, saying its claims have been unfounded. The dispute will probably be resolved by an arbitrator, who may have the ability to reinstate any worker whose separation is deemed improper.
The choose additionally famous that this program harms drivers much less, because it offers them an possibility, in contrast with workforce discount which will happen via involuntary layoffs.
The choice comes at a vital time for the 118-year-old transport big, because it tries to stability comfortable bundle demand, value pressures, and automation investments.
In December 2025, UPS reportedly invested $120 million in 400 Pickle Robots to unload vans, as a part of its $9 billion plan to automate its operations and improve earnings by lowering labor prices, Bloomberg reported.
Associated: Walgreens widens job cuts amid retailer closures
