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Judge Lets UPS Proceed With Driver Buyouts After Teamsters’ Injunction Bid Fails

The judge ruled arbitration is an adequate remedy for any contract violations, opening the door to the program’s rollout.

Overview

  • Chief U.S. District Judge Denise J. Casper on Feb. 20 denied the Teamsters’ request for an injunction, allowing UPS’s voluntary Driver Choice Program to proceed.
  • UPS says about 105,000 full-time drivers are eligible to leave with a $150,000 lump-sum payment on top of earned pension and health benefits.
  • The company planned an application window from Feb. 13 to March 12 with separations beginning around April 26, and it says program details will reach drivers in the coming days.
  • The court emphasized that arbitration can address any contract disputes, including potential reinstatement and back pay, and noted the program offers an alternative to involuntary layoffs.
  • The union objects to a required waiver of representation and estimates more than 10,000 drivers could accept as UPS trims costs tied to softer demand and reduced Amazon volume.