UPS Offers Incentive Program Amid Network Overhaul

Atlanta, Georgia – UPS has introduced its first-ever Driver Voluntary Separation Program, providing financial incentives to delivery drivers as the company seeks to streamline its operations. The program offers a payout of $1,800 for each year of service, with a minimum total of $10,000.

The announcement was made on July 3, following widespread discussions about the initiative among UPS employees. The financial incentive is in addition to existing retirement benefits, such as pension and healthcare, according to UPS.

Sean O’Brien, General President of the International Brotherhood of Teamsters, which represents over 300,000 UPS employees, condemned the buyout offer. “Our members cannot be bought off and we will not allow them to be sold out,” he stated in a union announcement. O’Brien emphasized that the Teamsters are ready to challenge UPS vigorously regarding the program.

The union also encouraged its members to turn down the buyout offers. While UPS has not disclosed what will happen if the response to the program is lower than anticipated, the initiative is part of a significant network overhaul aimed at increasing profitability.

UPS’s network reconfiguration strategy comes after the company revealed plans to expand operations with Amazon, its largest customer. “As we work through our network reconfiguration, we remain steadfast in our commitment to providing our customers with the reliable, industry-leading service they expect from UPS,” the company stated in its announcement.