Teamsters Secure Robust UPS Agreement on Driver Severance Packages

Bassyonni

Published: April 6, 2026 5:59 AM ET

Teamsters Secure Robust UPS Agreement on Driver Severance Packages

The recent settlement reached between the Teamsters Union and United Parcel Service (UPS) marks a significant achievement for drivers regarding severance packages. After extensive negotiations and pressures, UPS has agreed to cap severance offers while maintaining the seniority rights of Teamsters drivers.

Key Settlement Terms

Under the new agreement, UPS is limited in offering severance packages to a total of 7,500 drivers nationwide. This includes:

Severance payments of $150,000 for eligible drivers opting for early retirement.
Opportunities extended primarily to long-haul feeder drivers and Regular Package Car Drivers.
Offers based on seniority across all regions in the country.

Background and Negotiation Pressure

The negotiations arose after UPS’s implementation of the Driver Choice Program without union consent. Starting in February, this led to national grievances filed against the company. By March, UPS withdrew the program in 13 states and agreed to return to the bargaining table.

Teamsters General President Sean M. O’Brien highlighted the importance of this agreement. He emphasized the commitment to protecting the rights of Teamsters drivers and ensuring seniority is honored. The settlement also secures that UPS will refrain from offering additional severance programs for the duration of the current Teamsters National Master Agreement, which extends until July 31, 2028.

Impact on Teamsters Members

This agreement is designed to honor the contributions of Teamsters members, many of whom have dedicated years to UPS’s success. O’Brien noted, “The Teamsters never seek to undermine UPS’s competitiveness. However, we will stand firm against violations of our contracts and members’ rights.”

The International Brotherhood of Teamsters, founded in 1903, represents approximately 1.3 million working individuals throughout the U.S., Canada, and Puerto Rico. This settlement reinforces the union’s ongoing commitment to worker rights and union solidarity.

For more updates on the Teamsters and their advocacy efforts, visit El-Balad.