Teamsters pushed to pause UPS driver buyouts. A judge disagreed.
The Teamsters union’s effort to halt Sandy Springs-based UPS’ second round of driver buyout offers was rejected by a federal judge, but the fight will continue in arbitration.
The union has an ongoing dispute over UPS’ unprecedented voluntary separation program for full-time, unionized drivers, which began last summer.
About 3,000 of UPS’ eligible 115,000 drivers took the company up on the first offer, according to court documents, which included $1,800 in severance per year of service and a $10,000 minimum payout.
Last month, UPS went ahead and announced a second round of buyouts, even though the grievances are pending and set to be presented before the National Grievance Committee in March. If no decision is reached there, the issue will advance to formal arbitration.
The Teamsters filed a lawsuit earlier this month seeking to pause the second round of buyouts, pending that process.
But in a Friday order, a federal judge denied the union’s request and said arbitration remained the best venue for the dispute.
UPS said in a statement it is “pleased” with the ruling and intends “to move forward with our Driver Choice Program, as originally planned.”
“Under the program, our full‑time U.S. drivers will have the choice to voluntarily leave UPS with a $150,000 separation payment, in addition to any retirement benefits earned, including pension and healthcare. We will share details about the program with our drivers over the coming days,” the statement reads.
The Teamsters did not immediately respond to a request for comment.
The move to shrink its driver workforce is part of UPS’ multiyear effort to transform its business model, target more profitable revenue streams and cut costs as it ramps down its relationship with Amazon, its biggest customer.
In total, UPS was down 48,000 positions in 2025, including 15,000 fewer seasonal positions than the year prior, executives told investors last month.
It closed 93 buildings and has plans to close at least 24 more in 2026 — including its Atlanta Hub on Marvin Miller Drive near Fulton Industrial Boulevard.
Roughly 80% of the company’s 370,000 U.S. employees are represented by the Teamsters, and all unionized employees are offered other positions when their buildings are impacted.
About the Author
As a business reporter, Emma Hurt leads coverage of the Atlanta airport, Delta Air Lines, UPS, Norfolk Southern and other travel and logistics companies. Prior to the Atlanta Journal-Constitution she worked as an editor and Atlanta reporter for Axios, a politics reporter for WABE News and a business reporter for the Arkansas Democrat-Gazette.
