Teamsters union sues UPS for breach of contract
The Teamsters union has sued Sandy Springs-based UPS for alleged violations of the institutions’ bargaining agreement, spurred by its recent voluntary driver buyout offers.
The suit comes weeks after UPS announced it would launch another round of buyouts for full-time drivers as part of its multiyear effort to transform its business model, to target more profitable revenue streams and cut costs as it ramps down its relationship with Amazon.
Last summer the company announced its first, unprecedented voluntary separation program for full-time, unionized drivers.
In its Monday suit, the Teamsters have requested a temporary injunction to pause the rollout of the second round of voluntary buyouts for drivers and prevent the company from offering other programs like it until ongoing arbitration disputes over the first round of buyouts are complete.
The union alleges the company is engaging in direct bargaining with its members, superseding the national agreement.
Globally the company employed nearly 500,000 at the beginning of 2025.
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.
“For the second time in six months, UPS has proven it doesn’t care about the law, has no respect for its contract with the Teamsters, and is determined to try to screw our members out of their hard-earned money,” the union’s General President Sean M. O’Brien said in a statement.
The scope of the second round of buyouts is “much broader” than last year’s, which was only for more tenured drivers, the union said.
Grievances filed against the company over that first program are expected to enter binding arbitration next month, but a draft offer stated the window for drivers to consider the new round of buyouts was expected to end March 12, it pointed out.
In a statement in response, UPS spokesperson Genny Bowman said the company is working to “resolve the matter through the legal process” and noted it will not affect the company’s logistics operations.
UPS, the statement read, engaged with the Teamsters on the buyout offer in early January and is “disappointed” the union has opposed a program “that is entirely voluntary and would provide a great benefit to our employees, particularly as we continue to right-size our workforce.”
“The world is changing, and the rate of change is accelerating. As we navigate these changes and continue to reshape our network, our drivers appreciate having choices, including the option to make a career change or retire earlier than planned,” Bowman said.
The Teamsters’ complaint also argues the company’s other existing contract violations include terms to create at least 14,000 new full-time jobs by 2028.
“Our union will not allow UPS to inflate its earnings reports on the backs of Teamsters families,” O’Brien said.
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.
