UPS averted a Tuesday morning strike by its union employees at its largest air cargo hub, Worldport, in Louisville, Ky., as well as facilities in six other states.
According to a press release from the Teamsters, which represent roughly 330,000 workers at the nation’s largest courier, the union secured some settlements on outstanding grievances, alongside a first contract for newly organized workers.
The strikes were set to take place across the Chicago area, with picket lines extended to California, Massachusetts, Pennsylvania, Georgia and Ohio if the parties did not come to the agreements.
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At Worldport, the labor group’s strike threat pushed UPS to resolve grievances affecting workers at the cargo hubs aircraft maintenance distribution center.
The Teamsters alleged that the package delivery company had ignored or delayed answering complaints that they were regularly diverting airport distribution services to workers paid a lower rate. UPS agreed to a new settlement that solved a jurisdictional dispute between two Teamsters local branches at the maintenance center.
In Chicago, the union secured a first contract for its administrative and specialist workers at Teamsters Local 705, with the new deal earning the employees the top wage rate for their respective job duties.
UPS also settled concerns regarding seniority issues and workplace safety at Teamsters Local 20 in Toledo, Ohio and Teamsters Local 455 in Denver.
“UPS and the Teamsters have resolved local matters as part of our normal, established processes for handling disputes,” said a UPS spokesperson. “We remain committed to delivering reliable service to our customers without disruption. The company also continues to adhere to the agreements made during our contract negotiations in 2023.”
However, the settlements have not solved all the Teamsters’ criticisms. Union representatives still counter that the company has not met its contractual obligations to deliver 28,000 vehicles equipped with air conditioning, saying UPS has only rolled out 10 percent of the required fleet so far. Additionally, the Teamsters say the delivery company has failed to create the 22,500 new full-time positions agreed to in the deal and has not paid penalty wages for overworking drivers.
Last month, UPS offered full-time union drivers a voluntary buyout, with the labor group crying foul that it violated their five-year national contract signed in 2023. In the Tuesday morning release, the Teamsters called UPS’ recent decision “illegal” and a “profit-fueled scheme.”
UPS extended the deadline for drivers to apply for severance of their own, according to a Friday Facebook post from the Teamsters.
While drivers initially had until July 31 to accept the buyout offers, which would over $1,800 for each year of service, the deadline has been pushed back to Aug. 14, according to a report from FreightWaves. Minimum payouts would be $10,000.
In a July earnings call, two days ahead of the initial deadline, CEO Carol Tomé said UPS was still in the “early days” of the buyout, saying “it’s progressing as we would expect.”
UPS has not revealed how many employees have signed up for the early buyouts. The severance offers are another lever for the company to cut $3.5 billion in costs through 2028, alongside a current commitment to cut 20,000 jobs this year. The company’s wider network overhaul resulted in the closures of 74 site in the first half, with UPS most recently closing a parcel in Pocahontas, Ark. on Aug 8. The courier will also close a facility in Wilmington, N.C. on Sept. 23.
Despite the planned layoffs and consolidation, Tomé said in the call that attrition rate was lower than anticipated in the first half. Nando Cesarone, president of the U.S. region at UPS, said in the call that “thousands of drivers” are entertaining the buyout package.
Buyout applicants will be considered for separation dates between Aug. 31 and Oct. 31, depending on the local needs, UPS said, while some may be considered dates between Feb. 1 and March 31.
The Teamsters have largely panned the buyouts on social media, claiming that the pay is too low and urging union members not to take the severance offering.
As the Teamsters employees rail against the UPS buyouts, nearly 10,500 employees at the U.S. Postal Service (USPS) accepted a voluntary early retirement offer, fulfilling a cost-cutting endeavor set earlier this year.
At USPS, employees that worked as mail handlers, clerks, motor vehicle service professionals, maintenance and IT professionals are set to receive a $15,000 payout. Those separations went into effect April 30.
The total buyouts surpassed initial goals set in March, when the USPS committed to reducing its headcount by 10,000 in collaboration with the Trump administration’s Department of Government Efficiency (DOGE) and the General Services Administration.
The Postal Service incurred a $3.1 billion net loss in the third quarter, the final quarter before new Postmaster General David Steiner assumed the role. The agency has sought to cut costs after bleeding billions in cash in recent years, leading to the buyouts.
