INDIANA – Package delivery giant UPS announced Friday, July 18, a new “US Driver Voluntary Severance Plan (DVSP),” offering financial incentives to full-time drivers who choose to resign voluntarily. This move comes as the company undertakes what it describes as “the largest network reconfiguration in UPS history.”
The DVSP aims to provide drivers with $1,800 for each year of service at UPS, with a minimum payout of $10,000. For example, a driver with 27 years of service could receive $48,600, while a driver with five years of service would receive the minimum of $10,000. These financial packages are in addition to earned retirement benefits, including pension and healthcare.
UPS emphasized that the program is entirely voluntary, and drivers are encouraged to make the best decision for their families. “For more than 100 years, we’ve had a productive relationship with the Teamsters, and we will continue to do so,” UPS stated in its DVSP announcement. “We remain committed to the agreements we reached in 2023, as part of our contract negotiations.”
Teamsters Advise Drivers to Reject Buyout Offer
In a swift response, the International Brotherhood of Teamsters, which represents 300,000 UPS workers, advised its members to reject the severance offer. Teamsters Local 512 issued a strong statement: “Let us be clear: our jobs are NOT FOR SALE! This so-called ‘offer’ is not only an insult to our hardworking members, it’s a slap in the face. We stand united and will follow the guidance of the IBT.”
The announcement signals a new phase in UPS’s operational overhaul, as the company seeks to adapt its workforce to the evolving demands of its restructured network. The effectiveness of the voluntary severance plan will likely depend on individual driver decisions and the ongoing dialogue between UPS and the Teamsters.
