UPS’s International Brotherhood of Teamsters filed a lawsuit on February 19, 2026, challenging the company’s Driver Choice Program (DCP), a voluntary buy‑out plan that offers a lump‑sum payment of $150,000 to eligible drivers who agree to waive legal claims and forgo reemployment with UPS.
The DCP is open to all UPS drivers regardless of length of service. In exchange for the payment, participants must sign a waiver that releases UPS from future claims and agree not to seek reemployment with the company. The program is intended to replace the earlier Driver Voluntary Severance Plan (DVSP), which paid $1,800 per year of service with a $10,000 minimum and attracted only about 3,000 opt‑ins.
UPS announced the DCP on February 11, 2026, after a failed attempt to implement the DVSP. The company said it was disappointed that the Teamsters opposed a program it described as “entirely voluntary and would provide a great benefit to our employees” and noted the lawsuit would not affect its operations.
According to the lawsuit, the union expects more than 10,000 drivers to accept the buy‑outs, while UPS plans to offer the program to 105,000 eligible employees and could cut up to 30,000 union jobs. The union argues the program violates the 2023 National Master Agreement by allowing direct dealing with workers, eliminating union jobs that the contract required UPS to create, and eroding shop‑steward rights.
The buy‑out program is part of a broader restructuring that includes a planned reduction of up to 30,000 jobs, a pullback from Amazon deliveries, and investments in automation. UPS aims to save $3 billion in 2026 through these measures, a target that could be jeopardized if the lawsuit delays or alters the buy‑out rollout.
The lawsuit alleges that UPS’s direct dealing with drivers bypasses required collective bargaining, that the program eliminates union jobs that the contract obligates UPS to create, and that it erodes the rights of union shop stewards. These claims are central to the union’s argument that the program is illegal under the master agreement.
Teamsters General President Sean M. O’Brien said the program is “illegal” and that UPS “has no respect for its contract with the Teamsters.” A UPS spokesperson responded that the company was “disappointed” the union opposed the program and reiterated that the lawsuit would not affect UPS’s operations.
The legal challenge could delay the rollout of the DCP, potentially reducing the company’s projected $3 billion savings and affecting its ability to right‑size its workforce. It also risks escalating labor tensions at a time when UPS is competing with FedEx and DHL while investing heavily in automation and higher‑margin services.
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