UPS and the International Union have reached a negotiated settlement over the company’s Driver Choice Program. Under the agreement, drivers will be offered a $150,000 buyout by seniority order in every region. The agreement also requires UPS to fill 30,000 new full-time jobs.

UPS is moving to cut the workforce this year through attrition, layoffs, and buyouts as part of its move to reduce Amazon volume. 

One concern is that UPS would use declining volume as an excuse to get out from its obligation under the contract to create new full-time jobs. 

The company used this argument and legal stonewalling tactics to delay for years creating contractually-required full-time jobs following the 1997 strike. 

For months, management has insisted it had the right to unilaterally implement a buyout program under any conditions the company set

The International Union demanded that UPS come to the negotiating table as part of the union’s efforts to protect jobs. 

The company’s refusal to negotiate blocked the buyout and frustrated and divided members. 

Over the weekend, UPS finally came to the table and negotiated an agreement.

Under the agreement, package car drivers and long haul feeder drivers will be offered the buyout by seniority order. UPS would not offer the buyout to full-time inside and Article 22.3 combo employees,

The agreement also requires UPS to fill at least 22,500 new permanent full-time jobs and 7,500 new permanent full-time 22.3 combo jobs nationwide over the life of the contract. 

The first 1,000 of these 7,500 22.3 combo jobs must be created by August 1 of this year, with 3,000 due next year, and 3,500 more created by July 31 2028.