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Industry observers say UPS seeks to improve its policy by purchasing employees, but it can create risks of service and conflict with the International Brotherhood of the Teamsters Union.
The giant is among the voluntary purchasing programs for full -time drivers, represented by the manufacturers team, and the US operations managers in the United States because the company is pursuing $ 3.5 billion in reducing costs this year.
The separations began to start August 31 for drivers and September 30 for managers. The purpose of the company is to match the level of network employees by reducing the volume of Amazon, the main customer.
“This is a clear sign that they do not see that this volume is back,” said Jeremy Tanordi, a partner in the practice of Operation West Monroe and a former UPS industry engineer.
The incentive to buy drivers with a minimum payment of $ 10,000 a year is $ 1800 a year, a move that experts say is to change the higher -income veterans’ UPS employees to accept the offer. “Payment can be close to retirement drivers, but for other employees, it is also less for other employees,” said Alan Amaling, an assistant professor at Tennessee and former VP.
This is not the first UPS attempt to modify employee rankings in recent years. In 2024, the company made targeted reduction in managerial roles and contracting positions in 2024 because the demand was adjusted.
This year has continued this year before the purchase begins. From Q1 to Q2, the number of employees covered by the National UPS contract with the International Teamsters Brotherhood with 14,000 has been reduced among the wave of facility closure. The contract covers the Delivery Driver Driver, packages of packages, and other employee groups that use the shipping company network.
The UPS manufacturer’s team ranks decreased
The number of UPS employees in the United States covered by the International Master’s Degree in Teamsters and complementary agreements with the company since 2022.
Purchase risks
UPS executives said in a July 29 income call that the interest of drivers is in line with the company’s expectations, though they do not share more details. Meanwhile, while the program offers more pressure on TeamSters membership, the union is retreating and asking members to reject the offer.
“You were selling your souls and selling your brothers and sisters,” said President General of the team, Shan Obrine, about the podcast of “better bad ideas” last month.
As the program progresses, a risk for UPS is the potential pressure for long -term customer relationships. For example, a new driver may prefer a business to the delivery that should be done behind the building instead of the front.
But operational cracks were shown even before the UPS driver began to buy, Obine said. “The purchase program is difficult for UPS due to” widespread overtime problem in the whole country “, while drivers have up to 12 hours of work to provide all packages,” said the Teamsters leader. According to Obrine, this will lead to more customer waiting time for delivery.
He added that hiring more drivers restricts over overtime and helps the transport company fulfill its national contract obligations for full -time job opportunities. This requires UPS to give part -time workers the opportunity to fill at least 22,500 full -time openings.
“You are selling your soul and selling your brothers and sisters if you make this purchase.”
Sean Obrine
President General, International Brotherhood Teamsters
In an email to provide a chain dive, UPS has made O’Brien overtime, but said he is still committed to providing a high level of service among its network and staff settings. UPS also said that in its national contract with Teamsters, it is fulfilled or beyond the needs of the staff.
For drivers, UPS may still need more overtime to cover the service gaps as you approach the crowded holiday season, Amling University. If needed by existing workers, the company can hire seasonal support drivers during the peak season, in any UPS contract with Teamsters.
According to UPS that the Amazon volume is expected to decline by more than 50 % by June 2026, the reported confidence can be eliminated. However, if UPS sees that over -expected demand in future neighborhoods, the delay can be increased as capacity is working to expand capacity.
“While they save, it is much easier to eliminate facilities and jobs in the recession than adding facilities to a bump and job,” Amling said.
A partner in basic repairs
UPS could turn to the US Postal Service, a long -standing partner, to provide the last mile capacity while still reducing delivery costs, according to Mark Varok.
At the beginning of the year, the two carriers completed their Surepost delivery arrangement, in which UPS left some packages to the postal service using the economy service. But the two sides are discussing the potential unity for Surepost-now called Ground Saver, because UPS is at unexpected costs to offer all that internal volume.
” [Teamsters] Waerek said the union did a great job for the worker, but unfortunately its costs to serve the residential market are huge. “And I think the post office will be a big partner.”
Editor’s note: This story was first published in our weekly logistics newsletter. Register here
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