SANDY SPRINGS, Ga. — Sandy Springs-based United Parcel Service reached an agreement with the International Brotherhood of Teamsters after the union organization sued. Both organizations announced the settlement on Sunday.
Channel 2 Action News reported when the Teamsters sued UPS over the company’s voluntary buyout offers, the Driver Choice Program.
Union representatives said the “unilateral driver buyouts” were illegal and were offered without any discussion or negotiation with the organization.
In February, the Teamsters sued UPS, arguing that the $150,000 severance packages and permanent separation from UPS were against their agreements with the company.
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On Sunday, UPS announced an agreement was reached, nationally, with the Teamsters to offer the Driver Choice Program across the United States, allowing interested employees to apply for the option.
“Applications will be approved based on seniority and the needs of the business, as originally planned,” a UPS spokesperson said in a statement. “As UPS makes changes to position itself for the future, our focus remains the same — supporting our people while delivering the reliable service our customers expect."
The Teamsters Union’s announcement on the settlement agreement said grievances filed in 13 states would be withdrawn and the new settlement agreement would limit the number of severance packages UPS can offer.
“UPS never had the contractual right to unilaterally offer driver buyouts, but with enough pressure and member solidarity UPS finally did the right thing by putting its commitments to hardworking Teamsters down in writing,” Teamsters General President Sean M. O’Brien said. “Lifelong Teamsters who have given so much of themselves to making UPS the king of parcel delivery will have the right of first refusal on any severance agreements.”
Going forward, UPS will not pursue other severance programs for the life of the current Teamsters National Master Agreement, the union said.
The settlement terms mean UPS is capped at offering severance to a cap of 7,500 drivers, nationally.
“Union seniority and the rights of all our members will be honored. UPS will no longer have the chance to go around the union without giving Teamsters the respect they deserve at the bargaining table,” O’Brien added.
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