UPS is offering a new severance plan for its full-time drivers as the company goes through a major reorganization.
What's new: Starting July 18, 2025, full-time UPS drivers who choose to leave the company can get a one-time payment of $1,800 for each year they've worked at UPS. There's a minimum payout of $10,000, even for those with less experience.
- This buyout is completely voluntary; drivers can decide what's best for their family.
- Those who take the offer will still get any earned retirement benefits, including pension and healthcare.
- UPS says this is part of the biggest network overhaul in their history.
The numbers: Drivers with a long history at UPS could get a big payout. For example, someone with 25 years in would get $45,000.
UPS says the company remains "committed to the agreements we reached in 2023, as part of our contract negotiations," according to an official statement.
Union leaders from the Teamsters, who represent 300,000 UPS workers, are telling drivers to turn down the offer, calling it a "slap in the face" to hardworking members.
The program is the first of its kind for UPS drivers and comes as the company tries to adapt to big changes in their business network.