UPS plans to offer voluntary redemptions to allied delivery drivers for the first time in its history, as it seems to align the workforce as it reduces its internal terrestrial network and Amazon’s business.
The news follows the opening of the leadership in April about the intention of removing 20,000 first-line positions as part of a broader effort to reduce excess capacity and improve profit. The UPS (NYSE: UPS) network optimization plan, called Network of the Future, envisages closing 200 sorting centers for five years and increasing the automation for package processing. Dozens of facilities have already been consolidated in the last year.
Package drivers will “receive a generous financial package if they decide to leave UPS” at the top of the won retirement benefits, including retirement and health care, said in a message from Parcel Freight Company in a message on Thursday. “As we navigate an unprecedented business landscape, we run the biggest network configuration in UPS history,” and we need to adjust the Headcount similarly, the company explained.
The volumes of the plot are under pressure from different winds, including Trump administration tariffs, which delayed imports and January solution to reduce Amazon’s 50% business in 18 months, as so much of it is unprofitable.
The UPS voluntary compensation plan angered the Teamster Union, which says that the Atlanta -based company is obliged to create 30,000 jobs under a five -year contract ratified in August 2023, which prevented a national strike. He urged members to reject the buying offer.
“UPS is trying to get out of the creation of good jobs in the Union here in America, hanging offensive redemptions to Teamsters drivers. This is an illegal violation of our national treaty,” said Teamster President Sean O’Brien in a news message. “UPS is obliged to create tens of thousands of new full -time jobs under the agreement. But corporate managers of Executive Director Carol Tome and UPS hope that if they offer packages for compensation to enough workers, no one will notice that the company is a contract with the Union.
Contracts for the team to allow UPS drivers employed 30 or more years to receive health care for employers throughout the retirement, compensation that would not be guaranteed to all UPS plan workers, according to the Union. This Treaty requires UPS to raise 22,500 part -time workers at full -time positions and create another 7500 positions.
“We have turned to the teams on this topic and we remain engaged in the agreements we reached in 2023,” UPS said.