UPS Wins Court Approval for $150,000 Driver Buyout Program

A federal judge dismissed a Teamsters union request on February 21, 2026, allowing UPS (NYSE: UPS) to proceed with a voluntary $150,000 buyout program for drivers. The ruling clears the way for the company to inform 105,000 eligible employees about the separation offers starting the week of February 24. Judge Denise Casper ruled that arbitration remains the proper venue for contract disputes and that layoffs would harm workers more than voluntary buyouts. UPS seeks to reduce its workforce amid an 8.6% drop in average daily volume in 2025, planning to eliminate 30,000 frontline positions this year. The union estimates 10,000 drivers will accept the lump sum payment, with voluntary separations scheduled to begin by the end of April 2026.