UPS's Illegal Buyout Plan: A Betrayal of Teamsters and Workers

UPS IS ON THE BRINK OF A MAJOR MISTAKE!

The logistics giant, United Parcel Service (UPS), is about to unveil a plan that could shake the foundations of its relationship with the Teamsters union. The proposed Driver Voluntary Severance Plan (DVSP) is a corporate scheme that will directly violate the union’s national contract protecting 340,000 delivery workers. This is a betrayal of the workers who have kept UPS running for decades!

WHAT IS THE DVSP AND WHY IS IT A PROBLEM?

The DVSP would offer cash to drivers to initiate early retirement or quit their job. This plan, which UPS has not yet publicly disclosed, would leave most drivers without quality health insurance if they retire under the program. This is a slap in the face to the workers who have given their blood, sweat, and tears to UPS!

The DVSP would also undermine UPS’s own legal commitment to create 22,500 more jobs under its current Teamsters contract. This is a direct violation of the agreement, which guarantees the creation of new full-time jobs. The Teamsters General President Sean M. O’Brien has called this plan an "illegal violation of our national contract."

THE LEGAL RAMIFICATIONS ARE SEVERE!

If the DVSP is implemented, UPS could face significant legal ramifications. The Teamsters have already indicated that they are prepared to fight UPS on every front with every available resource to shut down this illegal buyout program. This is a battle that UPS cannot afford to lose!

The DVSP could also be seen as a violation of the National Labor Relations Act, which protects the rights of employees to organize and bargain collectively. If the DVSP is found to be in violation of the act, UPS could face fines and other penalties from the National Labor Relations Board. This is a legal minefield that UPS is walking into!

THE LONG-TERM IMPACTS ARE DEVASTATING!

The potential long-term impacts on UPS's workforce and operational efficiency if the DVSP is successfully executed could be significant. The DVSP could lead to a reduction in the number of experienced drivers, potentially affecting the company's ability to maintain operational efficiency. This is a recipe for disaster!

Moreover, the DVSP could undermine UPS's contractual obligations to create new full-time jobs. The historic five-year agreement that UPS Teamsters ratified in August 2023 guaranteed the company would fill at least 22,500 permanent full-time jobs with existing part-time workers and create at least 7,500 additional full-time jobs during the final three years of the contract. However, if a significant number of drivers accept the DVSP, UPS may struggle to meet these obligations. This is a betrayal of the workers and the union!

THE TEAMSTERS ARE FIGHTING BACK!

The Teamsters are not going to take this lying down. They have formally requested data from UPS on the status of open positions, as well as the rate of delivery of package cars and vans equipped with air conditioning. Article 18 of the Teamsters contract requires UPS to provide no less than 28,000 air-conditioned vehicles to drivers by 2028. The union gave the company until July 1 to respond to the information request, but UPS has not provided any data and instead requested additional time to respond. This is a stalling tactic that the Teamsters will not tolerate!

The Teamsters are also seriously evaluating whether UPS has recently begun diverting some delivery work to nonunion affiliates. This is a clear attempt by UPS to undermine the union and its members. The Teamsters are prepared to fight back with every available resource!

THE BOTTOM LINE: STAY AWAY FROM UPS STOCK!

If you are an investor, STAY AWAY FROM UPS STOCK! This company is on the brink of a major legal and operational disaster. The DVSP is a betrayal of the workers and the union, and it could have devastating long-term impacts on the company. This is a stock that you do not want to own!