A federal judge in Massachusetts has shut down the Teamsters' bid to freeze United Parcel Service's latest round of driver buyouts, clearing the way for the company to again dangle $150,000 separation payments in front of eligible drivers. The ruling does not settle the union's complaints. Instead, it sends those disputes back into the contract's grievance and arbitration process. For now, UPS can move ahead while the legal brawl shifts behind closed doors.
UPS, headquartered in Atlanta, has been reshaping its workforce as package volumes slide. Roughly 80% of the company's approximately 370,000 U.S. employees are represented by the Teamsters, according to The Atlanta Journal-Constitution. The outlet reported that UPS cut 48,000 positions in 2025 and shuttered scores of facilities as part of a network realignment that hit the Atlanta area as well. That backdrop helps explain why the company is rolling out what it calls the Driver Choice Program.
Chief U.S. District Judge Denise J. Casper denied the union's motion in a Feb. 20 memorandum and order, writing, "Here, the Union has failed to demonstrate that this is one of the rare cases warranting issuance of a labor injunction," as set out in the court's opinion. The court concluded that the grievance and arbitration procedures in the National Master Agreement are the proper venue for this fight rather than a federal injunction. The full memorandum and order are posted on the court docket.
The Driver Choice Program would make about 105,000 drivers eligible for a $150,000 lump-sum payment in addition to any earned retirement benefits, with an enrollment window that the court said would run from Feb. 13 to March 12 and separations expected to begin around April 26, according to industry reporting. Supply Chain Dive notes that UPS ran a similar program in 2025 that drew roughly 3,000 participants out of about 115,000 eligible drivers, a turnout that leaves the potential scale of this round unclear. Judge Casper also observed that arbitrators could later undo separations if they find the program violated the contract.
The Teamsters argue the plan amounts to unlawful direct dealing that cuts around collective bargaining and that the release language tied to the buyouts would prevent drivers from pursuing grievances, claims the union laid out in its court filings. In a press release, the union asked the court to pause the rollout until pending grievances over last year's program are resolved and warned the buyouts could "cause irrevocable harm." The Teamsters have framed the case as a defense of the 2023 national contract and say they will press their grievances through the National Grievance Committee and arbitration.
UPS told reporters that the Driver Choice Program is voluntary, that it engaged with the Teamsters in early January, and that it will share details with drivers in the coming days, according to The Atlanta Journal-Constitution. The company said the payment would come in addition to retirement and health-care benefits and described the program as an option for employees while it reshapes its network. UPS has characterized the move as part of a broader effort to right-size operations as demand and customer mixes shift.
Legal outlook
The ruling underscores how tough it is to get a labor injunction and highlights courts' reluctance to issue so-called reverse Boys Markets orders against employers, legal analysts said. Bloomberg Law reported that Chief Judge Casper emphasized arbitration as the proper remedy if the union ultimately wins on the merits. In practice, that means an arbitrator, not the federal judge, will have the first chance to order remedies such as voiding separations, awarding back pay, or otherwise crafting relief.
What drivers and locals are watching
Local Teamsters leaders and rank-and-file drivers are expected to watch enrollment levels closely and to see whether UPS imposes any caps, since a high participation rate could complicate any later attempt to unwind the program, industry reporting noted. Supply Chain Dive says arbitration over grievances from the 2025 program is scheduled soon and that locals could seek location-specific relief there. Either way, departures can proceed while the union pursues its contractual claims, which could lead to remedies after the fact.
For now, the ruling lets UPS move ahead with its Driver Choice Program while the union takes its claims through the National Grievance Committee and, if needed, to binding arbitration. The memorandum and order, filed in the U.S. District Court for the District of Massachusetts, outlines the procedural path the parties will follow next. Those interested in the filings can consult the court docket for the full memorandum and related documents.
